In this article, you’ll find the changes to the SSS contribution table 2019 short for Social Security System. No matter what you do for a living, everyone should be aware of the SSS contribution table changes; this might very much affect your finances.
The Social Security Commission has announced that from the beginning of April 2019, the SSS contribution rate will increase to 12%. As well as the increasing rate of SSS contribution, the maximum monthly salary is also set to increase.
Here we’ll outline the main changes to SSS contribution table 2019 and how will it affect your overall finance condition.
Lets clear some doubts with these FAQ regarding the new SSS Contribution Table 2019.
Frequently Asked Questions (FAQ) regarding SSS Contribution Table 2019
What is SSS?
SSS stands for the Social Security System. SSS is a pension fund for the individuals working in the Philippines and its run by the states. In simple words, SSS is an insurance scheme that covers its members with various benefits for the lifetime.
How does SSS work, Employer Perspective?
As per the new SSS contribution table, Employers are bound to contribute a percentage (%) of their employee’s salaries into the SSS on a monthly basis. The contribution will become a form of savings that employees will be able to access during their retirement.
As well as the retirement benefit, members can also avail of various other types of benefits including sickness, disability, and maternity benefits.
What is the Increase?
From April 2019, the SSS contribution rate increased from 11% to 12%. This 1% contribution rate increase is based on the minimum monthly salary credits (MSC). The maximum monthly salary credit also increases, from ₱16,000 to ₱20,000.
Who is Financing the Contribution? The Employer or the Employee?
In a single word, Both. The employer is bound to contribute two-thirds of the payment which makes the employee contribute one third.
Will SSS Contribution Table 2019 Affect Self-Employed Person?
Yes, if you are self-employed; you are required to calculate and pay the SSS contribution yourself.
SSS Contribution Table 2019, Rates & More
You can find the detailed information on the SSS’s official website here.
Thanks for visiting Tech Connect Ph to find out about SSS Contribution Table 2019, we’ll keep posting new updates on this webpage. The next change of SSS contribution is coming in 2021.