There are several methods on how to determine the daily rate for monthly-paid employees. This varies depending on the number of working days of an employee.

Assuming an employee has a monthly income of P 20,000.00. His Daily Rate will be:

1. If he is required to work everyday, including Sundays or rest days, special days and regular holidays

Daily Rate = (Monthly Income x 12 months) / factor 393.50 days/year

where factor 393.50 days/year  = A + B + C + D

where A =  298 ordinary working days (365 days/year -12 regular holiday - 52 rest days - 3 special holidays)

         B =  24 regular holidays (12 regular holidays x 200%)

         C =  67.6 rest days (52 rest days x 130%)

         D =  3.90 special days (3 special days x 130%)

Daily Rate = (P 20,000.00 x 12) / 393.50

Daily Rate =  P 609.91

2. If he is not required to work and are not considered paid on Sundays or rest days, special days and regular holidays. This simply means he is working Mondays to Saturdays.

Daily Rate = (Monthly Income x 12 months) / factor 313 days/year

where factor 313 days/year = A + B + C

where A =  298 ordinary working days (365 days/year -12 regular holiday - 52 rest days - 3 special holidays)

          B =  12 regular holidays

          D =  3 special days (if considered paid); if this is actually worked, this is equivalent to 3.9 days  (3 special days x 130%)

Daily Rate = (P 20,000.00 x 12) / 313

Daily Rate =  P 766.77

Factor 310 may be used instead of 313 if the 3 special holidays are not considered paid

3. If he is not required to work and are not considered paid on Saturdays and Sundays or rest days, special days and regular holidays. This simply means he is working Mondays to Fridays.

Daily Rate = (Monthly Income x 12 months) / factor 261 days/year 

where factor 261 days/year  = A + B + C

where A =  246 ordinary working days (365 days/year -12 regular holiday - 52 Saturdays - 52 rest days - 3 special holidays)

         B =  12 regular holidays 

         C =  3 special days (if considered paid); if this is actually worked, this is equivalent to 3.9 days  (3 special days x 130%)

Daily Rate = (P 20,000.00 x 12) / 261

Daily Rate =  P 919.54

Factor 258 may be used instead of 261 if the 3 special holidays are not considered paid

Did you find this post useful? Did you find the correct method your daily rate is computed? Share your thoughts in the comment box!

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For Employed Member

Suppose a member has a monthly income of P 10,000.

Step 1 

Look for the "Range of Compensation" column and find the corresponding range of compensation of the member's monthly salary belongs to. 

Step 2

Head over to the "Total Contribution" and look for "EE" (Employee Contribution) to get your contribution. The corresponding employee's contribution is P 363.30. This is the amount that should be deducted and reflected in your payroll.

The employer, however, has a total contribution of P 746.70. This is from the monthly contribution of P 736.70 plus P 10.00 for the employee compensation program.

Further, the member's total contribution for the month will be P 1,110.00. This is the amount that should be reflected as the member's SSS contribution. 

For Self-Employed, Voluntary Member, and OFW

Suppose a member has a monthly income of P 10,000.

Step 1 

Look for the "Range of Compensation" column and find the corresponding range of compensation of the member's monthly salary belongs to. 

Step 2

Head over to SW/VM/OFW Total Contribution column. The corresponding employee's contribution is P 1,100.00. This is the amount the member will settle as his contribution.

Unlike an employed member, the member under this category will shoulder both the employee and employer's contributions.

Members with no monthly income may choose the amount he wish to pay as his monthly contribution.

Check out our online calculator here.

FAQ

Q. Is e-cola considered in determining SSS contribution?

A. According to SSS, the monthly salary/basic pay is the only basis for determining SSS contribution. 

Q. How about Night Differential, Overtime, and Holiday pays?

A. No. Only basic pay is used. However, some employers practice to use the gross salary (ND, OT and HOLIDAY pay included) in determining the SSS, PhilHealth and Pag-IBIG distribution as this will decrease the amount of employee's withholding tax and at the same time increase the amount of your contribution.

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New to SSS? Got problem understanding the contribution table? This guide will help you understand the purpose and definition of each field/column.

1. Range of Compensation - the range where your monthly salary belongs
2. Monthly Salary Credit - the compensation base for contributions and benefits related to the total earnings for the month
3. Social Security Employer (ER) - Employer's contribution
4. Social Security Employee (EE) - Employee's contribution
5. EC-ER - represents contributions for the Employees’ Compensation Program which is a fund for work-connected injury, sickness, disability and death with cash income benefit, medical, rehabilitation and related services. The EC contribution is solely paid for by the employer
6. Total Contribution - the sum of the employee and employer's contributions. This reflects your total contribution for the month
7. SE/VM/OFW Total Contribution - Self-Employed, Voluntary Member, Overseas Filipino Worker column of contribution

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