BUSINESS MATHEMATICS

SOCIAL SECURITY SYSTEM (SSS)

A Written Report Presented to

Senior High School Department
Senator Renato “Compañero” Cayetano
Memorial Science and Technology High School
Taguig City

In Partial Fulfillment
of the Requirements for the Strand
Accountancy, Business, and Management
of Academic Track

Submitted for:
RIBANO, PATRICK B.

January 16, 2022

 PREFACE

As the group seven (07) gave their time and effort to finish this task, we are very glad to
share and present this project. Working together as one consists of three hard working
members: BERDERA, Shane R., GABRIDO, Tehillah Grace T., and LACRETE, Sherwin B. The
students gave their best in providing the important and appropriate details regarding the given
topic.
In this Project, the three students made sure that the content of the report is easy to
understand. The given topic and its sub sectors are well explained which can help in enhancing
the depth of learning.
We are grateful to our Business Mathematics teacher, Sir Patrick Ribano, for supporting and
guiding us throughout the process. He also corrected and suggested some improvements on
how we should deal with the encountered problems regarding this report. If it weren’t because
of Sir Patrick’s given task, we wouldn’t have the chance to brainstorm and gather useful
information as a team to improve and address such problems.
As students of Accountancy and Business Management, we sincerely hope that this project
will be helpful for students seeking help in such a topic. Rest-assured that all the information
came from reliable books, sites and other resources, and can be used to any academic
purposes thereof;

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 TABLE OF CONTENTS

SOCIAL SECURITY SYSTEM (SSS) i

PREFACE ii
TABLE OF CONTENTS iii
SOCIAL SECURITY SYSTEM 1
Background 1
The Purpose 1
The Scope 1
What is the Social Security System? 2
The SSS Mandate 2
Who Can Pay SSS Contributions? 2
What are Contribution Tables 3
Parts of a Contribution Table 3
Types of Contribution Table 5
Benefits 8
Sickness 9
Maternity 11
Disability 12
Retirement 13
Lump Sum Amount 13
How to Compute Pension? 14
Funeral 16
Unemployment 17
SUMMARY 18
BIBLIOGRAPHY 19
AUTHORS’ REFLECTIONS 20

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 SOCIAL SECURITY SYSTEM
Berdera, Shane R.
Gabrido, Tehillah Grace T.
Lacrete, Sherwin B.

Background
The Social Security System plays a very prominent role in the Philippines, especially for the
people who spend most of their lives working to sustain their family’s needs. Filipinos would
always say that earning money is a must-do technique to save some amount deducted to a
worker’s salary so that in case of emergency such as sickness, death and retirement etc. a
worker has some money to spend from their own earnings.
We have a Government Service Insurance System (GSIS) for all government workers
irrespective of their employment status, wherein GSIS offers many benefits to its respective
members, how about the workers under private institutions? That is why SSS was established.
To address the long-range problem of economic security for the aged through a contributory
system.
This report aims to discuss more about the Social Security System. For the future purposes
this may serve, this written report can be used for additional understanding not only for the
Group Seven (7) but also for the ABM Students and SSS Members.

The Purpose
This Report has the following objectives:
1) To identify the meaning of SSS and what it is all about.
2) To know the importance of SSS.
3) To elaborate the five (5) contribution tables and to know who are qualified to be
contributors or members of SSS.
4) To give some examples and real-life situations involving the SSS contribution tables.
5) To define, elaborate and cite some examples of SSS Benefits.
6) To allow Berdera, Gabrido and Lacrete to learn and share their experiences in writing this
report.

The Scope
Group Seven (07) Consists of Berdera, Gabrido and Lacrete students under the Accountancy
and Business Management strand of Senator Renato “Compañero” Cayetano Memorial Science
and Technology High School (SRCCMSTHS), this report has been done for the fulfillment of
the requirements under Mr. Patrick Ribano’s class, Business Mathematics from January 05,
2022 - January 16, 2022.
This report will serve as a requirement, at the same time as an additional learning for everyone
that is confused regarding the topic Social Security System (SSS). This will also serve for
rendering and improving each and everyone’s understanding especially the ABM Students.

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This study has no limit when it comes to its readers. It can be for the professionals who are
planning to apply for an SSS membership and it can also be for the ABM students that are
confused in regards to the topic. The report was conducted with the use of reliable resources
and knowledge from the teacher. Berdera, Gabrido, and Lacrete also made this report for their
additional experiences so that they can apply it in real life situations as future individuals
involved in the business industry. This report can be used for Business Mathematics Class and
any valid reasons thereof.

What is the Social Security System?

The Social Security System is a state-run, social insurance program in the Philippines to
workers in private, professional and informal sectors. SSS is established by virtue of the
republic act no. 1161 or we know as the social security act of 1954.

