Social Security Pension set for significant increase, commencement from September 2025
The Philippines' Social Security System (SSS) has announced a significant three-year pension increase, starting from September 2025. This historic reform program will benefit all 3.8 million SSS pensioners without raising contribution rates.
Details of the Pension Reform Program
The reform, known as the Pension Reform Program, was approved by the Social Security Commission (SSC) in July 2025 under Resolution No. 340-s.2025. It aligns with Republic Act No. 11199 (Social Security Act of 2018), which empowers the SSC to adjust pensions.
Pension Increases for Retirement and Disability Pensioners
Retirement and disability pensioners will receive a 10% increase annually for three years (2025, 2026, and 2027). This means that by the end of the three-year period, retirement and disability pensions will have increased by about 33%.
Pension Increases for Death or Survivor Pensioners
Death or survivor pensioners will receive a 5% annual increase, amounting to about 16% total by 2027.
Implementation of the Pension Increases
The pension increases will be implemented each September in 2025, 2026, and 2027. The increases will be applied simultaneously to all pension types but at different rates: 10% per year for retirement and disability pensions; 5% per year for death/survivor pensions.
Impact on the SSS Fund
Despite the increase in payouts, the SSS fund remains financially sound. The pension reform is expected to inject P92.8 billion into the economy over the three-year period. The increase is structured to maintain the SSS fund's actuarial soundness and long-term stability.
Benefiting 3.8 Million Pensioners
The reform covers all 3.8 million pensioners as of August 31, 2025. Average retirement pensioners currently receiving about PHP 4,923 monthly can expect pensions to increase to approximately PHP 6,548 after the full three-year raise—a PHP 1,625 increase or 33% rise.
Improving Income Security and Standard of Living
The increase aims to improve income security and the standard of living of pensioners, especially as life expectancy rises. SSS president and chief executive officer Robert Joseph De Claro stated that the increase is rational and sustainable.
The First Multi-Year Adjustment in SSS's 68-Year History
This is the first multi-year adjustment in the SSS's 68-year history. The agency plans to recover the shortened fund life through expanded coverage and improved collections.
This historic pension increase follows President Ferdinand Marcos Jr.'s directive and discussions with Finance Secretary Ralph Recto. The reform was approved by the Social Security Commission (SSC) under Resolution No. 340-s.2025. There will be no need for a contribution increase in the new measure. In September 2027, pensioners as of Aug. 31, 2027 will receive an additional 10% increase for retirement and disability pensions and an additional 5% increase for death or survivor pensions.
[1] Social Security System. (2025). Pension Reform Program. Retrieved from www.sss.gov.ph/pensionreform
[2] Philippine Star. (2025). SSS to give pensioners 33% hike over 3 years. Retrieved from www.philstar.com/business/2025/07/20/1993365/sss-to-give-pensioners-33-hike-over-3-years
[3] Rappler. (2025). SSS to raise pensions by 33% over 3 years. Retrieved from www.rappler.com/business/689902-sss-to-raise-pensions-by-33-over-3-years
[4] Inquirer.net. (2025). SSS to give pensioners 33% hike over 3 years. Retrieved from business.inquirer.net/305205/sss-to-give-pensioners-33-hike-over-3-years
[5] ABS-CBN News. (2025). SSS to increase pensions by 33% over 3 years. Retrieved from news.abs-cbn.com/business/07/20/25/sss-to-increase-pensions-by-33-over-3-years
In compliance with the Pension Reform Program, the Philippines' Social Security System (SSS) plans to increase pensions by 33% for all 3.8 million pensioners over a three-year period, starting from September 2025. This reform, expected to inject P92.8 billion into the country's economy, will not necessitate a rise in contribution rates.
