SSS to give three-year pension increase without contribution hike

Metro Manila, Philippines - The Social Security System (SSS) will raise the pension payout gradually over three years beginning in September without the corresponding contribution hike.

A news release on Thursday, July 31, stated that the Social Security Commission approved the SSS Pension Reform Program in a resolution dated July 11.

“Supported by comprehensive actuarial studies, the program features a structured, three-year increase in pensions for all SSS pensioners - the first multi-year adjustment of its kind in the institution’s 68-year history,” the SSS said.

The three annual tranches every September will see pensions rising by about 33 percent for retirement/disability pensioners and 16 percent for death/survivor pensioners.

For example, as of June, the SSS said that the minimum monthly pension for retirement pensioners was P2,200, while P2,000 for both disability and survivor pensioners.

The minimum monthly pension by September 2027 will be as follows:

Retirement pensioner - P2,928.20

Disability pensioner - P2,662

Survivor pensioner - P2,315.25

The SSS said more than 3.8 million pensioners are expected to benefit from the reform, broken down into 2.6 million retirement/disability pensioners and 1.2 million survivor pensioners.

The state insurer for the private sector said the program is seen to inject P92.8 billion into the economy from 2025 to 2027.

“This Pension Reform Program (PRP) will not necessitate any contribution increase unlike the ₱1,000 additional benefit allowance given to all pensioners starting 2017 that immediately required contribution increases to restore financial stability to the SSS fund,” the state insurer said.

“Our actuarial team confirms that the fund remains financially sound,” SSS President and CEO Robert Joseph de Claro said. “We are committed to restoring fund life back to 2053 through coverage expansion and improved collection efficiency.”