Fig. 1 Social Security System Branch

The SSS Mandate

The Mission of the Social Security System is “to manage a financially stable social security
system which shall promote social justice through savings, and provide meaningful protection
and exemplary service to members and their families.”
The Vision of the Social Security System is to have “a viable social security institution providing
universal and equitable social protection through world-class service.”
The Statement of Corporate Values of the Social Security System “aims to institutionalize a
corporate culture that instills the core values of Trust, Empowerment, and Teamwork.”

Who can pay SSS Contributions?

Before we begin covering what Contribution Tables are, we must first know who can pay the
SSS contributions so that we can further understand how the contribution tables work.
To begin or continue their coverage, Employees, Self-employed people, Non-working spouses,
and OFWs who are aged 60 and below, so long as they have an existing SSS Number, can
pay their SSS Contribution.

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Unemployed individuals can also pay for an SSS contribution as a voluntary member, but only
if they were previously covered as an employed, self-employed, or OFW member with at least
one-month contribution.
Voluntary membership is only for SSS members who are previously employed, self-employed,
OFW, or non-working spouse and currently unemployed. This means voluntary members can
only pay the contribution to continue their SSS coverage after they get separated from
employment.

What are Contribution Tables?

Every month, SSS members pay their contributions, and these monthly contributions are
computed based on a members’ salary bracket which depends on whether you are Employed,
Self-Employed, a Voluntary Member, a Non-Working Spouse, or an Overseas Filipino Worker
(OFW).
Although the SSS website hasn’t officially released the 2022 contribution table (as of writing
this written report) the Republic Act No. 11199, or otherwise known as the Social Security Act
of 2018, stated that the contribution rate will rise by 1% every other year until it reaches 15%
by 2025.
Since 2019 the contribution rate was 12%, in 2020 it stayed the same at 12%. Then a year
later the contribution rate increased by 1%, so it is safe to assume that for the year of 2022,
the contribution table for 2021 will be the same as for this year because it would stay the
same for one more year until it increases. Meaning, the next increase would be in 2023 by
logic.
The minimum Monthly Salary Credit (MSC) has also been increased from Php 2,000 to Php
3,000 for the Employed, Self-Employed, Voluntary Members and Non-Working Spouse
members. The Monthly Salary Credit of those who work as Kasambahays, and OFWs shall
remain the same at Php 1,000 and Php 8,000 respectively.
Then of course, the maximum Monthly Salary Credit (MSC) will be raised as well, from Php
20,000 to Php 25,000.

Parts of a Contribution Table

To better understand the Contribution Table, we will go over the different columns of the
Contribution Table as seen below. This is from the Regular Employers and Employees
Contribution Table.

Fig. 2 Contribution Table Columns

First is the Range of Compensation. There is not much to say about this, but this is the range
of your salary.
Second is the Monthly Salary Credit. This will be the base for the contributions and benefits
related to the member's total earnings for the month, as indicated in the schedule in Section
18 of the SS Law.

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 For example, an employee is earning a salary of Php
6,500. We just have to find the salary bracket that
includes 6,500. So in the table at the left, we will see that
the salary is included in the salary bracket 6,250 -
6,749.99. Beside the Range of Compensation is the
Monthly Salary Credit, so we will see that the MSC of an
employee with a salary of Php 6,500 is Php 6,500.

Fig. 3 Range of Compensation & Monthly

Salary Credit columns Now let us move on to the Amount of Contributions
columns which have four different sub-columns. In the
Regular Social Security column, it is also divided into sub-columns which are the ER, EE, and
the Total column. The ER column is the Employer’s contribution, while the EE column is the
Employee’s contribution. The total is the sum of the ER and EE contribution.
And then we have the Employees’ Compensation column which is divided into three sub-
columns which are the ER, EE, and the Total column. The Employers will have to pay the
additional monthly contribution for the Employees’ Compensation (EC) Program, which is Php
10 per employee earning below Php 15,000 or Php 30 per employee earning Php 15,000 and
above. In other contribution tables, some members won’t have to pay the additional monthly
contribution for the Employees’ Compensation (EC) Program.
Lastly, the Total column. This will be the amount that a member would pay for their monthly
contribution.
As we have said a while back in this written report, the contribution rate for 2022 will be 13%
which is the same as for the year of 2021. The Employee pays 4.5% of the Monthly Salary
Credit while the Employer shoulders the remaining 8.5% which totals 13%. To have a better
understanding of how the share between employers and employees work, here is an example:
Shane has a salary of Php 18,350 and according to the table, her Monthly Salary Credit (MSC)
will be Php 18,500. We will base our computation on her Monthly Salary Credit (MSC), so the
employer will pay 8.5% of 18,500 while the employee will pay 4.5% of 18,500. 18,500 x 0.085
is Php 1572.50, and 18,500 x 0.045 is Php 832.50. But the employer would also have to pay
for the Employees’ Compensation (EC) Program, which is Php 30.00 because Shane’s MSC is
above Php 15,000. Add all of that, the Employer would have to pay Php 1602.50 and then
Shane would have to pay Php 832.50, which totals in a Monthly Contribution of Php 2,435.00.
To better visualize the computation:

