The Social Security System (SSS) on Thursday announced a three-year increase in pension for all its pensioners starting September this year, marking its first multi-year adjustment in the institution’s 68-year history.
This is part of a landmark Pension Reform Program, in line with the directive of President Ferdinand Marcos Jr. and following his discussion with Finance Secretary Ralph Recto on the matter.
The SSS Pension Reform Program was approved by the Social Security Commission (SSC) under Resolution No. 340-s.2025 dated July 11. The corresponding SSS Circular on the program will be published accordingly in a newspaper of general circulation.
Anchored on Republic Act 11199 (Social Security Act of 2018), particularly Section 4 empowering the SSC to adjust pension benefits, this reform answers the long-standing call for higher pensions while ensuring the fund’s long-term stability.
“We’ve heard the clamor for higher pensions loud and clear,” SSS President and Chief Executive Officer 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 added.
According to the SSS Chief Actuary, the reform will result in only a manageable reduction of fund life from 2053 to 2049, offset by stronger cash flows from previous contribution reforms and enhanced collection efforts.
Starting this year, all 3.8 million pensioners as of August 31 will receive annual pension increases every September until 2027. Retirement and disability pensioners of the SSS will receive a 10-percent increase, while death or survivor pensioners will receive a 5-percent raise.
“For retirement pensioners aged 60 to 89 (99.4 percent of all retirement pensioners), around P4,923 is the average monthly pension just before implementation of this reform program. Such a pension amount will grow to about P6,548 after the third tranche of pension increase — an increase of P1,625 or 33 percent,” the SSS said in a report.
“After three years of pension increases starting September 2025, SSS will have paid about P41,145 in additional pensions to such average retirement pensioner,” it added.
The social insurance institution clarified that while it implements these pension increases, there will be a moratorium on contribution increases over the same period. Thus, the pension increases will not require any contribution increase.
The pension reform is expected to inject an aggregate amount of P117.2 billion into consumer spending through the pensioners, boosting economic growth over the next three years.
The implementation of the pension increase program is grounded in actuarial soundness, ensuring that the SSS fund remains financially sustainable. This is made possible by strong cash flows from the completed contribution rate hikes mandated by the Social Security Act of 2018—from 2019 to 2025—as well as positive financial performance from January to April.
Upon implementation of the reform program, the SSS will devote its efforts towards generating higher returns on investments to support its members and improving its productivity and efficiencies through modernization.
At the same time, parallel initiatives for the welfare of SSS pensioners will be actively pursued.
