Is It Better to Pay Higher Monthly SSS Contributions?

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I’ll put my answer in Filipino for an easier understanding of the subject.

Like what Ms. Louie Sebastian, Social Security System (SSS) VP-Media Affairs, said, kung yung “pension” lang ang habol mo, wais nga na minimum na muna ang ihulog mo. Isagad mo na lang ang monthly contribution mo dun sa last 60 months or 5 years bago ang retirement mo. For example, if 65 ang target retirement age mo, until your 60th year, mag minimum monthly contribution ka. On your 61st year until your 65th, ilagay mo na sa maximum ang monthly contribution mo. Pero, yun nga ay kung pension lang ang habol mo.

Hindi lang pension ang benefit na makukuha sa SSS. May funeral, maternity at sickness benefits din. At ang amount na makukuha mo sa ibang benefits na ito ay nakadepende na sa monthly contribution mo.

“Hindi pa naman ako mamamatay.” – Sana nga, sana nga wag muna, pero napangakuan ka ba na surebol na gigising ka every morning?

“Malakas ako. Nag-e-exercise ako araw-araw. Kita mo tong biceps ko?” – Oo nga, laki ng biceps mo. Pero kahit na kasing lapad pa yan ng poste ng Meralco, kapag tinamaan ka ng sakit that you didn’t see coming, paano na? Kasalanan na naman ni PNoy?

“Lalake ako. Aanhin ko ang maternity leave?” – We have this what we call “paternity leave”. Kung iniisip mo na ikaw ang papalit sa misis mo sa panganganak kapag nagpaternity leave ka, wag kang mag-alala dahil kahit kelan hindi pwedeng manganak ang lalake. Kapag nanganak ang misis mo (if you have one), may 7-day paid leave ka. That’s paternity leave.

“Hindi naman ako mag-aasawa. So, aanhin ko ang paternity leave?” – Ang hindi pag-aasawa ay hindi naman immunity against sickness and death, lalo kung wala kang life and health insurance na pwedeng asahan aside from SSS.

Personally, I would recommend paying the maximum monthly contribution, regardless if you’re on the last 60 months prior to your retirement age or not, if you’re not yet okay with your life savings , life insurance, and health insurance that can over those other SSS benefits aside from the pension benefit.

In my case, being self-employed, I have recently told my bookkeeper that me and my wife would want to pay a monthly contribution that’s between the minimum and maximum contribution until the age of 60 since we got health and life insurance policies already. I am not after the salary loan I could apply for because it is my policy in my household that neither me nor my wife should apply for a loan without a sensible reason on why a loan is a “must”.

Ang sabi ng iba, mag-loan ka raw para raw magamit mo ang benefit na yun ng SSS. Pambihira talaga kung mag-isip ang iba. Eh ikaw rin naman ang magbabayad nun, may interest pa. Kung “experience” lang sa paglo-loan ang habol mo, wag na. Kung wala namang return of investment (ROI) na ibibigay ang nilo-loan mo, at atat na atat ka lang talagang makapag-loan for no urgent reason, wag na.

Watch this video, too.

I also wrote a few SSS-related articles in the past. Here are additional resources for you.

SSS Benefits You Might Be Missing
Stock Market Investments Vs. SSS Pension: Maintain Both or Drop SSS?

Jaycee De Guzman

Jaycee De Guzman

I am the founder and CEO of iPresence Digital Marketing, Inc. and Equilyst Analytics, Inc. At iPresence, we have been helping SMEs reach and dominate the global market through our digital marketing services since 2001. At Equilyst, we have been helping Filipinos experience a simplified and profitable stock trading and investing experience in the Philippine Stock Market since 2014.
Jaycee De Guzman

6 COMMENTS

  1. Kung may health at life insurance ka, hindi ba safe na na minimum ang ihulog sa SSS (at least until 5 years before your retirement) kasi kahit naka-maximum contribution ka, mas maliit ang death/health/hospitalization benefit na ibibigay ng SSS sayo kaysa kung pinasok mo sa insurance/HMO as added premium yung same amount na pinasok mo sa SSS (on top of the minimum)?

    • Hi Vincent,

      Thank you for visiting my site.

      Yes, pwede yon, especially if self-employed ka. Pero if employed ka (company), may table of contribution na sinusundan kung magkano ang SSS contribution mo based dun sa salary mo.

      Now, if you’re self-employed at dati kang nagbabayad ng maximum, I suggest wag mong biglain ang pag-a-adjust ng monthly SSS contribution mo. If from maximum, binigla mo sa minimum, the SSS agent will raise an eyebrow on you. Obvious manipulation na yun.

      • Thanks Jaycee! Tama ka dyan. Wala talaga sa atin ang choice ng bracket kung employed. I enjoy reading your articles and I think you’re doing a great service to the financial literacy of this country. You fill in what the government agencies fail to cover (information-wise). More power to you!

  2. Natawa ako dito, so true.

    ‘Ang sabi ng iba, mag-loan ka raw para raw magamit mo ang benefit na yun ng SSS. Pambihira talaga kung mag-isip ang iba. Eh ikaw rin naman ang magbabayad nun, may interest pa. Kung “experience” lang sa paglo-loan ang habol mo, wag na. Kung wala namang return of investment (ROI) na ibibigay ang nilo-loan mo, at atat na atat ka lang talagang makapag-loan for no urgent reason, wag na.’

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