SSS to roll out yearly pension hike until 2027
The Social Security System (SSS) has announced an increase in pensions phased over three years starting this September, benefiting millions of pensioners without requiring an increase in member contributions.
In a statement on Thursday, the state-run pension fund for private sector workers said that by the end of the three-year adjustment period, monthly payouts will have increased by approximately 33 percent for retirement and disability pensioners, and by 16 percent for death and survivor pensioners.
Unlike the 2017 pension hike, which immediately triggered contribution increases to shore up the fund’s finances, SSS said the phased adjustments will not require higher fees from active members.
Tranches
SSS said the pension increases will be rolled out in three annual tranches every September, starting this year until 2027.
Retirement and disability pensioners as of Aug. 31 this year will get a 10-percent increase, while death or survivor pensioners will have a 5-percent increase.
Pensioners as of Aug. 31, 2026, and as of Aug. 31, 2027, will also receive the same increase beginning September 2026 and September 2027.
For example, a retirement pensioner currently receiving P2,200 per month would see their pension increase to P2,420 in September 2025 following a 10-percent adjustment. Another 10-percent hike in September 2026 would raise the monthly pension to P2,662.
By September 2027, with the final 10-percent increase, the monthly payout would be P2,928. Over the three-year period, this amounts to a total increase of P728, or 33 percent from the original amount.
SSS said this is the first multiyear adjustment of its kind in the institution’s 68-year history, adding that the increase was “supported by comprehensive actuarial studies.”
It was in line with the directive of President Marcos and following the guidance of Finance Secretary Ralph Recto, the chair of the Social Security Commission.
Fund life reduction
According to the SSS chief actuary, the reform will result in “only a manageable” reduction of fund life to 2049 from 2053. This will be offset by “stronger cash flows from previous contribution reforms and enhanced collection efforts.”
“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,” he added.
SSS said the multi-year pension hike will benefit over 3.8 million pensioners and is expected to inject P92.8 billion into the economy from 2025 to 2027.
Hike during Du30 term
The last across-the-board pension increase was in 2017 under then President Rodrigo Duterte, who approved a P1,000 hike in monthly benefits. However, that increase was accompanied by a 1.5-percentage point rise in member contributions.
A second P1,000 increase was originally planned for 2022 to fulfill the previous administration’s promised P2,000 total hike, but its implementation was delayed due to concerns over its impact on the SSS fund’s sustainability and the potential burden on members through higher premiums.
Asked about the status of the second tranche of the Duterte-era hike, Recto told the Inquirer: “I am not aware of what they promised.”
De Claro, meanwhile, said the SSS “heard the clamor for higher pensions loud and clear.”
“We are rolling out a rational and sustainable pension increase that uplifts all pensioners without compromising the fund’s actuarial soundness,” he added.
