banner image
Outsourcing Alert

SSS to roll out historic pension reform program starting September 2025; three-year pension increase to benefit all types of pensioners

The Social Security System (SSS) will implement a landmark Pension Reform Program starting September 2025. Supported by comprehensive actuarial studies, the program features a structured, three-year increase in pensions for all SSS pensioners – the first multi-year adjustment of its kind in the institution’s 68-year history.

The SSS Pension Reform Program was approved by the Social Security Commission (SSC) under Resolution No. 340-s.2025 dated 11 July 2025.  Corresponding SSS Circular on the Program shall be published accordingly in a newspaper of general circulation.

Anchored on Republic Act No. 11199 (Social Security Act of 2018), particularly Section 4 empowering the SSC to adjust pension benefits, this reform answers the long-standing call for higher pensions while ensuring the fund’s long-term stability.

Sample Pension Increases (2025-2027)

The table below illustrates the estimated pension increases for sample cases over the three-year implementation period (2025–2027).

Pension Increases from 2025 to 2027

The increases will be implemented in three annual tranches every September:

  • September 2025 (for pensioners as of 31 August 2025):
    • 10% increase – retirement and disability pensioners
  • 5% increase – death or survivor pensioners September 2026 (for pensioners as of 31 August 2026):
    • Additional 10% increase – retirement and disability pensioners
    • Additional 5% increase – death or survivor pensioners
  • September 2027 (for pensioners as of 31 August 2027):
    • Additional 10% increase – retirement and disability pensioners
    • Additional 5% increase – death or survivor pensioners

After three years, pensions will have increased by approximately 33% for retirement/disability pensioners and 16% for death/survivor pensioners.

Reform Principles

  • The program is guided by three principles:
  • Uplifting all pensioners through inclusive benefit adjustments.
  • Recovering from inflation to protect purchasing power.
    Promoting the value of working, saving, investing, and prospering, as mandated by RA 11199.

Impact and Financial Sustainability

According to the SSS Chief Actuary, the reform will result in only a manageable reduction of fund life from 2053 to 2049, offset by stronger cash flows from previous contribution reforms and enhanced collection efforts.

The reform will benefit over 3.8 million pensioners, including 2.6 million retirement/disability pensioners and 1.2 million survivor pensioners, and is projected to inject ₱92.8 billion into the economy from 2025 to 2027.

No Contribution Increase

This Pension Reform Program (PRP) will not necessitate any contribution increase unlike the ₱1,000 additional benefit allowance given to all pensioners starting 2017 that immediately required contribution increases to restore financial stability to the SSS fund.

Copy text of article