The Social Security System (SSS) on Thursday announced a pension reform program that will raise maximum monthly retirement benefits by a third to P29,465 by September 2027.
The state pension fund said the reform, the first multi-year adjustment in its 68-year history, aligns with President Ferdinand Marcos Jr.’s directive and discussions with Finance Secretary Ralph Recto.
Supported by actuarial studies, the program features a structured, three-year increase in pensions for all SSS pensioners. The Social Security Commission (SSC) approved the program under Resolution No. 340-s.2025 on July 11, 2025.
The minimum retirement benefits will rise from P2,200 in June 2005 to P2,420 by September 2025, P2,662 by September 2025 and P2,928 by September 2027, translating into a three-year increase of P728 or 33 percent.
Data also show that the average retirement benefits will increase from P5,120 in June 2025 to P5,632 by September 2025, P6,195 by September 2026 and P6,815 by September 2027, representing an overall increase of P1,694 or 33 percent.
Meanwhile, the highest retirement benefits will rise from P22,137 in June 2025 to P24,350 by September 2025, P26,786 by September 2026 and P29,464 by September 2027. It reflects a three-year adjustment of P7,327 or 33 percent.
The reform is anchored on Republic Act No. 11199 (Social Security Act of 2018), specifically Section 4, which empowers the SSC to adjust pension benefits.
“We’ve heard the clamor for higher pensions loud and clear,” SSS president and chief executive Robert Joseph De Claro said.
“With the guidance of Finance Secretary and SSC Chairperson Ralph G. Recto, and after careful actuarial review, we are rolling out a rational and sustainable pension increase that uplifts all pensioners without compromising the fund’s actuarial soundness,” he said.
The increases will be implemented in three annual tranches every September:
September 2025 (for pensioners as of Aug. 31, 2025):
10% increase – Retirement and Disability Pensioners
5% increase – Death or Survivor Pensioners
September 2026 (for pensioners as of Aug. 31, 2026):
Additional 10% increase – Retirement and Disability Pensioners
Additional 5% increase – Death or Survivor Pensioners
September 2027 (for pensioners as of Aug. 31, 2027):
Additional 10% increase – Retirement and Disability Pensioners
Additional 5% increase – Death or Survivor Pensioners
After three years, pensions will have increased by about 33 percent for retirement/disability pensioners and 16 percent for death/survivor pensioners.
The SSS said the program aims to uplift all pensioners through inclusive benefit adjustments, recover from inflation to protect purchasing power and promote the value of working, saving, investing and prospering, as mandated by RA 11199.
According to the SSS chief actuary, the reform would result in a manageable reduction of fund life from 2053 to 2049, offset by stronger cash flows from previous contribution reforms and enhanced collection efforts.
“Our actuarial team confirms that the fund remains financially sound,” De Claro said. “We are committed to restoring fund life back to 2053 through coverage expansion and improved collection efficiency.”
The reform will benefit over 3.8 million pensioners, including 2.6 million retirement/disability pensioners and 1.2 million survivor pensioners. It is projected to inject P92.8 billion into the economy from 2025 to 2027.
The Pension Reform Program (PRP) will not necessitate any contribution increase, unlike the P1,000 additional benefit allowance given to all pensioners starting in 2017, which required immediate contribution increases to restore financial stability to the SSS fund.
The SSS Pension Reform Program of 2025 marks a historic step toward a more inclusive and responsive social security system, it said.
 announced a landmark pension reform to increase maximum monthly benefits to P29,465 by Sept 2027, fulfilling President Marcos Jr.'s directive without raising member contributions.){kind=link}