On 19 December 2024, the Philippine Social Security System (SSS) released Circular 2024-06, implementing a one percentage point increase in the contribution rate effective January 2025.1
The combined employer and employee Philippine SSS contribution, therefore, increased to 15 percent (from 14 percent). This marks the final phase of SSS rate adjustments under the 2019 statute RA 11999.
Employees will pay 5 percent of their monthly salary instead of the previous 4.5 percent, meaning their take-home pay, generally, will be slightly smaller. Employers will also contribute more, increasing their share from 9.5 percent to 10 percent. While this adds to costs for both sides, it is designed to provide better future benefits like higher pensions and improved financial security for members of the system.
Employers and payroll administrators should have already made adjustments to their processes in light of the increase in contribution rates. Communications to affected parties should also have been issued already to inform stakeholders of the changes affecting them.
Staying informed about the increased SSS contribution rates is crucial for employers to administer proper tax deductions and foster compliance with the latest regulations.
The Social Security Act of 2018 was signed into Philippine law as Republic Act No. (RA) 11199 on 7 February 2019, to create a social security system that helps Filipinos save and protects them from financial hardships caused by disability, sickness, maternity, old age, or loss of a loved one. It also provides for benefits for Philippine workers both in the Philippines and abroad, encouraging them to work, save, and invest.
The law took effect on 5 March 2019.2
The Philippine SSS implemented the following key changes for employees and employers effective 1 January 2025:
1 The total SSS contribution rate has risen from 14 percent to 15 percent. For employed members, this means employers now contribute 10 percent (up from 9.5 percent), while employees contribute 5 percent (up from 4.5 percent).
2 The SSS has adjusted the Monthly Salary Credits (MSCs), increasing the minimum to PHP 5,000 (from PHP 4,000) and the maximum to PHP 35,000 (from PHP 30,000).
In summary, the following tables show the comparison between the old and new provisions on the increases in SSS contributions.
Old Provision:
Year(s) | Contribution Rate | Employer Share | Employee Share | Minimum Monthly Salary Credit (MSC) | Maximum Monthly Salary Credit (MSC) |
2023-2024 | 14.0% | 9.5% | 4.5% | PHP 4,000.00 | PHP 30,000.00 |
Source: KPMG in the Philippines
New Provision:
Year | Contribution Rate | Employer Share | Employee Share | Minimum Monthly Salary Credit (MSC) | Maximum Monthly Salary Credit (MSC) |
2025 | 15.0% | 10.0% | 5.0% | PHP 5,000.00 | PHP 35,000.00 |
Source: KPMG in the Philippines
For a detailed schedule of 2025 SSS contributions, see Appendix A.
[ PHP 1 = EUR 0.016 | PHP 1 = USD 0.017 | PHP 1 = AUD 0.0275 | PHP 1 = JPY 2.6448 ] Source: www.xe.com
Employers are encouraged to update their payroll systems and inform their employees about the SSS contribution changes to foster regulatory compliance and smooth implementation.
Parties affected by the above-noted changes may have questions or concerns about how the rate increases impact them and how they should appropriately adjust their procedures and policies in light of the changes; they are advised to contact their usual social security and payroll professionals or a member of the GMS tax team with KPMG in the Philippines (see the Contacts section).
