New SSS Contribution Table 2024: What You Need to Know

The Social Security System (SSS) in the Philippines plays a crucial role in providing financial assistance and protection to millions of Filipinos during life’s most challenging times, such as sickness, disability, maternity, and retirement. One of the most important aspects of being an SSS member is knowing the current contribution rates, which are outlined in the SSS Contribution Table. With the 2024 SSS Contribution Table update, it’s essential to understand how these changes affect your payments and benefits.

In this article, we’ll walk you through the important updates in the SSS Contribution Table for 2024, who is affected, and why it’s essential to keep track of these changes for your financial well-being. new sss contribution table

Key Changes in the 2024 SSS Contribution Table

Starting in 2024, the SSS contribution rates have been adjusted to further strengthen the pension fund and provide better long-term benefits for all members. Here’s what you need to know:

1. Increased Contribution Rate

The SSS contribution rate has increased to 14% of the Monthly Salary Credit (MSC) in 2024, up from 13% in previous years. This change is part of the SSS’s long-term plan to ensure the sustainability of the fund, particularly with the growing number of retirees. The increase is shared between employees and employers, with employers shouldering the majority of the contribution.

2. Higher Maximum Monthly Salary Credit

The Maximum Monthly Salary Credit (MSC) has also been adjusted in the new SSS contribution table. In 2024, the MSC cap has increased to ₱35,000 from ₱30,000 in 2023. This change allows higher-income earners to contribute more, thereby securing a larger benefit pool for themselves upon retirement.

3. Contributions for Voluntary and Self-Employed Members

Self-employed and voluntary members are responsible for their total SSS contribution, unlike employed members who share the cost with their employers. In 2024, self-employed and voluntary members will also contribute 14% of their MSC. Depending on their declared income, their contributions can range from ₱560 to ₱4,900 per month, based on the MSC bracket.

4. New Contribution Scheme for OFWs

The SSS has rolled out a new contribution scheme for Overseas Filipino Workers (OFWs), allowing them to pay higher contributions to secure better benefits. With the new MSC limit, OFWs can now contribute based on their actual income, allowing them to avail larger pensions and other benefits.

5. Mandatory Provident Fund Contributions

In addition to the regular SSS contributions, members earning above the ₱20,000 salary credit are now required to contribute to the Workers' Investment and Savings Program (WISP). The WISP is a provident fund designed to enhance the retirement savings of members. Contributions to the WISP are automatically deducted once the member’s MSC exceeds the ₱20,000 mark.

How These Changes Affect You

Whether you are an employee, employer, self-employed, voluntary member, or an OFW, the updated contribution rates will have an impact on your monthly payments and future benefits. Here’s how these changes affect different groups:

For Employees and Employers:

• The new 14% contribution rate is shared between employers and employees, with employers contributing 9.5% and employees contributing 4.5%. If your MSC is ₱35,000, your total contribution would be ₱4,900, with ₱3,325 coming from your employer and ₱1,575 from your salary.

For Self-Employed and Voluntary Members:

• Self-employed and voluntary members will shoulder the full 14% contribution. The increase in MSC cap gives these members the opportunity to contribute more for greater retirement benefits. If you’re self-employed earning ₱35,000, your contribution would be ₱4,900 monthly.

For OFWs:

• With the new contribution scheme for OFWs, you can now contribute based on your income, ensuring you can maximize the benefits of your SSS membership even while working abroad.

Benefits of the Updated SSS Contribution Table

While the increase in SSS contributions may initially seem burdensome, it ultimately enhances the quality of benefits available to members. Here’s why the updated SSS contribution table for 2024 is beneficial:

• Higher Pensions: Contributing more now means you’ll enjoy higher pensions when you retire.
• Better Protection: Increased contributions provide better protection for sickness, maternity, disability, and other benefits.
• Enhanced Retirement Savings: With the addition of the WISP, you can boost your retirement savings to ensure a more comfortable life after your working years.

Conclusion

The 2024 SSS Contribution Table reflects the ongoing efforts of the SSS to provide better benefits and security to its members. Understanding these changes is crucial for ensuring that you contribute the correct amount and maximize the benefits available to you. Whether you are employed, self-employed, or working abroad, staying updated with the new contribution rates will help you plan for a financially secure future.