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.

Do you have additional information about this post? Share it on the comment box. :)

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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

Do you have additional information about this post? Share it on the comment box. :)

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The SSS has started the production and issuance of the Unified Multi-Purpose Identification (UMID) card, which contains a contactless chip and magnetic stripe that stores information and can be used when transacting with participating government agencies such as SSS, GSIS, Pag-Ibig and PhilHealth. It is intended to enhance transactions and protect the institution from fraud as it uses biometric technology and fingerprint matching to identify the identity of members.

Quaification

An active SSS member with at least one month contribution and SSS pensioners may apply for the new SS ID.

For First Time Application (No UMID/Old SS ID)

Step 1. Fill out and submit an SSS Form E-6 to the nearest SSS branch that has facilities for SS ID capture. You may also download the form below.

Note: When you download the form, print all information in capital letters, use blank ink only, and should be printed back to back.

Step 2. SSS Form E-6 must be submitted together with an original and photocopy of any of the following primary documents:

• Passport
• Professional Regulation Commission (PRC) card
• Seaman's book

In the absence of any of these documents, the applicant may present any two of the following documents, provided at least one document contains the applicant's photograph:

• Driver's license
• Valid National Bureau of Investigation (NBI) clearance
• School or company ID
• Postal ID
• Senior citizen card
• Major credit card
• Voter's ID
• Savings account passbook
• Alien certificate of registration
• Government Service Insurance System (GSIS) member's record
• Certification from the Office of Southern/Northern Cultural Communities or Office of Muslim Affairs
• Taxpayer Identification Number (TIN) card

 NOTE: The new SSS ID card is issued free for first-time applicants.

For Application with Existing Old SS ID
Provide and complete the first two (2) steps above and surrender your existing or old SSS ID. You may also avail of the option to omit the printing of the date of birth on the card.
 

Step 3. Accomplished and submit SSS R-6 Form that will be provided once your membership has been validated. Settle PHP300.00 for card replacement fee on the cashier.

Note: Print and accomplish this form with three (3) copies). Settle PHP300.00 once you have submitted SSS Form E-6 and have it validated.

For Application with Lost or Damaged UMID/Old SS ID
Provide and complete the first two (2) steps above and submit an Affidavit of Loss Form. Once validated, you may proceed with the third step above.

Note: This form should be provided with E-6 form and valid IDs for verification/validation.

For applicants with change or correction of name, SSS E-4 Form indicating request for correction of name should be submitted with other requirements above.

Note: Please see back page of E-4 form for documents required when submitting this form (e.g. NSO Birth Certificate, Marriage Contract, etc.)

When you submit your application, the SSS will immediately obtain your personal data (i.e. your fingerprints, facial image, signature, and personal identification number will be electronically recorded) for transfer to your new ID card. The ID card will be mailed to the address you specified on your Form E-6. If you do not receive your ID within 30 days from the date on which you applied, you may inquire from any SSS branch in your area.

Source: www.sss.gov.ph

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Wondering how much will you get from SSS contribution when you retire? Based from my research, the amount of monthly pension depends on contribution and time. Question is, is this monthly pension enough at the time you retire?

Retirement benefit is a cash benefit either in monthly pension or lump sum paid to a member who can no longer work due to old age.

Qualifications

• A member who is 60 years old, separated form employment or ceased to be self-employed, and has paid at least 120 monthly contributions prior to the semester of retirement. 
• A member who is 65 years old whether employed or not and has paid at least 120 monthly contributions prior to the semester of retirement. 

For Underground Mine workers: 

• Has reached the age of 55 years old and is an underground mine worker for at least 5 years (either continuous or accumulated) prior to the semester of retirement but whose actual date of retirement is not earlier than March 13, 1998; separated from employment or in the case of self-employed, has ceased self-employment, and has paid at least 120 monthly contributions prior to the semester of retirement. 
• Has reached the age of 60 years old whether employed or not. 

Types of Retirement Benefits

Monthly Pension

The monthly pension is a lifetime cash benefit paid to a retiree who has paid at least 120 monthly contributions to the SSS prior to the semester of retirement. 

Lump Sum

The lump sum amount is granted to a retiree who has not paid the required 120 monthly contributions. It is equal to the total contributions paid by the member and by the employer including interest.

In this post, I will be discussing the monthly pension calculation only.

Monthly Pension

Benefit Computation 

The monthly pension depends on the member's paid contributions, his credited years of service (CYS), and the number of his dependent minor children that must not exceed five. The monthly pension will be the highest amount resulting from either one of these three pension formulae:

1. the sum of P300 plus 20 percent of the average monthly salary credit plus two percent of the average monthly salary credit for each credited year of service (CYS) in excess of ten years; or
2. forty (40) percent of the average monthly salary credit; or
3. P1,200, if the CYS is at least 10 but less than 20; or P2,400, if the CYS is 20 or more. 

The monthly pension is paid for not less than 60 months.

A member who retires after age 60 with a total of 120 monthly contributions may be qualified to a monthly pension based on whichever is higher of the following:

• the monthly pension computed at the earliest time the member could have retired had been separated from employment or ceased to be self-employed plus all adjustments thereto; or
• the monthly pension computed at the time when the member actually retires.

A pensioner who retires more than once shall be entitled to the higher of:

• the monthly pension computed for the first retirement claim; or
• the re-computed monthly pension for the new claim

To learn more about SSS Retirement, click here .

Illustration

An employed SSS member with monthly salary of P 30,000.00 and is now 60 years old is eligible to retire after working for 30 years.

Referring to SSS table of contribution, the retiree's contribution is P 581.30 and P 1,208.70 for his employer's contribution. Total contribution of P 1,790.00 per month. This total amount is his average monthly contribution. Thus, his average monthly salary credit (AMSC) falls to P 16,000.00. 

Average total contribution is P 1,790.00 x 30 years x 12 months = P 644,400.00. 

Method 1

Monthly SSS Pension = (AMSC) 20% + (AMSC) 2% for year of service in excess of 10 years + PHP300
Monthly SSS Pension = (P 16,000*20%) + (P 16,000*2%*20 years) + P 300
Monthly SSS Pension = P 3,200 + P 6,400 + P 300
Monthly SSS Pension = P 9,900.00
Method 2

Forty percent (40%) of the average monthly salary credit

Monthly SSS Pension = P 16,000 * 40%
Monthly SSS Pension = P 6,400.00
Method 3

P 1,200, provided that the credited years of service (CYS) is at least 10 or more but less than 20 or P 2,400, if the credited years of service CYS is 20 or more.

Monthly SSS Pension = P 2,400.00 since he has more than 20 credited years of service.

The highest amount among the three methods of computation will be the retiree's monthly pension. Thus, the first computation yields as the highest with P 9,900.00. His monthly pension can be based on this amount.

For him to break-even in his contributions, it will take for at least 5.40 years (65.1 months) to fully benefit from the pension assuming he has not used any of his SSS benefits.

Check out also our online SSS Pension calculator here.

Do you think this amount is enough for your retirement? Share your thoughts on the comment box. :)

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