SSS & Statutory Benefits

How to Compute SSS Contributions in the Philippines (2026)

Kinsweldo Editorial Team· ·8 min read
TL;DR — Key Takeaways

SSS contribution in 2026 is 15% of the Monthly Salary Credit (MSC) — employer pays 10%, employee pays 5%, the final RA 11199 rate in force since January 2025. MSC brackets run from ₱5,000 to ₱35,000; the portion above MSC ₱20,000 goes to the mandatory provident fund (MPF/WISP). Match the employee salary to the SSS bracket table, read the MSC, then apply the split. Late remittance carries a 3% monthly penalty plus criminal liability under RA 11199.

What Is SSS and Why Is It Mandatory?

The Social Security System (SSS) is the Philippines' social insurance program for private-sector employees. Under Republic Act 11199 (Social Security Act of 2018), all employers with one or more employees must register with SSS and remit monthly contributions — no exceptions.

SSS contributions fund retirement pensions, disability benefits, sickness allowances, maternity reimbursements, and death/funeral grants. These are not optional deductions — failure to remit is a criminal offense under RA 11199, with penalties that include fines and imprisonment for responsible officers.

SSS Contribution Rates in 2026

The total SSS contribution rate is 15% of the Monthly Salary Credit (MSC) — the final scheduled increase under RA 11199, in effect since January 2025 per SSS Circular No. 2024-006 and unchanged for 2026 — split as follows:

ContributorRateExample (MSC ₱20,000)
Employer10%₱2,000
Employee5%₱1,000
Total15%₱3,000

An additional Employee Compensation (EC) premium — paid entirely by the employer — is also required. This is separate from the 15% and is ₱10 or ₱30 per month depending on the MSC bracket.

What Is the Monthly Salary Credit (MSC)?

The MSC is not the employee's exact salary. SSS uses a bracket table — your employee's salary is matched to the nearest range, and the MSC for that bracket is used to compute the contribution. This is why two employees with slightly different salaries may have the same SSS deduction.

In 2026, the MSC range is ₱5,000 minimum to ₱35,000 maximum. Contributions on the MSC portion above ₱20,000 go to the SSS mandatory provident fund (MPF/WISP) — you remit one total; SSS allocates it. Key reference points:

Monthly Salary RangeMSCEmployer (10%)Employee (5%)Total
Below ₱5,250₱5,000₱500.00₱250.00₱750.00
₱9,750 – ₱10,249.99₱10,000₱1,000.00₱500.00₱1,500.00
₱14,750 – ₱15,249.99₱15,000₱1,500.00₱750.00₱2,250.00
₱19,750 – ₱20,249.99₱20,000₱2,000.00₱1,000.00₱3,000.00
₱24,750 – ₱25,249.99₱25,000₱2,500.00₱1,250.00₱3,750.00
₱29,750 – ₱30,249.99₱30,000₱3,000.00₱1,500.00₱4,500.00
₱34,750 and above₱35,000₱3,500.00₱1,750.00₱5,250.00

Step-by-Step: How to Compute SSS Contribution

  1. Get the employee's regular monthly salary (basic salary only — exclude overtime, allowances, and bonuses).
  2. Match the salary to the SSS bracket table to find the correct range.
  3. Read the Monthly Salary Credit (MSC) for that bracket.
  4. Employer share = MSC × 10%
  5. Employee share = MSC × 5% (deduct from employee pay)
  6. Add the EC premium (employer-only; check current SSS schedule).

Worked Example

Employee earns ₱22,000/month basic salary:

  • Bracket: ₱21,750 – ₱22,249.99 → MSC = ₱22,000
  • Employer share: ₱22,000 × 10% = ₱2,200.00
  • Employee share: ₱22,000 × 5% = ₱1,100.00 (deducted from paycheck)
  • Total SSS for this employee: ₱3,300/month, plus the employer-only EC premium (₱30 at this MSC)

SSS Remittance Deadlines

SSS uses a rotating schedule based on the last digit of the employer's SSS number:

Last Digit of Employer SSS No.Monthly Deadline
1 or 210th of the following month
3 or 415th of the following month
5 or 620th of the following month
7 or 825th of the following month
9 or 0Last working day of the following month

Penalties for Late or Non-Remittance

SSS enforcement is strict. Under RA 11199, the penalties are:

  • Late remittance penalty: 3% per month on the unremitted amount, computed from the due date
  • Criminal liability: Imprisonment of 6 years and 1 day to 12 years plus fines for responsible officers (president, HR manager, finance officer)
  • Civil liability: SSS can file suit to recover all unpaid contributions, penalties, and damages
Warning: Deducting SSS from employees but not remitting it to SSS constitutes misappropriation. It is treated as a criminal act under Philippine law and is one of the most serious payroll violations a company can commit.

The SSS R3 Report: What It Is and How to File It

Every month, employers must submit the SSS R3 Contribution Collection List together with payment. This lists each covered employee, their MSC, and the contribution amounts. You can file via My.SSS (online portal), SSS-accredited banks, or SSS branch counters.

If you use payroll software, the R3 should generate automatically from each payroll run. Manual preparation is a spreadsheet exercise prone to errors — a single wrong MSC entry can trigger an SSS audit.

Frequently Asked Questions

Is SSS computed on basic salary or gross salary?

SSS is based on the employee's regular monthly compensation — generally basic salary. Overtime pay, allowances, and bonuses are not included unless they are regular and contractual.

What if an employee earns more than ₱35,000 per month?

Contributions are capped at the maximum MSC of ₱35,000. An employee earning ₱50,000 or ₱200,000 pays the same SSS amount as an employee earning ₱35,000 — employer: ₱3,500 (plus ₱30 EC), employee: ₱1,750 per month.

Are contractual and probationary employees covered by SSS?

Yes. Any employee rendering services for compensation — full-time, part-time, contractual, or probationary — must be covered by SSS from day one of employment.

When must a new employee be reported to SSS?

Employers must file SSS Form R-1A (Employment Report) within 30 days of the employee's hiring date. Contributions must begin in the first month of employment.

Can an employer shoulder both the employer and employee share of SSS?

Yes, as a benefit — but the amount shouldered becomes taxable compensation for the employee. The employer must include it in the employee's gross compensation for BIR withholding tax purposes.

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