Fig. 4 Row of the Php 18,500 Monthly Salary Credit of Shane

Aside from the Regular contribution, members with MSC of over Php 20,000 are now also
required to pay for a new provident fund called Workers’ Investment & Savings Program or
WISP. The WISP is a tax-free retirement savings plan which will serve as a supplement to
your SSS pension benefits. Employees in the private sector are qualified for WISP but
government employees are exempted and therefore won’t have salary deductions for WISP.
The additional for the WISP or the Mandatory Provident fund will start at Php 500, gradually
increasing up until Php 5,000 for those with a salary of Php 24,750 and above.
To have a better understanding of how the share between employers and employees with an
MSC of over Php 20,000, here is an example:

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Tehillah earns a Php 30,000 salary, therefore she has a Php 25,000 MSC and a Php 5,000 MDF
because she reached the limit of the Range of Compensation, meaning she has the highest
MDF. The employer will pay 8.5% of the MDF which is Php 425.00, and the employee will
have to pay 4.5% of the MDF which is Php 225.00, which totals in Php 650.00. The MDF will
then be added to the Total from the Regular Contribution and the additional Php 30.00 which
is Php 2630.00. So, Php 650.00 + Php 2630.00, totals in a Monthly contribution of Php
3,280.00. To better visualize the computation:

Fig. 5 Row of the Php 25,000 Monthly Salary Credit of Tehillah

Types of Contribution Tables

There are different types of Contribution Tables according to membership, and the first table
that we will discuss will be the Regular Employer and Employee Table.
The table that we used for the previous sub-topic was actually the Regular Employer and
Employee Contribution Table, so for the reader to have a better understanding of this table,
we will give another sample problem:
Tehillah hired an accountant for her company. She hired Sherwin for a salary of Php 21,350.
What will be their total Monthly Contribution?
First, we find which bracket Sherwin’s salary belongs in the Range of Compensation column.
Since his salary fits in the 21,250 - 21,749.99, he has a Regular Contribution of Php 20,000
and the Php 1500 Mandatory Provident Fund. Once we have known the MSC and MDF, we
can compute the monthly contribution of both the Employer and Employee.
For Tehillah; the Employer, compute for the Monthly Contribution. First, get the total
contribution for the MSC as your base. 20,000 * 0.085 = Php 1,700.00 plus the additional Php
30.00 for the EC Program, which totals in Php 1,730.00. Then, we get the total contribution
for the MDF as your base. 1,500 * 0.085 = Php 127.50. Lastly, we add the products we got
to get the Total Monthly Contribution. Php 1,730.00 + Php 127.50 = Php 1,857.50.
For Sherwin; the Employee, compute for the Monthly Contribution. First, get the total
contribution for the MSC as your base. 20,000 * 0.045 = Php 900.00. Then, we get the total
contribution for the MDF as your base. 1,500 * 0.045 = Php 67.50. Lastly, we add the products
we got to get the Total Monthly Contribution. Php 900.00 + Php 67.50 = Php 967.50.
Then we add the sum we got from both the Employer and Employee. Php 1,857.50 + Php
967.50 = Php 2,825.00. Therefore, Tehillah and Sherwin will both pay Php 2,825.00 overall.
To visualize the computation:

Fig. 6 Row of the Php 21,500 Monthly Salary Credit of Sherwin

The next
Contribution table is for the Self-Employed members. There really is not much of a difference
from this table to the last, the only difference is that the employee will pay all 13% of the
contribution since they aren’t employed by anyone but themselves. This means that if they’re
MSC is above Php 20,000, they will also pay 13% of the Monthly Provident Fund, and they
will also have to pay the additional for the EC Program whether it be Php 10.00 or Php 30.00.

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To have a better understanding of how a Self-Employed member pays their monthly
contribution, here is a sample problem:
Shane is a Self-Employed member of SSS with a monthly salary of Php 20,500, find out her
Monthly Contribution.
Shane’s salary fits in the 20,250 - 20,749.99 salary bracket. This means that she has a Regular
Contribution of Php 20,000.00 and a Mandatory Provident Fund of Php 500.00. Now that we
have the important details, we can compute the Monthly Contribution.
First, get the total contribution for the MSC as your base. 20,000 * 0.13 = Php 2,600 plus the
additional Php 30.00 for the EC Program, which totals in Php 2,630.00. Then, we get the total
contribution for the MDF as your base. 500 * 0.13 = Php 65.00. Lastly, we add the products
we got to get the Total Monthly Contribution. Php 2,630.00 + Php 65.00 = Php 2,695.00.
Therefore, Shane will pay Php 2,695.00 overall. To visualize the computation:

