Pursuant to Republic Act No. 11199, otherwise known as Social Security Act of 2018 which includes provision that increases the SSS Contribution rate effective January of the year of implementation as follows:
In a statement made last December 20, 2022 by Mr. Michael Regino, SSS President and CEO, the “four-stage” contribution rate hike under RA 11199 readies the SSS fund for the future needs of its members. This will ensure the pension funds viability for the benefits of its members, pensioners and their beneficiaries. According to the SSS Chief, latest actuarial valuation revealed that the pension fund’s life would last until 2054.
Starting January 1, 2023 as per Social Security Commission (SSC) Resolution No 751-S 2022 dated November 25, 2022, the new SSS contribution rate will be 14 percent, a one percent increase from the current of 13 %. The 14 percent is composed of 9.5 % Employer Share and 4.5% Employee Share while the minimum Monthly Salary Credit (MSC) will be increased from P3,000 to P4,000 and the maximum MSC from P25,000 to P30,000. The 1 % increase is to be shouldered by the employer and employee’s share remains at 4.5%.
How to check your monthly contribution as an employed member?
Determine how much your gross salary is and check on the SSS contribution table above on which income bracket you belong and then look for the Total Employee (EE) column. Or simply download the new SSS table and calculator below.
Non-remittance or remitting understated SSS contribution may result for Assessment with the Social Security System. Your payroll system must be equipped with these mandatory changes. With AanyaHR, there is no need to worry as the system automatically updates with every increases mandated by the Philippine Government Agencies. For more features, visit our website at www.aanyahr.com and book a demo now!