The new SSS contribution table will be effective in April of 2019. This is pursuant to the Social Security Act of 2018 that will effectively increase the contribution rate from 11% to 12% and will continue to increase by 1% every other year until 2025.
The increase in contribution will not only answer the needs of the retirees, and future retirees like you but it will also lengthen the life of the SSS fund.
New SSS Contribution Table 2019
So here’s the new and improved contribution rate which was previously at 11% that is being shared by the employer at 7.37% and employee at 3.63%.
The 1% increase in contribution this year will simply translate to a higher share of an employee to 4%. Minimum Monthly Salary Credit (MSC) is now pegged at Php 2,000 and the maximum MSC is at Php 20,000.
SSS Contribution Table for ER, EE, SE, VM, & Non-Working Spouse
The new schedule of SSS contribution for an employer (ER), employee (EE), Self-Employed (SE), Voluntary Member (VM), and a non-working spouse based on the SSS Circular no. 2019-005 will take effect in April 2019. Increasing the employee’s share from 3.63% to 4%.
You can now use the table above to compute your monthly contributions. However, this is only useful until 2020 because it will change again in 2021.
If you’re an employee receiving a Php 25,000 monthly income then your new contribution will be Php 800. This is an increase of Php 218.7 from Php 581.3.
READ: How to Compute for SSS Retirement Benefit
SSS Contribution Table for Household Employers & Kasambahay Members
SSS also released a Circular no. 2019-006 for the new SSS contribution schedule applicable to household employers and kasambahay members. Under the Kasambahay Law, the employer shall pay the whole contribution if the kasambahay earns below Php 5,000.
SSS Contribution Table for OFW Members
The SSS Circular No. 2019-007 concerning the new SSS contribution schedule for all OFWs is now released. This is with respect to the Social Security Act of 2018 which treats all OFWs as a compulsorily covered employee with employer and employee shares in contributions. Provided that there is a bilateral labor agreement for land-based and sea-based OFW’s.
The increase will not only give better benefits to its members but it will also extend the life of the fund. Plus OFWs are now compulsory members which further protect their family should anything happen to them while away from home. Or if they plan to go back or even retire here they will still have something to lean on.
Despite the changes in benefits, it may still not be enough by the time you’ll retire. Who doesn’t want a blissful retirement away from worrying where to get additional money day after day? None, right?
READ: Sun Maxilink Prime| The Best-Selling VUL Plan from Sun Life
You may consider getting an insurance or investment plan that can aid you in achieving the life you deserve. After all, you don’t just work to pay your bills. Learn to secure your future as well 🙂
Federico is an electronics engineer, financial blogger, insurance agent, and a certified investment solicitor. A multi-awarded financial advisor with clients ranging from lawyers, doctors, engineers, accountants, business owners, company directors, and OFWs to minimum wage earners had sought advice from him in achieving lifetime financial freedom.