Balmori Software Inc.

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Photo: Pavel Danilyuk

Posted 2025 January 03

The Social Security administration just released SSS Circular No. 2024-006. It increases contribution to 15% of the Monthly Salary Credit (MSC). The MSC is an amount midway in the SSS-defined monthly compensation range of employee.

For example, for employees whose monthly range of compensation falls between 14,750 - 15,249.99, the MSC is Php15,000. Hence the SSS contribution is: 15,000 x 15% = 2,250.00

Salary ranges and MSCs simplify the task of computing contribution amounts into a table of values. The alternative is to force payroll clerks to apply mathematical formulas to every single employee's pay, which could easily result in errors.

Two-thirds of the contribution is shouldered by the employer (Php1,500 in our example), one-third by the employee (Php750).

The last time the contribution rate was increased was in January 2023, when SSS Circular No. 2022 - 033 raised it to 14%.

There are more compensation ranges now; with the first compensation range starting from 0.01 to 5,249.99 (i.e., below 5,250) having an MSC of 5,000

The compensation ranges increase by 500 for each succeeding each range, with the MSC increasing too by Php500 for every compensation range.

The portion of the MSC that is the basis for computing SSS contributions maxxes out at Php 20,000 for monthly compensation range of Php 19,750.00 upward. Hence from that point upwards, the SSS Contribution is Php3,000.00 (20,000 portion of the MSC x 15%). Employer shoulders 2K, employee 1K.

However, the "excess" (refer to B.2. (in page 3 of the SSS Circular) which starts at Php20,250, becomes the basis now for the Mandatory Provident Fund (MPF). Again, the 15% rate is applied to this "excess" and the employer shoulders 2/3 of this MPF; the employee 1/3. So the MPF (formerly WISP) deductions for Employer and Employee under the circular, also increased over the 2023 contributions.

Click here to download the official copy of Circular No. 2024-006 (if you happen not to have it yet.)

And also, it bears noting that SSS Circular No. 2022 - 033, back in 2023, renamed the Mandatory Provident Fund (MPF) the Workers' Investment and Savings Program (WISP). But now, based on 2024-006, it seems it's back to being called the Mandatory Provident Fund (MPF) again.

Upgrading your SURE! PayMaster. Users of Balmori Software's SURE! PayMaster can upgrade immediately to Version 7.10.8 by getting in touch with us at balmori@balmorisoftware.com. Upon receipt of your email, we'll email you a formal proposal. The upgrade cost will depend on your current version number.

Technical notes: For upgraders, installing the upgrade is a simple matter of running the installation exe, and selecting Install Program Only (No Data Files)

No data conversion procedure is needed, as Version 7.10.8 internally creates the new SSS table, and the compute pay algorithms are already in place.

Also, to make the upgrade procedure stress-free, users should feel reassured in knowing that the upgrade can be installed anytime, even if the user organization still hasn't finished computing pay for periods within 2024, and even if annualizations still have to be done. When V.7.10.8 detects if the pay period on hand being processed is within 2024, it will use the old SSS Tables and algorithms. The computation of pay using the new 2025 SSS Table and algos kicks in only when the pay period is detected to be in the year 2025 onwards.

The evergreen payroll solution. SURE! PayMaster has been serving Philippine business since 1987. It launched just a few years after the PC revolution came to the Philippines.

From the very beginning SURE! PayMaster has been positioned as being very easy to use, above all other design considerations. That ease of use is the result of three characteristics.

First, SURE! PayMaster's user interface is designed to be as simple as possible. Each screen is intuitive, explicitly aimed at being outright comforting rather than bewildering to the first-time user. Our goal has always been that all our solutions can be handled by office workers who do not have specialized computer training.

Second, SURE! PayMaster is always up to date with all relevant regulations issued by the four government agencies that affect payroll issues: the BIR, the SSS, Philhealth, and the Home Development Mutual Fund/PAGIBIG. Balmori Software constantly monitors the regulatory environment so that our users always have this assurance.

Third, SURE! PayMaster provides all the reports expected by company payroll administrators and employees alike - payroll registers, payslips, interface with bank ATMs, and so on - with the absolute minimum of setup. It goes without saying that it outputs all the reports required by the above-named government agencies, without the need for any coding or programming of any sort. (But aside from pre-formatted reports, SURE! PayMaster also allows users to create custom reports.)

Many competing payroll solutions have entered the market over the years, only to fade away, while SURE! PayMaster soldiers on. It's a testament to Balmori Software's commitment to providing the best solutions for Philippine entrepreneurs and businesses, solutions that remain relevant and useful for decades.

Happy new year!







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