In 2025, the Philippine Social Security System (SSS) put into effect major alterations in its contribution schedule as part of their efforts to further improve the salary-earned benefits and economic security of their members. This article gives a comprehensive study of the new SSS payment schedule concerning different benefits and credits, applicable from January 2025.
A Brief on 2025’s Adjustments to the SSS Contribution Rate
Under Republic Act No. 11199 or the Social Security Act of 2018, the SSS raised contribution rates by 1% every January as part of the gradual increase provided by the said act towards strengthening of the fund and ensuring sustainability of member benefits. Hence, there was an increase in contribution rates to 15% beginning January 2025.
Updated MSC New Range
Together with the increased contribution rate, the SSS has also imposed changes on the Monthly Salary Credit thresholds where the minimum MSC was raised to ₱5,000 and the maximum amount was raised to ₱35,000. These adjustments intend to higher benefit computations from members while still reflecting the reality of their earnings.
Contributions Breakdown According to Membership Categories
Employers and Employees
The contribution rate of 15% is shared between the employer and the employee for regular employees, where 10% of that of the MSC is supposed to be covered under the employer’s side while 5% under the employee’s side. For example, if an employee earns an MSC of ₱20,000, then he/she would contribute ₱1,000 monthly and the employer would contribute ₱2,000 bringing the total contribution to ₱3,000 a month. However, there are also other EC contributions by employers under Employees’ Compensation Programs at ₱10 or ₱30, depending on the MSC bracket.
Self-Employed Members
Self-employed persons calculate their contributions from their declared monthly earnings within MSC. Their total contribution is 15% of the declared MSC. For example, if a self-employed individual declares ₱15,000 MSC, he/she will pay contributions amounting to ₱2,250 monthly. This amount includes all regular Social Security benefits and also comprises the EC Program.
Voluntary Members and Non-Working Spouses
Voluntary members and non-working spouses have the freedom to opt for any of the MSCs of their choice, provided it does not exceed 50% of the MSC of their working spouses. This means that their whole contribution would be 15% of the selected MSC. For example, if the spouse selects an MSC equivalent to ₱10,000, the total contribution would amount to ₱1,500 every month. By this, even persons who are not formally employed can avail of social security benefits.
Overseas Filipino Workers (OFWs)
Encouragement is given to OFWs in this case to continue making SSS contributions for as much as they are assured of continued coverage. The amount of contributions received is also 15% of the elected MSC. For example, an insertion of an MSC of ₱25,000 would entail a monthly contribution of ₱3,750, which secures similar benefits to that of a resident worker while working overseas.
SSS Allowances Effects
The adjustments in contribution rates and MSC will have an immediate effect on the computation of SSS benefits.
- Maternity benefits now provide higher daily maternity allowances due to increased contributions. Daily sickness benefits also remain at a cash allowance of 90% of a member’s average daily salary credit, maximum of 120 days a year. The retirement benefit will also be increased since higher contributions tend to increase the monthly pension amount to be received.
- Disability benefits under SSS are improved in providing the higher monthly pensions or lump-sum amounts that members with permanent total disability or permanent partial disability will receive.
- The death benefit has also increased, improving the monthly pensions or sales lump sums that beneficiaries of deceased members will receive. The funeral benefit now ranges from ₱20,000 to ₱40,000, depending on the number of contributions and MSC. Members and their families benefit from enhanced financial support during times of need.
Payment Cut-off Dates and Timelines
Contributions must continuously be paid to qualify for benefits coverage. The SSS gives deadlines based on the last digit of either the employer’s or the individual member’s SS number.
For employers, the contributions are to be remitted on or before the last day of the month after the applicable month. For instance, contributions for January 2025 must be remitted by 28 February 2025.
Self-employed, voluntary members and OFWs contribute monthly or quarterly. Monthly payments are due on the last day of the month. The last day of the third month of each quarter is the payment date for payment quarters (March, June, September, and December).
Conclusion
The SSS contribution adjustments for 2025 will ensure financial viability in the long run while translating to better benefits and security for members over time. It becomes crucial for members to understand the new schedules and the changes in affiliated contribution rates to maximize benefits available.