Computation for the SSS Monthly Pension 2025 & the Possible Deductions
SSS MONTHLY PENSION 2025 – Here is a guide on how much you may get under the Retirement Benefit offer of the Social Security System.
In the Philippines, one of the social insurance giants is the SSS or the Social Security System. It has millions of members coming from different walks of life. Undeniably, most of the SSS members are individuals who are working or have worked in the private sector.
An SSS membership widens the financial resources of the members, thus, a membership to the social insurance entity is mandated in most private companies and offices. The membership is also open to overseas Filipino workers, non-working spouses of SSS members, household helpers, and for voluntary cases.
The SSS has several loans as well as benefit offers. One of the benefits provided by the social insurance entity is the Retirement Benefit. It is a cash benefit that can be paid through a monthly pension or a lump sum when a member decides to retire from work due to old age.
Under the said benefit offer, a member may qualify for either the SSS Monthly Pension or a Lump Sum. Undeniably, the continuous mode of the former is what many members aspire to have when they reach their seniority.
The SSS Monthly Pension is a lifetime cash benefit paid to a retired member of the Social Security System on a regular basis. Retiring members who have at least 120 monthly contributions prior to the semester of retirement may qualify for it. In case the retiring member has less than 120 monthly contributions, he/she may avail the SSS Lump Sum.
How much you may get under the SSS Monthly Pension? According to SSS, the retiring member will get amount that is equivalent to the highest result of the following formula:
- 300 + (20% x AMSC*) + (2% x AMSC) x (CYS** – 10); or
- 40% x AMSC; or
- Minimum pension (P1,200 if with at least 10 CYS or P2,400 if with at least 20 CYS).
*AMSC (Average Monthly Salary Credit)
**CYS (Credited Years of Service)
According to the Social Security System, a member may opt to get an 18-month pension in advance as a lump sum. However, it is important to know that it will have to bear an interest that is based on the preferential rate of the social insurance entity. In case you wish to have an 18-month pension, it should be coordinated with the social insurance giant upon the filing of the initial retirement claim.
There are also deductions that retiring members of the Social Security System must be aware of. Here is a guide on these possible deductions:
- all unpaid short-term member loans of members claiming for retirement benefit, whether or not the term of payment has expired as of contingency date, shall be deducted in full from the proceeds of the benefit payments.
- amount of settled unemployment benefit may be deducted, either in partial or full, from the retirement benefit/s of the member in the event of the following:
- when the involuntarily separated employee files a case/complaint against his/her employer and the final and executory resolution thereof showed:
- that substantive and procedural due process was complied with in the termination of employment based on any of the just cause/s under Article 297 (282) of P.D. No. 442 or the Labor Code of the Philippines, as amended; or
- that the case/complaint resulted in re-instatement of the involuntarily separated employee with payment of backwages; and
- when the employee is rehired or re-employed within the compensable period, or within two (2) months from the date of involuntary separation.
- when the involuntarily separated employee files a case/complaint against his/her employer and the final and executory resolution thereof showed:
- overlapping sickness and partial disability benefits shall be deducted from the proceeds of the benefit payments
- overpaid pension due to dependent’s death, employment or marriage shall be deducted from the monthly pension
Aside from the SSS Monthly Pension, there are additional benefits for the retiring members under the SSS Retirement Benefit offer. According to the social insurance entity, a retiree is entitled to a 13th month pension that is payable every December. All pensioners are also entitled to receive P1,000 additional benefit on top of their monthly pension.
Furthermore, if the retiree has dependents, his/her dependents may qualify to the Dependent’s Pension offered by the Social Security System. Thus, it is important to know who are qualified under the SSS Dependent’s Pension.