SSS hikes pension without increasing contribution

National

THE Social Security System (SSS) has launched a major pension reform program that will increase monthly benefits for over 3.8 million pensioners—without requiring a hike in member contributions.

In an official statement, SSS confirmed that the increase will be implemented in three phases, beginning in September 2025.

Retirement and disability pensioners will receive a 10% increase in their monthly benefits annually, while survivor pensioners will get a 5% boost, based on their pension status as of August 31 each year.

After three years, total adjustments will amount to a 33% increase for retirement and disability pensioners, and a 16% increase for survivor pensioners.

“This pension reform program is a step toward financial inclusivity, as it restores the purchasing power of our pensioners amid rising inflation,” said SSS President and CEO Robert Joseph De Claro.

He assured the public that the reform will not compromise the financial stability of the agency.

“We aim to extend fund life to 2053 through expanded coverage and improved collection efficiency,” he added.

The Department of Finance estimates that the reform will inject P92.8 billion into the economy between 2025 and 2027, further stimulating economic activity through increased pensioner spending.

Finance Secretary Ralph Recto welcomed the move, citing its positive impact on income security and economic growth.

“This pension increase empowers our senior citizens and disabled individuals with greater financial capacity, especially as life expectancy rises,” Recto said.

The Department emphasized that, unlike the P1,000 benefit increase in 2017—which led to a contribution hike—this new reform will not require any additional contributions from members.(Edmie Rocsan, UV Comm Intern)