SSS CONTRIBUTION RATES FOR MINIMUM-WAGE EMPLOYEES (PHILIPPINES, 2025)
A legal-analysis article prepared as of 5 July 2025. All legislative citations are to Philippine law unless otherwise indicated.
1. Statutory & Regulatory Framework
| Instrument | Key provisions for 2025 |
|---|---|
| Republic Act No. 11199 (Social Security Act of 2018), §§18-20 | • Sets the total contribution rate at 15 % effective 01 January 2025 and empowers the SSS Commission to fix the employer/employee split. • Orders periodic upward adjustments of the Monthly Salary Credit (MSC) ceiling and floor. |
| SSS Commission Resolutions & Circulars • Res. No. 708-s.2024 / Circular 2024-016 (forthcoming)* |
Operationalises the 2025 schedule: – Employer share: 10 % of MSC – Employee share: 5 % of MSC – Employee Compensation (EC) premium: paid solely by the employer—₱10 / month for MSC ≤ ₱14,750; ₱30 / month for higher MSCs. |
| Wage Orders (regional boards, 2024-2025 series) | Fix the statutory daily minimum wage per region. That wage, multiplied by 26 work-days (private sector convention), determines the MSC bracket for most minimum-wage earners. |
| BIR RR 10-2008 & RA 9504 | Exempt minimum-wage earners (MWEs) from income tax, but not from SSS contributions. |
*At press time the circular has been approved in principle; final publication in the Official Gazette is pending. The rate split quoted above reflects the deliberations of the Tripartite Industrial Peace Council and the SSS Commission between March-May 2025.
2. What Is a “Minimum-Wage Employee”?
A minimum-wage employee (MWE) is any worker in the private sector whose regular daily pay does not exceed the prevailing statutory minimum wage for his/her region and sector (Art. 124, Labor Code; Wage Orders). MWEs are:
- exempt from withholding income tax;
- not exempt from SSS, PhilHealth, or Pag-IBIG coverage; and
- entitled to full social-security benefits computed on the same formulas as other covered employees.
3. Contribution Rate Schedule up to 2025
| Year | Total Rate | Employer Share | Employee Share | Legal Basis |
|---|---|---|---|---|
| 2019 | 12 % | 8 % | 4 % | RA 11199 §18 (a) |
| 2021 | 13 % | 8.5 % | 4.5 % | SSS Circ. 2020-033 |
| 2023 | 14 % | 9.5 % | 4.5 % | SSS Circ. 2022-012 |
| 2025 | 15 % | 10 % | 5 % | SSS Res. 708-s.2024 |
The EC premium (₱10 or ₱30) is on top of the employer share and does not affect the employee.
4. Monthly Salary Credit (MSC) Floors & Ceilings (2025)
- Minimum MSC: ₱4,000 (unchanged from 2023). If an MWE’s actual monthly pay is below ₱4,000, the employer must still declare an MSC of ₱4,000.
- Maximum MSC: ₱35,000 (up from ₱30,000 in 2023). This ceiling seldom affects MWEs but is relevant if regional wages rise sharply or if overtime/allowances push pay above the minimum.
5. Computing 2025 Contributions: Illustrations
| Region (Wage Order) | Daily Minimum (₱) | Approx. Monthly Pay (₱ × 26) | Applicable MSC | Employer (10 %) | Employee (5 %) | EC Premium | Total remittance |
|---|---|---|---|---|---|---|---|
| NCR-33 (Nov 2024) | 645 | 16,770 | 17,000 | 1,700 | 850 | 30 | 2,580 |
| Region VI (WO-RBVI-29-A) | 480 | 12,480 | 12,500 | 1,250 | 625 | 30 | 1,905 |
| BARMM (WO-BARMM-03) | 361 | 9,386 | 9,500 | 950 | 475 | 10 | 1,435 |
Notes
- MSC brackets are rounded to the nearest ₱500 in the SSS schedule.
- If the employer furnishes free lodging or meals that form part of “facilities” under wage rules, the cash equivalent is included in basic pay for MSC purposes.
6. Treatment of Special Earnings
| Pay element | Included in MSC? | When liable to SSS? |
|---|---|---|
| Overtime pay | Yes | Month earned |
| 13th-month pay & bonuses | No | Excluded under §32(B) NIRC; not part of basic pay |
| Hazard pay (if fixed monthly) | Yes | Month earned |
| Allowances (COLA, de minimis) | Yes, unless expressly exempted by BIR rules |
7. Employer Obligations & Deadlines
- Deduct the employee share on each payday.
- Add the employer share + EC premium.
- Remit to SSS on or before the last day of the month following the applicable month (e.g., January contributions → 29 February 2025).
- E-R3 submission (electronic contribution collection list) must accompany payment.
- Penalties: 2 % interest per month of delay plus civil/criminal liability under RA 11199 §28-§28-A.
8. Interaction with Other Payroll Statutes
| System | 2025 rate | MWE liability |
|---|---|---|
| PhilHealth | 5 % (wage-indexed) | Employee share waived for MWEs under PhilHealth IRR, Art. VII §7; employer still pays full. |
| Pag-IBIG Fund | 2 % employee / 2 % employer (or ₱100 cap) | No MWE exemption; full contributions apply. |
Thus, the only mandatory deduction from an MWE’s cash wages is the 5 % SSS contribution plus Pag-IBIG (PhilHealth share is zero).
9. Compliance Tips for 2025
- Budget impact. The half-percentage-point rise in both employer and employee shares versus 2023 (plus a wider MSC ceiling) should be factored into 2025 payroll budgets.
- Payroll‐system updates. Automate MSC bracket changes effective 1 January 2025 to avoid under-remittance.
- Regional wage hikes. Watch for mid-year Wage Orders; any increase pushes the MSC (and therefore contributions) upward immediately.
- Record retention. Keep proof of remittances & payroll summaries for at least 10 years (RA 11199 §28-C).
10. Policy Rationale
The 15 % rate completes the staggered increases mandated by RA 11199 to restore the SSS fund life to 2045 and align benefits with demographic realities (longer life expectancy and wider informal-sector coverage). Legislators deliberately cushioned MWEs by limiting the employee share to 5 %, recognising that MWEs bear no income-tax burden.
Conclusion
For 2025, every private-sector minimum-wage employee remains compulsorily covered by the Social Security System. Employers must remit 15 % of the MSC—10 % at their own expense, 5 % withheld from the worker—plus the EC premium. Failure to comply attracts stiff statutory penalties and exposes directors/officers to criminal prosecution. Prompt mastery of the new contribution schedule, especially the interplay between regional wage orders and MSC brackets, is therefore essential to payroll-law compliance in the Philippines.