SSS Pension

As paying members of the Social Security System (SSS), we are all looking forward to that day when we can just sit back, relax, and wait for our monthly pension to arrive.  We count the years until we are prepared to retire from our jobs and finally be able to take that much needed vacation, spend quality time with our children, and no longer be bothered by “work”.  We look forward to that day when we can finally ask ourselves, “What do I do with all these free time on my hands?”

But the question we should all be asking at this point is, how much must I expect as monthly pension from the SSS and will that be enough to sustain my needs as I approach my senior years?

To help you determine your monthly pension, here is a guide lifted from the SSS website and a recent article from the Manila Bulletin.


Are you under the Compulsory or Voluntary program of the SSS?

The Compulsory program covers employers and their employees, as well as self-employed individuals.  Their contributions are automatically deducted from their monthly salaries and remitted by their employers to SSS.

Voluntary members are OFWs, non-working spouses of SSS members, and members who have separated (resigned) from their jobs.  They pay their monthly contributions “voluntarily” by going to SSS offices or accredited payment centers.

Apart from the two programs, SSS also encourages its members to establish a separate savings account under the SSS Personal Equity and Savings Option (PESO) to add to their retirement funds.  This is a tax-free investment fund that can earn income based on interest rates of five-year Treasury yields.  At a minimum amount of Php 1,000 per month, a qualified SSS member is able to basically double his SSS savings.


A member’s pension is determined based on the number of credited years of service (CYS) and the number of dependent minor children.

There are three formulae that the SSS uses to compute for a member’s pension; the monthly pension will be the highest amount resulting from any of the three formulae.

  1. The sum of = Php 300.00 + 20% of the Average Monthly Salary Credit (AMSC) + 2% of the AMSC for each Credited Year of Service (CYS) in excess of 10 years, OR
  2. 40 % of the AMSC, OR
  3. Php 1,200.00 if the CYS is at least 10 but less than 20.
  4. Php 2,400 if the CYS is 20 or more.

Note: The AMSC is determined by the SSS based on your monthly compensation.  Salaries from Php 15,750 and above are assigned an AMSC of 16,000.


Using formula number 1, here is a sample computation for an individual who:

  1. Is earning Php 30,000.00 monthly
  2. Has worked and contributed to the SSS for 40 years

Monthly Pension (MP) = P300 + (20% of AMSC) + (2% of AMSC x 30 years (40 years – 10))

MP = Php 300.00 + (20% x 16,000.00) + (2% x 16,000 x 30 years)

MP = Php 300 + 3,200 + 9,600

MP = Php 13,100.00


There are two ways to determine if you are qualified for SSS retirement benefits:

a. You are 60 years old and are no longer working or have ceased to be self-employed.  You have made at least 120 monthly contributions before the semester of retirement.

b. You are 65 years old – may be employed or not – and have made at least 120 monthly contributions before the semester of retirement.


There are also two ways to receive your retirement benefits:

a. Lifetime monthly pension – receive your pension monthly through the bank that you pick as your designated bank.

b. Lump sum – receive the first 18 months of your pension at a discounted rate determined by the SSS.  Your monthly pension will begin on the 19th month.


Be ready with the following IDs and documents when filing for your retirement benefits:

  1. Retirement claim application form (SSS Form DDR – 1);
  2. DDR Saving Account form;
  3. Certificate of Separation from last employer (for members less than 65 years old);
  4. Passbook (if pension);
  5. Certified true copies of birth or baptismal certificate of dependent children;
  6. Certificate of cessation of business or practice of profession (for self-employed less than 65 years old);
  7. Certified true copy of marriage certificate (if with dependent children);
  8. Proofs of filiation for illegitimate dependent children; and
  9. SSS digitized or E-6 (acknowledgment stub) with two valid IDs, one of which has a recent photo.

For a more thorough and accurate computation of your retirement benefit, visit the nearest SSS branch.