What Is The SSS Deduction For In My Payslip? Your Retirement Fund, That’s What

What Is The SSS Deduction For In My Payslip? Your Retirement Fund, That’s What
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Fact: We work to earn. It’s a bonus if you find a job that you truly enjoy or one that gives you fulfillment, but many of us keep a job so we can save up enough money to afford a home, a car, vacations, and other indulgences. However, there is one thing we almost always forget to save up for: our retirement.

As a working adult, saving money is certainly in our plans -- sometimes we don’t exactly know the ‘when’ and ‘how’ – and admittedly, there are times that we spend on things that we shouldn’t, especially if you just started earning your own money.

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If you are an employed individual, the good news is that there might be a bit of cash – a fund – you can rely on in your older years. On your pay slip, you’ll notice a deduction that is paid out to the Social Security System. Accumulated, this serves as an insurance so you could claim your health benefits (sickness, maternity, disability) when you need it and your retirement fund in the future. But when can you actually avail yourself the SSS Retirement Benefit?

Here are the qualifying conditions as stated on the SSS official website:

You must:

  • have paid a total of 120 monthly contributions or more prior to the semester of your retirement.
  • be at least 60 years old and separated from employment for an optional retirement. You should no longer be self-employed, or an OFW, or a household helper by this age (The age limit is 55 years old for underground mineworkers).
  • be at least 65 years old for a technical retirement. You can still be employed, self-employed, an OFW, or a household helper by this age (The age limit is 60 years old for underground mineworkers).

You may also enjoy your Retirement Benefit from SSS if you are:

  • a total disability pensioner, at least 60 years of age (55 years old for underground mineworker), who recovered from a disability. 
  • a member who already completed 120 months of contribution and are 60 years old or above. You can avail yourself a higher benefit by paying continuously as a voluntary member until the age of 65.
  • a former retiree-pensioner who is no longer employed or self-employed and whose monthly pension was suspended due to previous re-employment/self-employment.


Why should you start planning your retirement pension now?

If you are currently in your 20s or 30s, then you might not actually be thinking of retirement because you are still a couple of decades away from it. But just so you have a better appreciation of the SSS deductions from your monthly salary, heed what these pensioners have to say.

Eddie, who has been receiving his retirement pension for 16 years now, suggests, “Dapat hangga’t wala pa kayong masyadong gastos sa buhay at hanggang kayo ay bata pa [ay] magsimula na kayong mag-ipon. Tulad ngayon, malaking tulong ito sa mga gastusin sa araw-araw dahil sa krisis na dulot ng COVID-19 na hindi naman inasahan ng lahat na mangyayari ngayong taon.”

Pre-pandemic, Flory was enjoying her senior life because she could go to cinemas and eat out to try different restaurants with the help of her pension. She started her monthly contribution in 1980 and has been receiving an SSS pension for 9 years now. She recommends, “For new employees, you [should] start contributing now while you are young, so you can enjoy [the] benefits in the future. Mahirap maghanap ng trahabo at magtrabaho kapag ikaw ay may edad na.”

“Maigi talagang mag-ipon ka na [habang] bata ka pa lang dahil wala ka pang masyadong gastusin. Kapag nagkaroon ka na ng sarili mong pamilya, mahihirapan ka nang magtabi ng pera dahil may ibang bagay kang kailangang paglaanan,” says Elizabeth, who is her late husband’s primary SSS beneficiary.


What is new with the SSS Pension Program?


In January 2021, the SSS launched a new contribution schedule and Worker’s Investment and Savings Program (WISP) to help its members build up a more secure retirement fund for their future.

“It allows faster accumulation of a worker’s savings because of the employer share in the contribution. Moreover, WISP contributions will be invested following the principles of safety, high yield, and liquidity, and as provided under the SS Act of 2018, which will yield additional pension income for contributing members,” SSS President and Chief Executive Officer Aurora Ignacio said about the WISP. 

If you are an SSS member with a Monthly Salary Credit (MSC) of more than Php 20,000, you will automatically be enrolled in the new program. Some changes that will take effect upon its implementation include a one-percent hike from 12 % to 13 %, in your total monthly contribution (the employee share will be at 4.5% and the remaining 8.5% will be the employer’s share).

An adjustment on the MSC was also made, from the minimum Php 2,000 to Php 3,000, and a maximum of Php 25,000 from the previous Php 20,000.

To illustrate: If your monthly salary is Php 25,000, then your WISP fund is Php 650 based on the new schedule of contributions. The Employer Contribution or ER is Php 425, while the Employee Contribution or EE is Php 225.

Meanwhile, the remaining Php 2,600 of the total monthly contribution, or Php 3,250, will be remitted to your regular social security fund. You can refer to the table below.

If you are self-employed, on the other hand, you will have to remit your SSS contributions voluntarily. Check the schedule of contributions for self-employed individuals here.

For more information, visit the Social Security System Facebook page.
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