All About SSS Pension Computation in the Philippines
Last updated: June 2, 2023
Written by: Alyssa Divina | Reviewed by: Mark Anthony
- SSS retirement benefits help seniors live with peace of mind.
- They never have to worry about day-to-day expenses.
- Worried that your pension won’t be enough to cover everyday expenses?
- You can get a quick cash loan from Digido!
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).
→ Useful information about 24 hours payday loan
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 Philhealth 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.
→ Learn about bad credit personal loans with guaranteed approval
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:
- 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
→ Also read all about unemployment loans with no job verification
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:
|SSS MONTHLY PENSION FORMULAE FOR COMPUTATION|
|First formula||Php 300 + 20% of AMSC + 2% of the AMSC for each CYS|
|Second formula||40% of your AMSC|
|Third formula||Php 1,200 if you have at least 10 CYS;
Php 2,400 if you have at least 20 CYS
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.
→ Learn about Loyalty Cards in the Philippines
→ Learn about Fast Loan in 15 MinutesApply now
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.
→ Also learn more about fast student loans with no job
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
But if you’re already close to your retirement years and yet you don’t think that your pension will be enough to cover your day-to-day living expenses after retirement, then you can take out quick cash loans from Digido!
With Digido, you can get easy credit of Php 1,000 minimum and a maximum of Php 25,000 for repeat borrowers – in just five minutes wherever you are! No need to waste your time lining up in a bank!
Simply download the Digido app on your smartphone, sign up for an account, fill out the application form, attach personal and employment documents, and wait for your loan to be approved!
Digido will disburse your loan to your chosen bank account or e-wallet. You can also get your credit offline!
→ Also read all about quick personal loan app in the PhilippinesApply now
MaryVery efficient, fast reliable company. Reasonable rates with very friendly and accommodating customer service! I highly recommend it! 👍👍👍5
FrinaI like Digido loan site the most because they low interest rate within and had a prolongation service incase you can't meet your due, it really helps alot in time of need. In addition their loan process speed and disbursement is by far the fastest.5
AbigailOne of the Best Loan App. Reliable. Affordable Fees. Thanks, Digido.5
NonaIt's very easy to file a loan on this app and it's very convenient, you just need to wait a minute and there you go, loaned amount was already in your account. Thanks Digido, we can rely on this loan platform in times of needs. And it would be better if loan interest will be lessen a little bit.4
RollyHi everyone I could recommend this excellent apps coz the agents are approachable and answers the needs in times of emergency. They us give lower interest and loan prolongation in case you could not pay on time. Thanks to them and keep it up. Mabuhay!!!4
Disclaimer: This article was written based on information available to the writer at the time of publication and the article was published for promotional, reference, and educational purposes only. Nothing in the articles published in the website is intended to constitute legal or financial advice and users are advised to seek counsel from legal and financial professionals.
Likewise, rates or offers published in the websites are promotional marketing offers only and do not constitute any binding contract between the Corporation and the website users.While the writers and publishers of the articles in the website wrote the articles using credible information available to them at the time of publication, any changes or updates to the information presented in this article may not be reflected here.
Hence, users are enjoined to exercise appropriate diligence in using the data and information published in the website, and they are urged to study and compare it with other credible sources. Users understand that the writers, publisher, website owner and the Corporation are not liable for any damage or injury they sustained for their wrongful or erroneous use of the data or information written in the article and published in the website.