Fig. 7 Row of the Php 20,500 Monthly Salary Credit of Shane

The next Contribution Table is for the Voluntary members and Non-Working Spouse. The
difference of this contribution table to the other tables is that, they won’t be paying for the
EC contribution, but they will pay the Mandatory Provident Fund in full. This contribution table
is very tricky because in the case of the Voluntary Members, their income is not fixed therefore
it is hard to know what their SSS contribution for the month will be. To have a better
understanding of how voluntary members pay their Monthly Contribution, here is an example:
Suppose a voluntary member has received Php 19,850 for their voluntary work for the month
of July, how much will their contribution be in July?
The member’s salary belongs in the 19,750 - 20,249.99 salary bracket. This means that they
have a MSC of Php 20,000.00. Now that we have the important details, we can compute the
Monthly Contribution.
Get the total contribution for the MSC. 20,000 * 0.13 = Php 2,600. The volunteer won’t have
to pay for the EC contribution, therefore, they will pay Php 2,600 for the month of July. To
visualize the computation:

Fig. 8 Row of the Php 20,000 Monthly Salary Credit of the Volunteer

The computation for the Non-Working spouses are very confusing too, but basically, a non-
working spouse’s monthly contribution will be based on 50% of their working spouse’s Monthly

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Salary Credit. We will better understand how the computation for the Non-Working spouse
works with an example:
Troy will go and pay for their SSS monthly contribution as a Non-Working husband for Ian.
Ian has a salary of Php 35,000. Find out how much Troy will pay.
First, we determine which salary bracket Ian’s salary belongs to. Since it is above the
maximum MSC which is Php 25,000, this means that Ian’s Monthly Salary Credit will be Php
25,000.
Then we divide Ian’s MSC by half, and determine how much Troy’s monthly contribution will
be. Php 25,000 / 2 = Php 12,500.00. After getting half of Ian’s MSC multiply it by 13% or
0.13, since Non-Working spouses don’t have an employer. Php 12,500 * 0.13 = Php 1,625.00.
Therefore, Troy will pay Php 1,625.00 as a Non-Working husband. To visualize the
computation:

Fig. 9 Row of the Php 12,500 Monthly Salary Credit of the Non-Working Husband

The next contribution table is for the Household Employers and Kasambahay. For this table,
the minimum Monthly Salary Credit decreased to Php 1,000 unlike for the other tables. House
helpers with below Php 5,000 monthly salary won’t have to pay for their monthly contribution
because the Kasambahay law requires the Household employer to pay the full monthly
contribution instead. But if the Kasambahay member has a salary of Php 5,000, then they will
have to pay their part in the contribution which is 4.5% of the MSC or the MDF. Here is an
example of a situation where the kasambahay has a Monthly Salary of below Php 5,000:
Marco is a kasambahay who has a monthly salary of Php 2,500. How much will his employer
pay for the Monthly Contribution?
Since Marco’s monthly salary is below Php 5,000 he won’t be paying for the Monthly
Contribution and instead will be paid by his employer. First find which salary bracket Marco’s
salary belongs to. It belongs to the 2,250 - 2,749.99 range of compensation, so his Monthly
Salary Credit would be Php 2,500.
Since the employer will shoulder all of the contribution, Php 2,500 * 0.13 = Php 325.00, plus
the additional Php 10.00 for the EC contribution, we will have Php 335.00. Therefore, the
household employer will pay Php 335.00 on behalf of Marco. To visualize the computation:

Fig. 10 Row of the Php 2,500 Monthly Salary Credit of Marco

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The last contribution table is for the Overseas Filipino Workers (OFWs). The difference of
this table from the other tables is that the minimum MSC has been increased to Php 8,000.
OFW members won’t have to pay for the EC contribution as well, but they have to pay for
the Monthly Contribution in full. To have a better understanding for how OFWs pay their
contributions, here is an example:
Vivi is an OFW working in Korea. Her job pays her Php 28,500 every month. Determine her
Monthly Contribution.
Since her salary exceeds the maximum Monthly Salary Credit, we can safely assume that her
Regular Contribution will be Php 20,000 and her Mandatory Provident Fund will be Php
5,000.
First, get the total contribution for the MSC as your base. 20,000 * 0.13 = Php 2,600. Then,
we get the total contribution for the MDF as your base. 5000 * 0.13 = Php 650.00. Lastly, we
add the products we got to get the Total Monthly Contribution. Php 2,600.00 + Php 650.00 =
Php 3,250.00. Therefore, Vivi will pay Php 3,250.00 overall. To visualize the computation:

Fig. 11 Row of the Php 25,000 Monthly Salary Credit of Vivi

Benefits
The Social Security System also provides benefits for its members, but before enumerating
and explaining it thoroughly, let us first discover the nature of the benefits SSS can offer.
Covered employees are entitled to a package of benefits under the Social Security and
Employees' Compensation (EC) Programs in the event of death, disability, sickness, maternity,
and old age. Self-employed and voluntary members also get the same benefits as covered
employees, except those benefits under the EC program.
Basically, the SSS provides for a replacement of income lost on account of the contingencies.
The benefits under the Social Security Program are:
Ø Sickness
Ø Maternity
Ø Retirement
Ø Disability
Ø Death
Ø Funeral
Ø Unemployment

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Sickness Benefit

A daily cash allowance paid for the number of days a member is unable to work due to sickness
or injury.

