What Is Mandatory Provident Fund In SSS

What Is Mandatory Provident Fund In SSS. Planning for retirement is one of the most important financial goals anyone can pursue. In the Philippines, the Social Security System (SSS) has made significant strides in helping members secure their future through a new and enhanced savings program the SSS Mandatory Provident Fund (MPF).

This comprehensive article will help you understand exactly what is mandatory provident fund in SSS, how it works, who it applies to, and why it matters for your financial future. We’ll also guide you through contribution rates, payment options, benefits, and how to access your savings. Let’s dive into the details.

The SSS Mandatory Provident Fund (MPF), also known as the Workers’ Investment and Savings Program (WISP), is a retirement savings plan managed by the Social Security System. It was launched to provide additional financial security for members, especially upon retirement. This enhanced scheme builds on the regular SSS pension program, offering higher returns and long-term value.

Note: Contributions to the MPF are mandatory for members whose Monthly Salary Credit (MSC) exceeds a specific threshold.

Objective of the MPF

The core goal of the SSS Mandatory Provident Fund is to supplement your regular SSS pension by growing your savings through investments. This ensures a more comfortable and financially secure retirement.

The SSS Mandatory Provident Fund is designed to cover a wide range of members, regardless of employment status. Here’s a breakdown:

Member Type	Eligibility Condition
Employees	Automatically enrolled if MSC exceeds PHP 20,000
Self-Employed	Must contribute 14% of MSC if above PHP 20,000
Voluntary Members	Eligible if contributing to regular SSS and MSC exceeds threshold
Overseas Filipino Workers (OFWs)	Eligible if MSC exceeds PHP 20,000 and enrolled in regular SSS

REMEMBER: The MPF is mandatory for members with an MSC above PHP 20,000.

The amount you contribute to the SSS Mandatory Provident Fund depends on your Monthly Salary Credit (MSC). Below is a sample table showing how contributions are divided:

Sample MPF Contribution Table (2025)

Monthly Salary Credit	Employee Share (4.5%)	Employer Share (9.5%)	Total Contribution
PHP 10,000	PHP 450	PHP 950	PHP 1,400
PHP 15,000	PHP 675	PHP 1,425	PHP 2,100
PHP 20,000	PHP 900	PHP 1,900	PHP 2,800
PHP 25,000	PHP 1,125	PHP 2,375	PHP 3,500
PHP 29,750 (Max)	PHP 1,339	PHP 2,826	PHP 4,165

Self-employed and voluntary members pay the full 14% of MSC without an employer share.

It is through this structure that we ensure contributions are proportional to income, which makes it a fair and manageable contribution structure.

Business Employer- Employee

Household Employer / Household Employee

Land-Based OFW Members

Self-Employed Members

Voluntary and Non-Working Spouse Members

Read also: SSS Contribution Table 2025

1. For Employed Members

• Contributions are automatically deducted from your salary.
• Your employer remits your share (4.5%) and their share (9.5%) to the SSS.
• No manual action needed from the employee.

Read also: How To Pay SSS Loan Online

2. For Self-Employed, Voluntary Members, and OFWs

You are responsible for paying the entire 14% of your MSC. Here’s how you can pay:

Online via My.SSS Portal

• Log in to My.SSS.
• Generate your Payment Reference Number (PRN).
• Choose from online banking, e-wallets, or partner banks.

In-Person

• Visit an accredited SSS branch or payment partner.
• Provide your PRN and payment details.
• Make your payment at the counter.

SSS Mobile App

• Log in using your SSS Mobile App credentials.
• Generate a PRN.
• Pay via mobile wallets or banking apps.

Read also: Where To Pay SSS Contribution

Member Type	Deadline
Employed	On or before the 15th of the following month
Self-Employed & Voluntary	Based on SSS number and schedule; check My.SSS for updates
OFWs	Flexible deadlines; but must be within scheduled periods

Always check your Contribution History to ensure payments are correctly posted.

Let’s walk through an example:

• Your Monthly Salary: PHP 25,000
• MSC: PHP 25,000
• Employee Share (4.5%): PHP 1,125
• Employer Share (9.5%): PHP 2,375
• Total Contribution: PHP 3,500

If you’re self-employed, you would pay the full PHP 3,500 on your own.

Read also: SSS Pension Calculator – How to Use the SSS Pension Calculator

Contributing to the SSS Mandatory Provident Fund comes with several key benefits:

1. Enhanced Retirement Savings

Regular contributions and investment returns ensure your retirement fund grows over time.

2. Flexible Withdrawal Options

Upon retirement, choose between a lump sum or installment payouts.

3. Investment Growth

Your savings are invested in government bonds and other safe instruments, yielding higher returns.

4. Tax-Free Earnings

All earnings from your MPF contributions are tax-free and principal-protected.

5. Automatic Participation

No need to register separately. If your income exceeds the MSC threshold, you’re automatically enrolled.

In its first year of implementation, the Workers’ Investment and Saving Program (WISP) — the investment arm of the MPF generated:

• ₱333.77 million in income
• 6.39% Return on Investment (ROI)

This significantly outperformed the average 10-year Treasury bond yield of 4.1% in 2021. Even during the pandemic, SSS investments performed exceptionally well.

SSS President Michael Regino emphasized that this performance adheres to the principles of safety, good yield, and liquidity.

Read also: SSS Retirement Benefits – How Much Is SSS Retirement Benefit

To ensure transparency and peace of mind:

1. Log in to your My.SSS account.
2. Check the Contribution History tab.
3. Verify that payments are up-to-date.
4. Contact SSS Customer Service if there are errors or missing entries.

When you retire, you’ll have two options to access your accumulated savings:

Withdrawal Option	Description
Lump Sum	Withdraw the entire amount in one go. Ideal for large expenses.
Installment	Receive regular monthly payouts. Great for managing ongoing living costs.

Choose the option that best fits your financial lifestyle in retirement.

Read also: SSS Educational Assistance Loan Program

Still unsure about the SSS Mandatory Provident Fund? Here’s why it deserves your attention:

• It’s a long-term savings plan with government support.
• Returns are better than traditional savings or time deposits.
• Contributions are automated for employees.
• Peace of mind in knowing you’re building financial security.

The MPF is mandated under Republic Act No. 11199, also known as the Social Security Act of 2018. The law strengthened the Philippine social protection system, ensuring private-sector workers and other individuals have access to:

• Higher retirement benefits
• Additional savings
• Principal-protected, tax-free investments

Read also: SSS Announces ₱1976 Pension Increase for 2025

As of April 30, 2022, the program had already achieved:

• Over ₱21 billion in collected contributions
• More than 4 million active MPF members

This reflects strong participation and growing trust in the MPF as a key retirement savings tool.

Read also: SSS Pension ₱4800 Monthly Benefit 2025

Can I opt out of the MPF?

Ans: No. If your MSC exceeds PHP 20,000, enrollment in the MPF is automatic and mandatory.

What happens if I miss a contribution?

Ans: For employed members, employers are required to remit payments. For others, pay before the deadline to avoid missed contributions.

Are WISP and MPF the same?

Ans: WISP is the investment mechanism under the MPF. Think of MPF as the program, and WISP as how your money grows.

The MySSS Pension Booster is more than just a savings program—it’s a commitment to your financial future. By understanding how it works, who it applies to, and how contributions are calculated, you can make informed decisions that benefit you in the long run.​