The Social Security System (SSS) is an insurance program mandated by the Philippine government to cover all income earners or workers in the private sector.

• Every month, Employed Members must pay their SSS contributions through the company they work for
• SSS contributions are determined based on the employee's Range of Compensation for the month.  Range of Compensation should consider all employee's earnings
• Employees are classified into a Monthly Salary Credit (MSC) bracket based on Range of Compensation
• Employers (ER) are required to contribute 8% of MSC
• Employees (EE) are required to contribute 4% of MSC
• Employers are also required to contribute to the Employees Compensation program (EC).  

ZipHR CALCULATION

1. Range of Compensation - Compensation to be included for SSS can be configured in Payroll > Settings > Payment Configurations > Contribution Wages.
2. Monthly Salary Credit (MSC) - MSC is determined based on Range of Compensation
3. Employer (ER) contribution = 8.5% * MSC 
4. Employee (EE) contribution = 4.5% * MSC 
5. Employee Compensation (EC) = P10 for MSC of P15,000 and below, P30 for MSC above P15,000 and up; paid only by the employer

SEMI-MONTHLY SSS ADJUSTMENTS

If the employee is paid twice monthly, ZipHR will automatically spread the SSS requirement across 2 periods as follows.

For any 1st semi-monthly period, or first payslip issued within each month.

1. MSC - depends on Payment Configurations > Contribution Wages
2. ER and EE - contributions based on half of the estimated monthly contributions
3. EC - will always be set to P10 as the minimum payment

For any 2nd semi-monthly period, or the second payslip issued within each month

1. MSC - determined based on compensation in 1st-half plus compensation in 2nd-half
2. ER and EE - contributions based on the full month's MSC calculated above, less any ER and EE already paid in 1st-half
3. EC - based on full month MSC less any EC paid in 1st-half

GENERATE REPORT

ZipHR also provides a report for the SSS employee compensation file.

• Go to Reports >> Contributions
• Select SSS
• Select the year and month of the needed report
• Use filters if multiple branches, companies, or cost centre are included in a single ZipHR account and separate SSS reports must be generated.
• Click the download button
• Export SSS report as:
  • XLSX Full Details - It is used to view the full information of SSS Report in a standard excel format.
  • CSV SSS Format - It used to view SSS data in text format and is separated by (;) semi-colon.
  • XLSX SSS Format - It adapts the SSS Report File Format and is used to view the partial information of a SSS Report.
  • TXT SSS Format - It is used to view SSS data in a file that contains only text that can be open in notepad.