CONDITIONS

1. The member is unable to work due to sickness or injury and is confined either in a
hospital or at home for at least four (4) days.
2. They have paid at least three (3) months of contributions within the 12-month period
immediately before the semester of sickness or injury.
3. They have used up all company sick leave with pay for the current year and has duly
notified their employer.
4. They must notify the SSS directly by filling a sickness benefit application if they are
separated from employment, a self-employed or a voluntary member, including
overseas Filipino worker (OFW)-member.

AMOUNT OF BENEFIT

 The sickness benefit Is granted up to a maximum of 120 days in one (1) calendar year
 The amount of the member’s daily sickness benefit allowance is equivalent to ninety
percent (90%) of his/her average daily salary credit.

SAMPLE COMPUTATION:

Formula: TSMC / 180 = ADSC

ADS * 90% = DSA

DSA * Approved number of days = Total Sickness Benefit

For example: Lea got diagnosed with cancer and has been confined since March 3 up to
March 31, 2021.

Approved number of sick days: March 01, 2021, to March 30, 2021

Total # of sick days: 30 days

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So first we will just need to make a format to know Lea’s semester of contingency in quarter
and per year form; for better understanding here is the example given:

2019 2020 2021

Since the approved days of being sick falls in
January January January March, exclude the month of march from the
February February February
format
March March March

April April April

May May May
June June June

July July July

August August August
September September September

October October October

November November November
December December December

Fig. 12 Format for Lea’s semester of contingency

2019 2020 2021

It is important to note that the computation is
January January January backward which means that in computation, the
February February February
contributions from the month of October 2020
March March March
until March 2021 will result in making the earlier
April April April 12 months highlighted in gray in our format, be
May May May the only months covered of your SSS benefit
June June June computation
July July July Hence, the only months we will include for the
August August August
September September September actual computation are the months from October
2019 up to September 2020.
October October October
November November November Next is to check your SSS Monthly Salary Credit
December December December that we will include to the computation of our
sickness benefit.

For example, in January 2021 your contribution

Fig. 13 Format for Lea’s semester of contingency with
the highlighted months is Php 2175.00, so using the contribution table
you will check where your contribution amounts.
Php 2,175.00 falls on the total column of contribution. Upon checking Php 2,175 has the
monthly salary credit of Php 16,500.

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So, after you have checked all the amounts of your contributions for the month involved in
our computation, list them now.
2019 2020 NC – means no contribution for this month
January January – 15,000 After which, just get the 6 highest paid
February February – 14,500
contributions from the amounts that were listed
March March – 14,000
earlier.
April April – 17,000
May May – 16,000 Note: The amount that was highlighted in yellow
June June – 15,000 are the top 6 highest contributions of Lea prior to
the month she got sick.
July July – 14,000
August August – 13,000
Next, is to add all the 6 contributions using the
September September – 13,000
given formula earlier.
October - NC October
November - NC November 15,000 + 14,500 + 14000 + 17,000 + 16,000 +
December – 10,000 December 15,000

Fig. 14 Format for Lea’s semester of contingency with Total Monthly Salary Credit: 91,500 / 180 = Php
the highlighted months and top 6 contributions 508.33

508.33 * 0.90 = 457.497. Then, 457.497 * 30 days = Php 13,724.91. Therefore, Lea will
receive Php 13,724.91 for her SSS Sickness Benefit.

Maternity Benefit
A daily cash allowance granted to a female member who is unable to work due to child birth
or miscarriage.
CONDITIONS

1. The member has paid at least three (3) monthly contributions in the 12- month period
immediately preceding the semester of childbirth, miscarriage, or emergency
termination of pregnancy

2. If employed, she must have notified her employer of her pregnancy and the probable
date of her childbirth. Notice of which shall be transmitted to the SSS in accordance
with the rules and regulation it may provide.

3. She must directly notify the SSS if she is unemployed, a self -employed or voluntary
member, non-working spouse, including OFW-member.
AMOUNT OF BENEFIT

 The amount of daily cash allowance is equivalent to 100% of the member’s ADSC for
a compensable period of 105 days for normal or caesarean section delivery, 120 days
for solo parents under R.A. 8972, 60 days for miscarriage or emergency termination
of pregnancy including stillbirth
 The maternity benefit is granted regardless of member’s civil status and frequency of
pregnancy.

