SAN JUAN, La Union — The Social Security System (SSS) announced on Thursday, July 31, that pensioners under the state-run social insurer will start receiving increased monthly payouts starting this September.
This is the SSS’ first pension hike of its kind in its nearly 70-year-history.
This pension hike will run through 2027 as part of a landmark reform program approved earlier this month by the insurer’s Commission of Resolution 340 in response to “long-standing calls for higher pensions while ensuring the fund’s long-term viability.”
The program is expected to benefit nearly four million pensioners, over half of which are retired and disabled while 1.2 million are survivor pensioners.
Higher contributions will not be needed to keep monthly payouts stable. P92.8 billion is estimated to flow into the Philippine economy between 2025 and 2027 under the program.
Breakdown
The price hike will be 10% for retirement and disability pensioners and 5% for death or survivor pensioners, to be observed over the next three years in annual phases every September.
To be eligible for the price hike, pensioners must be active as of August 31 of each corresponding year.
By September 2027, retirement and disability pensioners will have received a total 33% increase from their current pension, while death or survivor pensioners will have benefited from a 16% hike.
Sample
A monthly P2,200 pension active by Aug. 31, 2025 will get a 10% starting the following month.
Next year, the new base pension will get another 10% increase. The same will be observed for a third consecutive and final year, resulting in a new monthly P2,662 pension. — with reports from Dominique Nicole Flores
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