All About SSS Pension Computation in the Philippines

Last updated: August 31, 2023

Written by: Alyssa Divina | Reviewed by: Mark Anthony

What is an SSS pension?

The pension is a monthly monetary benefit that the Social Security System (SSS) of the Philippines gives out to its members prior to the semester of retirement. This can be a monthly pension or a lump sum benefit.

The amount that a member will receive as pension will depend on their age upon retirement. There are two SSS retirement ages: 60 years old (optional) and 65 years old (mandatory). The optional retirement age of 60 is given that the member has completed at least 120 monthly contributions.

On the other hand, mining workers are exempted as they can retire at 55 (optimal age) or 60 and above (mandatory retirement age).

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Types of SSS retirement benefits

The SSS offers two types of retirement benefits for its members.

The first is a monthly pension, which is a lifetime cash benefit for a retired member with at least 120 monthly SSS contributions before the semester of retirement.

On the other hand, a lump sum amount will be given to a member-retiree who has not paid the required 120 contributions. The amount is equal to the member and his employer’s paid total contributions plus interest.

Member-retirees are entitled to receive a 13th month pension payable every December.

Other retirement benefits available to SSS members include automatic National health insurance membership for those who are not yet members after 65 years, hospitalization benefits for a retiree and their dependents (only available to those with 120 contributions), and dependent allowance equal to 10% of pension or Php 250.

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SSS retirement benefits requirements

There are two ways to qualify for SSS retirement benefits. First, you must be an SSS member that is aged 60 and have been separated from employment or self-employment. You must have made at least 120 monthly contributions before the semester of your retirement.

Another way you can qualify is if you are an SSS member who is 65 years old and employed or not. You must have at least 120 monthly contributions before your semester of retirement.

Other requirements for retirement benefits for employed, self-employed and voluntary members are the following:

• At least 55 years old and separated from employment or self-employment, if you’re an underground mineworker
• At least 60 years old, whether you’re still employed/self-employed or not, if an “underground mineworker” (technical retirement)
• You’re a total disability pensioner who has recovered from disability and is at least 60 years old (or at least 55 if an underground mineworker)
• A former retiree-pensioner whose monthly pension was suspended due to reemployment/self-employment and is now separated from employment or has ceased to be an SE
• A member who is 60 years old and above, but not yet 65, with 120 contributions or more may continue paying as VM up to 65 years old to avail of the higher amount of benefit

The SSS also has pension requirements for beneficiaries. To be considered a dependent, you must be:

A legitimate, legitimated, legally adopted, and illegitimate child who is:

• Unmarried
• Not gainfully employed
• Has not yet reached 21 years old; if already over 21 years old, you must be congenitally incapacitated or while still a minor when incapacitated
• A child who is in a common-law relationship and has not yet reached 18 years old

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How to compute your monthly SSS pension

There are three formulas that you can use to calculate your SSS pension:

Php 300 + 20% of your average monthly salary credit (AMSC) + 2% of the AMSC for each credited years of service (CYS) in excess of 10 years
40% of your AMSC

Php 1,200 if you have at least 10 CYS or Php 2,400 if you have at least 20 CYS

Here are the formulae in table format:

Alternatively, if you don’t have the time to compute your SSS pension, you can consult the SSS Retirement Benefit Estimator at sss.gov.ph

To compute your estimated SSS pension, just input your date of birth, the month and year that you started as an SSS member (started working or started your business), and your monthly salary or earnings. You will receive an approximate pension figure based on these criteria.

The calculator will also show two pension figures: your monthly pension when you retire at 60, and your monthly pension when you retire at 65. The latter amount is higher.

Take note that the computed amount of retirement benefits is just an estimate and may differ from the actual amount.

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How to apply for an SSS pension

If you’re looking for a copy of the SSS retirement form, you can go to the SSS website. You can also click here for a downloadable format.

Applying for an SSS pension is a lot easier now thanks to the Internet.

Here’s how you can apply for an SSS retirement benefit or claim online!

1. Go to the My.SSS member portal at www.member.sss.gov.ph then log in to your account. If you don’t have a My.SSS account yet, you can register using your email address.
2. Go to the E-Services menu. Enroll your disbursement account/s in the Disbursement Account Enrollment Module (DAEM).
3. Once you have approved DAEM account/s, you can file your retirement claim form under the SSS E-Services menu.
4. Once approved, you will receive your retirement benefit on your chosen disbursement account. The benefit will be remitted to your designated bank.

In addition, you can receive your SSS retirement benefit in two ways.

If you opt for the lifetime monthly pension, you will receive your benefit right after filing for a retirement claim.
If you choose the lump sum payment option, you can receive the first 18 months of your pension at a discounted rate. It will resume on the 19th month.

Take note that the benefits of monthly pensioners will be suspended if they reach the age of 60 and choose to work again.

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How to increase your SSS pension

Having a stable pension will greatly help retirees enjoy their post-working years. They don’t have to worry about their lifestyles if their retirement benefits are big enough to cover their daily expenses.

But what if you’re worried about your pension not being able to sustain your retirement? Here are some tips on how to increase your SSS pension!

– Pay the maximum amount of contributions based on your monthly salary credit.

– Make more monthly contributions. This will form the basis of your accredited year of service.

– Pay your SSS loans diligently and on time to avoid penalties.

– Make sure that you’re paying your SSS contributions continuously to get a higher average monthly salary credit.

The SSS also offers pension loans for senior citizens online. Under the enhanced Pension Loan Program (PLP), qualified retirement pensioners can avail of loans equal to 3, 6, 9 or 12 times their basic monthly pension (BMP) plus a Php 1,000 benefit. The loanable amount must not exceed the maximum limit of Php 200,000.

To qualify for PLP, a retirement pensioner:

– Must be 85 years old at the end of the last month of the loan term

– Must not have any outstanding SSS loan balance and benefit overpayment payable

– Must not have any existing advance pension under the SSS Calamity Assistance Package

– Must be receiving their regular monthly pension for at least 1 month with an active status

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