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SAMPLE COMPUTATION:
Basically, the computation of the maternity benefit is similar with the sickness benefit, there
are just minimal changes in the formula used because of 120, and 105 days. So, for better
understanding here is an example of computation for maternity Benefit.
Formula (For either normal or caesarean delivery): TMSC * 180 = ADSC
ADSC * 105 days = Total Maternity Benefit
Kate gave birth to her first child last Jan 2020 as a good contributor-member of the Social
Security System she is aware that she can claim her Maternity benefit. The Problem is how
much money will she receive in regards to the benefit?
Date of Delivery: Jan 2020
Normal delivery: 105 days
Just follow the process we did on the sickness benefits, for better understanding here is the
example:
2018 2019 2020 This is to note that the amount next to
the month referring to the source above
January January – 20,000 January
February February – 20,000 February is the monthly salary credit depending
March March – 20,000 March on your monthly contribution. (for more
explanation please refer to the process
April April – 17,000 April did on the sickness benefit)
May May – 16,000 May
June June – 20,000 June Next is to get Kate’s top 6 highest
monthly salary credit then add all of
July July – 14,000 July
them to get the Total MSC
August August – 13,000 August
September September – 13,000 September
Note: The numbers that are highlighted
in yellow are the top 6 highest MSC of
October – 20,000 October October
November – 18,000 November November Kate.
December – 19,000 December December
TOTAL MSC = 20,000 + 20,000 +
20,000 + 20,000 + 20,000 + 19,000 =
Fig. 15 Format for Kate’s semester of contingency with the
highlighted months and top 6 contributions Php 119,000
119,000 / 180 = 661
661 * 105 days (Normal delivery) = 69,405
Therefore, Kate will receive the amount of Php 69,405 for her maternity (normal delivery)
benefit from the Social Security System (SSS).
Disability Benefit
A cash benefit granted, either as a monthly pension or a lump sum amount, to a member who
becomes permanently disabled, either partially or totally.
CONDITION

1. The member has paid at least one (1) month contribution before the semester of
disability.

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 2. To qualify for a monthly disability pension, they must have paid at least 36 monthly
contributions prior to the semester of disability

3. If with less than 36 monthly contributions, they are granted a lump sum amount.
AMOUNT OF BENEFIT

 The minimum monthly disability pension is 1000 if the member has less than ten (10)
credited year of service (CYS)

 1200 if with at least 10 credited years of service

 2400 if with at least 20 credited years of service

 If a qualified member is granted a monthly Disability Pension, plus 500 monthly

supplemental allowance.

 13 month pension - payable every December to total disability pensioners; for partial
th

disability pensioners, 13 month pension shall be if pension duration is at least 12

th

months.

RETIREMENT BENEFIT
Types of retirement benefits
Monthly pension – a lifetime cash benefit paid to a retiree on a regular basis.
Lump sum amount – one-time payment granted to a retiree. The amount is equal to the total
contributions paid by the member and/or by their ERs, including interest earned.
CONDITIONS:
Member must have paid at least 120 monthly contributions prior to the semester of retirement
and is any of the following, whichever is applicable:

1. At least 60 years old and separated from employment or has ceased to be an

SE/OFW/Household Helper (optional retirement);

2. At least 65 years old whether still employed/SE, working as OFW/Household Helper or

not (technical retirement);

3. At least 55 years old and separated from employment or has ceased to be an SE, if an
“underground mine worker” (optional retirement);

4. At least 60 years old whether still employed/SE or not, if an “underground mine

worker” (technical retirement); or

5. A total disability pensioner who has recovered from disability and is at least 60 years
old (or at least 55 years old, if an underground mine worker).

LUMP SUM AMOUNT

Members are at least 60 years old (or 55 years old, if an underground mine worker) for
optional retirement, or 65 years old (or 60 years old, if an underground mine worker) for
technical retirement, and have paid less than 120 monthly contributions. A member filing for
retirement benefit and has paid less than 120 monthly contributions shall be given the option

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to continue paying the contributions as a VM to complete the 120 months to avail the full
benefits thru monthly pension.
AMOUNT OF BENEFIT

 If qualified, the member is granted a monthly Retirement Pension, plus a 13 month

th

Pension payable every December

 If the member has dependent minor children, they are entitled to receive a
dependent’s pension equivalent to 10% of the member’s basic monthly pension, or
P250, whichever is higher. Only five (5) dependent or minor children, beginning from
the youngest, are entitled to a dependent's pension. No substitution is allowed.

 The minimum monthly retirement pension is 1200 if the member has a 120-month
contribution or at least ten (10) CYS; or 2400 if with at least 20 CYS.
SAMPLE COMPUTATION:
There are 2 factors that we need to consider when computing your pension:

1. AMSC - Average Monthly Salary Credit. There are 2 ways to know your AMSC:
a. AMSC = Last 60 months MSC / 60 months
b. AMSC = Total contributions / total # of months
2. Credited Year of Service - Total number of years being an active member of SSS
Ex: 120 months (Total contributions)
120 / 12 (equals to one year)
= 10 CYS

How to Compute Pension?

