Social Security System (SSS) Landmarks are being implemented Pension reform plan begins In September this year, the monthly pension for all pensioners will be gradually increased over the three-year period.
The Social Security Council (SSC) approved the SSS Pension Reform Plan, which increased pensions for all SSS pensioners by three years on July 11.
This is the first multi-year adjustment of pensions in SSS’s 68-year history.
SSS President and CEO and CEOfIcer Robert Joseph M. De Claro said in a statement.
Starting this year, as of August 31, 2025, all pensioners will receive annual pensions from September to 2027 each year.
Pensions for retired and disabled pensioners will increase by 10% each year from September to 2027. Pensions for dead or survivor pensioners will increase by 5%.
“In three years, pensions for retired/disabled pensioners will increase by about 33% and pensions for dead/survivor retirees will increase by 16%.”
About 3.8 million retirees will benefit from pension reform. This includes 2.6 million retirement/disability pensioners and 1.2 million survivors pensioners.
SSS said the pension reform plan “does not have to add any donations”.
Mr Declaro said the actuary team confirmed that the pension fund was “still financially reasonable”.
SSS quoted its chief actuary as saying that the reform will slightly shorten the life of the fund – by 2049 in 2049, but this is offset by previous contribution reforms and better collection efforts.
Mr. De Claro said they are “committed to restore the life of the fund through coverage expansion and improvement of EF collectionsfintelligent. ”
Ralph G. Recto, Treasury Secretary of the SSC Chairman, said pensions will help stimulate economic growth as pensioners will have additional spending capacity.
SSS estimates that pensions will inject approximately pesos into the Philippines economy from 2025 to 2027, but the Ministry of Finance (DOF) estimates that this could reach pesos 117.2 billion.
“For retirement pensioners, about P4,923 of those aged 60-89 (99.4% of all pension pensioners) are the average monthly pension before the implementation of this reform plan. The amount of such pensions will increase to P6,548, approximately P6,548, which is the third increase in pensions – an increase of P1,625 or 33% of P1,625 or 33%.”
It added: “SSS will pay approximately P41,145 for the additional pension for this average retirement pensioner after three years of pension increase starting in September 2025.”
Meanwhile, SSS said it was able to implement pension reforms due to the increase in incremental contribution rates completed in January 2025.
Under Republic Act No. 11199 or the Social Security Act 2018, SSS has implemented an incremental contribution rate of one percentage point every two years since 2019, because the original contribution rate of the original contribution rate is 11%. – AMCS
