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How is SSS retirement pension computed?

Members of the Social Security System (SSS) often wonder how their retirement pensions are computed. Today’s column  will attempt to explain how the basic pension is arrived at following the provision of Section 12 of the SSS Act of 1997.

It says, the monthly pension shall be the highest of the following amounts: The sum of the following: P300; plus 20 percent of the average monthly salary credit (AMSC); plus 2 percent of the AMSC for each credited year of service (CYS) in excess of 10 years; or 40 percent of the AMSC; or minimum pension of P1,200 for members with at least 10 CYS; and P2,400 for those with 20 CYS.

Using these three computations, let us assume the case of someone who contributed for 25 years based on the AMSC of P16,000. Using the first formula, we have P300 + 20 percent (16,000) + [2 percent (16,000) x (25-10)]=P300 + P3,200 + [320 x15]=P8,300. The basic pension amount in this case is P8,300.

The second formula, which is 40 percent of the AMSC, will be 40 percent of  P16,000=P6,400.

Applying the third formula  would yield P2,400 as the basic pension. Since the law provides that the highest amount shall be granted as the pension, this means that the basic pension shall be P8,300.  If the retiree pensioner still has dependent children at the time of retirement, each dependent child, not to exceed five starting from the youngest, shall be entitled to a dependent’s pension, of 10 percent of the basic pension, or P250 per child, whichever is higher, until they reach the age of majority, get employed or get married.

It has often been said for every peso that a member contributes, he or she gets no less that P16 in return. Let us take, for example, the cases of Juan and Pedro. Juan has a monthly salary credit of P1,000 (the lowest salary level subject to the SSS contribution) and contributes to SSS based on this salary for 25 years, while Pedro has a monthly salary credit of P16,000 (the maximum salary as of to-date) and also contributes for 25 years. Juan’s monthly contribution of P110 would total P33,000 after 25 years of contribution to the SSS, while Pedro, whose monthly contribution of P1,7650, would sum up to  P528,000 after 25 years.

If they both file for retirement pension at the same time and receive pensions for 25 years, Juan, whose pension will amount to P2,400 per month, would have received a total of P780,000, while Pedro, whose monthly pension is P8,300, would have received P2,699,500 after 25 years.

Furthermore, if they both pass away and are survived by their legal spouses, their pensions will cross over to their spouses as their primary beneficiaries.

Indeed, the SSS is a good deal for its members, and may be considered the cheapest insurance in town!

For more details on SSS programs, members can drop by the nearest SSS branch, visit the SSS web site (www.sss.gov.ph), or contact the SSS call center at 920-6446 to 55, which accepts calls from 7 a.m. on Monday all the way to 7 a.m. on Saturday.

Susie G. Bugante is the vice president for public affairs and special events of the SSS. Send comments about this column to [email protected]

 

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  1. how about those who voluntarily pay for their monthly contributions? how would be the computation?

  2. 110 is 6% of 1760 and yet it gets 2400 which is 29% of 8300.isn’t that unfair to those who pay more? and i heard that there is a new rule that says if an individual pays 1760 during 60 consecutive months before retirement,his pension will be 8300 or 9900 (30 years contribution).that is a little discouraging to pay maximum contribution early.how did sss (or lawmakers) come up with that kind of formula? why not use the same rates for everyone?

  3. assuming u started contributing to sss at age 20 an ofw and opted to 550 per month for 34 years and then before you reach 55 yrs of age you increase your monthly contribution to maximum 1760 montly until you reach 60 yrs of age. SSS allows changing of monthly salary bracket if d person is below 55 yrs old. Total contribution will be 330,000. How much will be d monthly pension using d 1st formula.??

  4. I am a voluntary contributor..if i contribute 2400 for 120 months..how much pension would i recieve monthly..

  5. If anyone reaches 60 you go to sss and apply for a pension no matter how big or small the amount you contributed. The fact that you will enjoy the amount of your pension rather than paying to the sss to get more pension. Sss system more on contribution and they will earned when something bad happens to pensiobers.

  6. Paano poh pag nag open aq ng sss tpos ilagay kona yong pera as good for 10years like 36,000 or more. Ilang years po hintayin ko before mg file for pension?

  7. Sana 55years old pwede ng mag claim ng SSS pension kc mas prone na ngayon ang maagang mamatay hindi pa naabot ng 60 eh namatay ka na hindi mo na maenjoy yong sarili mong pinagpaguran.

  8. 180 month po ako na kapag hulog pero ang baba NG pension ko.. Di p umabot NG 6k..ano po b dapat Kong gawin..nangunguha ako NG records computation pero ayaw Nila akong bigyan..

  9. Tanong ko Lang po magkano pinsion Ng asawa ko mag 60 npo sya ngayong 8-28-21 naka 120 month npo sya daniel Traya CLoma nsme nya thanks

  10. how about the one who pays/contributed for only 120 months? salary ranging 16000-20,000, contributed amount 1000 up, what would be the computation for that?

  11. How about a paying
    family man who have paid only more than a year and died bco’z of an accident while on duty , Is his family entilled of any benefits? If so,what are those?

  12. His eldest child tried to file claim on burial and other benefits, sss staff in our locality said they will search first bcoz he is just temporary..i do not know what theymean of that.his child has a copy of.paid premiums of more than a year.on the time of death he is currently paying sss contibution.

  13. hello po nasa 174 month na yong hulog ko p.o. at nasa maximum yong hulog 2400 dahil nag avail ako ng flexi fund mag kano kaya Ang.magiging pension ko nasa 58 year na kasi ako ngayon piro tuloy parin hulog ko habang dito ako sa abroad.salamat po. wilfredo hones ng brunei

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