3 Factors that affects the amount of Pension

1. Total number and amount of contribution

2. Credited Year of Service
3. Number of Dependent Minor Children Age less than 21 years’ old
2 ways how to compute SSS monthly pension

1. Manual computation (using three formula)

2. Online computation (SSS website)
For better understanding, here is a sample computation below:
The formula that yields highest amount will determine your final monthly pension
1 formula:
st

1,200 PHP (If CYS is between 10-20 years)

2,400 PHP (If CYS is 20 years or more)

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Example: If the retiree has the CYS of 22 years
2,400 + 1,000 = 3,400
2 formula:
nd

40% of AMSC + 1000 PHP

3 formula:
rd

300 PHP + 20% of AMSC + 2% of AMSC for each CYS in excess of 10 years +
1000 PHP

Example:
20000 PHP – Monthly
Salary
40 - Credited Year of
Service
And according to the
contribution table the
monthly salary credit of this
bracket is 20000

Fig. 16 Contribution Table with highlighted row of the Php 20,000

Monthly Salary Credit

COMPUTATION USING FORMULA 1:

2,400 + 1,000 = 3,400
COMPUTATION USING FORMULA 2:
40% of AMSC + 1,000
(.40 * 20,000) + 1,000
8,000 + 1,000= Php 9,000 Monthly Pension
COMPUTATION USING FORMULA 3:
300+ 20% of AMSC + (2% of AMSC) * (CYS - 10) + 1,000
300 + (.20 * 20,000) + (0.02* 200,00) * 30(40 - 10) + 1,000
300+ 4,000 + 12,000 + 1,000
= 17,300 Php

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 Therefore, the retiree will receive 17,300 PHP as
FORMULA 1 – Php 3,400 his/her monthly Pension

FORMULA 2 – Php 9,000

FORMULA 3 – Php 17,300 Remember: Higher Rate of Contribution and
longer CYS will give you Higher amount of
pension
Death Benefit
A cash benefit granted either as a monthly pension or a lump sum amount- to the beneficiaries
of a deceased member
CONDITIONS

1. A primary beneficiary to be entitled to monthly pension, deceased member must have

paid at least 36 monthly contributions prior to the semester of death

2. If with less than 36 monthly contributions prior to the semester of death, a lump sum
amount is granted to the primary beneficiaries

3. Secondary/ designated beneficiaries and legal heirs are entitled to lump sum benefits
only regardless of the number of contributions paid by the member.
AMOUNT OF BENEFIT

 If qualified, the member’s primary beneficiary is granted a monthly death pension,

plus a 13 month pension payable every December.
th

 If there are no primary beneficiaries, the member’s secondary beneficiaries (dependent

parents) shall be given a lump sum amount. In their absence, the lump sum benefit is
paid to the member’s designated beneficiaries or their legal heirs.

 If the dependent has minor children, they are entitled to receive a dependent’s pension
equivalent to 10% of the member’s monthly pension. Only five (5) minor children
beginning from the youngest are entitled to a dependent's pension. No substitution is
allowed.

 The minimum monthly death pension is 1000 if the member had less than 10 CYS.

 1200 if with at least 10 CYS; and 2400 if with at least 20 CYS.

 Plus 1000 additional benefit effective January 2017

Funeral Benefit
A cash benefit given to whoever paid for the funeral expenses of the deceased member
CONDITIONS

1. The employee-member was reported for coverage by their employer.

2. A self-employed member, OFW, Non-working spouse who had at least one (1)
contribution payment.

3. A voluntary member who was previously covered either as employed self-employed,

OFW and had at least one (1) contribution payment.

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 4. The employee-member was subject to compulsory coverage but was not reported for
coverage by their employer.
AMOUNT OF BENEFIT

 The funeral benefit is a variable amount ranging from a minimum of 20,000 to a

maximum of 40,000 depending on the member’s number of paid contributions and
average monthly salary credit.
UNEMPLOYMENT BENEFIT
Also called Unemployment Insurance or Involuntary Separation Benefit
It is a cash benefit granted to covered employees, including kasambahay and OFWs (sea-
based and land-based) who are involuntarily separated from employment (e.g., due to
retrenchment or downsizing, closure or cessation of operation, installation of labor-saving
devices, redundancy, etc.)
CONDITIONS
1. Members should not be over 60 years old at the time of involuntary separation; not
over 50 if an underground or surface mineworker; and not over 55, if a racehorse
jockey.
2. Members have paid at least 36 monthly contributions, 12 months of which should be
in the 18-month period immediately preceding the month of involuntary separation.
Note: An employee shall not be qualified to receive the benefit if they have been involuntarily
separated from employment due to the following:

 Serious misconduct.

 Willful disobedience to lawful orders.

 Gross and habitual neglect of duties.

 Fraud or willful breach of trust/loss of confidence.