Range of Compensation (PHP) | Old SSS Premium Contributions (PHP) | New SSS Premium Contributions (PHP) | |||||
January 2023 to December 2024 | Effective January 2025 | ||||||
Employer | Employee | TOTAL | Employer | Employee | TOTAL | ||
BELOW 5,250.00 | 390.00 | 180.00 | 570.00 | - | - | - | |
437.50 | 202.50 | 640.00 | - | - | - | ||
485.00 | 225.00 | 710.00 | 510.00 | 250.00 | 760.00 | ||
5,250.00 | 5,749.99 | 532.50 | 247.50 | 780.00 | 560.00 | 275.00 | 835.00 |
5,750.00 | 6,249.99 | 580.00 | 270.00 | 850.00 | 610.00 | 300.00 | 910.00 |
6,250.00 | 6,749.99 | 627.50 | 292.50 | 920.00 | 660.00 | 325.00 | 985.00 |
6,750.00 | 7,249.99 | 675.00 | 315.00 | 990.00 | 710.00 | 350.00 | 1,060.00 |
7,250.00 | 7,749.99 | 722.50 | 337.50 | 1,060.00 | 760.00 | 375.00 | 1,135.00 |
7,750.00 | 8,249.99 | 770.00 | 360.00 | 1,130.00 | 810.00 | 400.00 | 1,210.00 |
8,250.00 | 8,749.99 | 817.50 | 382.50 | 1,200.00 | 860.00 | 425.00 | 1,285.00 |
8,750.00 | 9,249.99 | 865.00 | 405.00 | 1,270.00 | 910.00 | 450.00 | 1,360.00 |
9,250.00 | 9,749.99 | 912.50 | 427.50 | 1,340.00 | 960.00 | 475.00 | 1,435.00 |
9,750.00 | 10,249.99 | 960.00 | 450.00 | 1,410.00 | 1,010.00 | 500.00 | 1,510.00 |
10,250.00 | 10,749.99 | 1,007.50 | 472.50 | 1,480.00 | 1,060.00 | 525.00 | 1,585.00 |
10,750.00 | 11,249.99 | 1,055.00 | 495.00 | 1,550.00 | 1,110.00 | 550.00 | 1,660.00 |
11,250.00 | 11,749.99 | 1,102.50 | 517.50 | 1,620.00 | 1,160.00 | 575.00 | 1,735.00 |
11,750.00 | 12,249.99 | 1,150.00 | 540.00 | 1,690.00 | 1,210.00 | 600.00 | 1,810.00 |
12,250.00 | 12,749.99 | 1,197.50 | 562.50 | 1,760.00 | 1,260.00 | 625.00 | 1,885.00 |
12,750.00 | 13,249.99 | 1,245.00 | 585.00 | 1,830.00 | 1,310.00 | 650.00 | 1,960.00 |
13,250.00 | 13,749.99 | 1,292.50 | 607.50 | 1,900.00 | 1,360.00 | 675.00 | 2,035.00 |
13,750.00 | 14,249.99 | 1,340.00 | 630.00 | 1,970.00 | 1,410.00 | 700.00 | 2,110.00 |
14,250.00 | 14,749.99 | 1,387.50 | 652.50 | 2,040.00 | 1,460.00 | 725.00 | 2,185.00 |
14,750.00 | 15,249.99 | 1,455.00 | 675.00 | 2,130.00 | 1,530.00 | 750.00 | 2,280.00 |
15,250.00 | 15,749.99 | 1,502.50 | 697.50 | 2,200.00 | 1,580.00 | 775.00 | 2,355.00 |
15,750.00 | 16,249.99 | 1,550.00 | 720.00 | 2,270.00 | 1,630.00 | 800.00 | 2,430.00 |
16,250.00 | 16,749.99 | 1,597.50 | 742.50 | 2,340.00 | 1,680.00 | 825.00 | 2,505.00 |
16,750.00 | 17,249.99 | 1,645.00 | 765.00 | 2,410.00 | 1,730.00 | 850.00 | 2,580.00 |
17,250.00 | 17,749.99 | 1,692.50 | 787.50 | 2,480.00 | 1,780.00 | 875.00 | 2,655.00 |
17,750.00 | 18,249.99 | 1,740.00 | 810.00 | 2,550.00 | 1,830.00 | 900.00 | 2,730.00 |
18,250.00 | 18,749.99 | 1,787.50 | 832.50 | 2,620.00 | 1,880.00 | 925.00 | 2,805.00 |
18,750.00 | 19,249.99 | 1,835.00 | 855.00 | 2,690.00 | 1,930.00 | 950.00 | 2,880.00 |
19,250.00 | 19,749.99 | 1,882.50 | 877.50 | 2,760.00 | 1,980.00 | 975.00 | 2,955.00 |
19,750.00 | 20,249.99 | 1,930.00 | 900.00 | 2,830.00 | 2,030.00 | 1,000.00 | 3,030.00 |