 Commission of a crime or offense; or

 Analogous cases like abandonment, gross inefficiency, disloyalty/conflict of interest/

dishonesty.
AMOUNT OF BENEFIT

 If qualified, the employee is granted an amount that is equivalent to twice the half of
the member’s average monthly salary credit (AMSC).

 The benefit is granted thru a one-time payment, and the claim must be filed within a
year from the date of involuntary separation.

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 SUMMARY
The content of this report was all about Social Security System, it focuses mainly on
elaborating the SSS meaning that shows what is the very important thing needed to be
remembered and that is the word “private”, qualified members that work under private sectors
are also mentioned. The 5 contribution tables with real life situations, because the type and
amount of contribution varies depending on what category a person belongs to. Also, the
different benefits wherein the amount a member will receive also differs. That's why there is
information and solutions on how to solve a specific query regarding Benefits. Lastly, how
these mentioned matters helped the students to reflect on the topic which is SSS.
The process and computation of the benefits were also discussed here by providing visual
representations, easy to analyze formula and real-life situations; for the better and easier
understating of the reader. Group Seven (07) gave their best in making this report and we
hope that you enjoy learning! Mathematics isn’t that hard to understand as long as our hearts
and minds are willing to learn. This is Group seven and that ends this research and study
about the Social Security System or SSS.

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 BIBLIOGRAPHY
Can an unemployed person start paying contributions as a voluntary member to qualify for
UMID? (n.d.). FilipiKnow. https://filipiknow.net/umid-for-unemployed/
How to compute SSS maternity benefit? (y2021 UPDATED VERSION). (2021, February 4).
YouTube. https://www.youtube.com/watch?v=r8EkZ7Gm_Q4
M. (2021a, July 23). SSS pension computation guide for retirement planning. Moneymax.
https://www.moneymax.ph/government-services/articles/sss-pension-computation
O. (2021b, December 28). SSS monthly contribution table & schedule of payment 2022. The
Pinoy OFW. https://thepinoyofw.com/sss-contribution-table/
S. (2021c, January 15). New SSS contribution table. MPCamaso & Associates.
https://mpca.com.ph/new-sss-contribution-table/
SSS sickness & maternity manual computation | SSS sickness benefit requirements. (2021,
April 2). YouTube. https://www.youtube.com/watch?v=K_7t5biHjjY
Zoleta, V. (2022, January 7). How to compute your SSS contribution: An ultimate guide.
FilipiKnow. https://filipiknow.net/sss-contribution/

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 AUTHORS’ REFLECTIONS

BERDERA, SHANE R.
I'm at a loss for words to express how enlightening and
exciting my experience exploring the world of SSS was.
Indeed, as Dave Ramsey says, "term life insurance is a
strong defensive game plan," and it made me understand
how valuable it is to have life insurance as I prepare to enter
the adulthood era of my life. I am fortunate to have the
opportunity to learn a lot from this experience, and I am self
- assured that every piece of information from assessing how
the contribution table system works, why each individual
must pay a different amount of contribution depending on
one’s job status and as presented in the specific contribution table, up to the possible benefits
every member can gain will be beneficial as I go through this in the future.
Most significantly, I've realized that life is too short and that death is a reality for everyone,
thus we all need insurance that will financially secure our loved ones, whether it's a vehicle,
life, health, house, dental, or disability insurance. And never forget that financial planning for
our family is done out of love for them. Fortunately, I did not face any difficulties or encounter
any factors that would have hindered my ability to complete the assigned task.

GABRIDO, TEHILLAH GRACE T.

As one of the authors of this written report, I find it really
challenging to search and study a source then making the
parts one by one, really challenging because what if my
source isn’t reliable? Or what if my synthesis is wrong? Then
what am I going to do? What I did was focusing on the main
goal and that is to finish a quality output. Thanks to sir
Patrick’s given task, because of it I am able to explore my
abilities while working, and I would bring this aspect as I go
through life since being someone who is preparing for the
future this experience was really helpful.
Thanks to my fellow group mates that contributed a lot in
finishing this report. Along the process we have experienced some difficulties and errors but
by unity and perseverance we managed to handle the hole and here we are thanking each
other because we’ve done such a task. Hoping to have these kinds of group mates again for
the many tasks ahead of us, PADAYON Group 07!

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 LACRETE, SHERWIN B.
First and foremost, it is such a weird coincidence that my
father asked me to check on his SSS contributions right before
the topic was given to us making me have at least some prior
knowledge about how the contribution tables work. But having
to learn and research further about SSS have taught me that
it is important for each and every one of us to invest in the
future. Seeing all the benefits that SSS could provide got me
thinking of all the money that people could save if they try and
apply for a membership.
As for the challenges and hindrances, managing my time isn’t that difficult at least for me.
Although I would stay up late at night just to finish a part of the report, I would just think to
myself that I’d get a wonderful sleep and wake up fresh the next day.

Berdera, Shane R. Gabrido, Tehillah Grace T. Lacrete, Sherwin B.

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