20,250.00 | 20,749.99 | 1,977.50 | 922.50 | 2,900.00 | 2,080.00 | 1,025.00 | 3,105.00 |
20,750.00 | 21,249.99 | 2,025.00 | 945.00 | 2,970.00 | 2,130.00 | 1,050.00 | 3,180.00 |
21,250.00 | 21,749.99 | 2,072.50 | 967.50 | 3,040.00 | 2,180.00 | 1,075.00 | 3,255.00 |
21,750.00 | 22,249.99 | 2,120.00 | 990.00 | 3,110.00 | 2,230.00 | 1,100.00 | 3,330.00 |
22,250.00 | 22,749.99 | 2,167.50 | 1,012.50 | 3,180.00 | 2,280.00 | 1,125.00 | 3,405.00 |
22,750.00 | 23,249.99 | 2,215.00 | 1,035.00 | 3,250.00 | 2,330.00 | 1,150.00 | 3,480.00 |
23,250.00 | 23,749.99 | 2,262.50 | 1,057.50 | 3,320.00 | 2,380.00 | 1,175.00 | 3,555.00 |
23,750.00 | 24,249.99 | 2,310.00 | 1,080.00 | 3,390.00 | 2,430.00 | 1,200.00 | 3,630.00 |
24,250.00 | 24,749.99 | 2,357.50 | 1,102.50 | 3,460.00 | 2,480.00 | 1,225.00 | 3,705.00 |
24,750.00 | 25,249.99 | 2,405.00 | 1,125.00 | 3,530.00 | 2,530.00 | 1,250.00 | 3,780.00 |
25,250.00 | 25,749.99 | 2,452.50 | 1,147.50 | 3,600.00 | 2,580.00 | 1,275.00 | 3,855.00 |
25,750.00 | 26,249.99 | 2,500.00 | 1,170.00 | 3,670.00 | 2,630.00 | 1,300.00 | 3,930.00 |
26,250.00 | 26,749.99 | 2,547.50 | 1,192.50 | 3,740.00 | 2,680.00 | 1,325.00 | 4,005.00 |
26,750.00 | 27,249.99 | 2,595.00 | 1,215.00 | 3,810.00 | 2,730.00 | 1,350.00 | 4,080.00 |
27,250.00 | 27,749.99 | 2,642.50 | 1,237.50 | 3,880.00 | 2,780.00 | 1,375.00 | 4,155.00 |
27,750.00 | 28,249.99 | 2,690.00 | 1,260.00 | 3,950.00 | 2,830.00 | 1,400.00 | 4,230.00 |
28,250.00 | 28,749.99 | 2,737.50 | 1,282.50 | 4,020.00 | 2,880.00 | 1,425.00 | 4,305.00 |
28,750.00 | 29,249.99 | 2,785.00 | 1,305.00 | 4,090.00 | 2,930.00 | 1,450.00 | 4,380.00 |
29,250.00 | 29,749.99 | 2,832.50 | 1,327.50 | 4,160.00 | 2,980.00 | 1,475.00 | 4,455.00 |
29,750.00 | 30,249.99 | 2,880.00 | 1,350.00 | 4,230.00 | 3,030.00 | 1,500.00 | 4,530.00 |
30,250.00 | 30,749.99 | - | - | - | 3,080.00 | 1,525.00 | 4,605.00 |
30,750.00 | 31,249.99 | - | - | - | 3,130.00 | 1,550.00 | 4,680.00 |
31,250.00 | 31,749.99 | - | - | - | 3,180.00 | 1,575.00 | 4,755.00 |
31,750.00 | 32,249.99 | - | - | - | 3,230.00 | 1,600.00 | 4,830.00 |
32,250.00 | 32,749.99 | - | - | - | 3,280.00 | 1,625.00 | 4,905.00 |
32,750.00 | 33,249.99 | - | - | - | 3,330.00 | 1,650.00 | 4,980.00 |
33,250.00 | 33,749.99 | - | - | - | 3,380.00 | 1,675.00 | 5,055.00 |
33,750.00 | 34,249.99 | - | - | - | 3,430.00 | 1,700.00 | 5,130.00 |
34,250.00 | 34,749.99 | - | - | - | 3,480.00 | 1,725.00 | 5,205.00 |
34,750.00 - OVER | - | - | - | 3,530.00 | 1,750.00 | 5,280.00 | |
Source: KPMG in the Philippines
1 For more on the changes, see Circular 2024-06 at: https://www.sss.gov.ph/wp-content/uploads/2024/12/CI-2024-006-Publication.pdf.
2 For more on the Social Security Act of 2018 (RA 11199), see: https://www.sss.gov.ph/wp-content/uploads/2022/04/Booklet_SS-ACT-OF-2018_05172019_2.pdf.
The information contained in this newsletter was submitted by the KPMG International member firm in the Philippines.
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