SSS Pension Computation

It’s better to just set things straight away: the pension you’ll receive from the SSS won’t be enough to fund your retirement plan. As early as now, invest in a retirement savings plan to provide for your future self to live comfortably beyond 60 years.

Having said that, you should learn how to compute your SSS pension since it will become a consistent source of income when you’re past your prime. The amount you’ll receive may not be ideal for an extravagant lifestyle, but it’s better than not having any pension at all.

As per Republic Act 11199 or the Social Security Act of 2018, SSS monthly premiums increase by 1% every other year until 2025. However, the Senate has recently approved Senate Bill 2027 that seeks to authorize the President to hold off the SSS contribution hike for a limited period of six months. The deferment could be extended for a further six months.[1]

How will this contribution hike affect your SSS pension in the future? If you want to know how to compute your retirement pay from SSS, keep reading. Get your calculator ready and start planning the future with this helpful SSS pension computation guide.

How to Compute Your SSS Pension

There are two ways to calculate your monthly SSS pension. You can either compute manually or online using the SSS website.

Manual SSS Pension Computation

SSS Pension Computation Guide for Retirement Planning - sss pension manual calculator

The big question you’re probably asking yourself is, “How much is my SSS pension?” Your SSS monthly pension will depend largely on your paid contributions, your number of active years as an SSS member, and the number of your dependent minor children.

There are three formulas used to compute your SSS pension, but whichever yields the highest amount will determine your final pension.

  1. PHP 300 + 20% of average monthly salary credit (AMSC) + 2% of AMSC for each credited year of service (CYS) in excess of ten years + PHP 1,000
  2. 40% of the average AMSC + PHP 1,000
  3. PHP 1,200 if CYS is somewhere between 10-20 years; PHP 2,400 if CYS is 20 years or more + PHP 1,000

Let’s focus on the first SSS pension formula since it’s the computation that will more likely give you the highest possible pension. As you can see, it can be confusing to comprehend on paper. So let’s apply the formula in a specific scenario.

For example, Senior Citizen John is earning PHP 30,000 and has contributed to the SSS for 40 years. According to the current SSS contribution table,[2] his AMSC is PHP 20,000.

Here’s how his SSS pension computation will look like:

Monthly Pension (MP) = PHP 300 + (20% of AMSC) + [2% of AMSC x 30 years (40 years – 10)] + PHP 1,000

MP = PHP 300 + (0.20 x 20,000) + (0.02 x 20,000 x 30) + PHP 1,000

MP = PHP 300 + PHP 4,000 + PHP 12,000 + PHP 1,000

Monthly SSS Pension = PHP 17,300*

*Note: This SSS pension computation doesn’t account for inflation. For a more accurate estimate of your expected pension, consult your local SSS office.

Read more: 3 Simple Ways to Check Your SSS Contributions Online

Online SSS Pension Calculator

SSS Pension Computation Guide for Retirement Planning - SSS online pension calculator

But if numbers scare you and SSS pension tables look too complicated, there’s an easier way to calculate your SSS pension. Try the SSS Retirement Benefit Estimator,[3] which is a nifty SSS calculator for pension found on the SSS website. 

Just enter your birth date, the month and year when you started as an SSS member, and your current monthly salary. Then enter the captcha code and click the Compute button.

The SSS pension calculator will show you two sets of SSS monthly pensions: one for when you retire at age 60 and another for when you retire at 65. The SSS pension is higher if you choose retirement at age 65.

Read more:

Who is Qualified for SSS Retirement Benefits?

SSS Pension Computation Guide for Retirement Planning - SSS pension qualifications

Your SSS pension comes as a cash payment you’ll receive when you can no longer work because of old age. There are two ways to qualify for retirement benefits. 

  • You are an SSS member, are aged 60, have separated from employment or stopped being self-employed, and have made at least 120 monthly SSS contributions prior to the semester of retirement.
  • You are an SSS member, are aged 65 years old, are employed or not, and have made at least 120 monthly SSS contributions prior to the semester of retirement.

All retirement benefits claims can be filed at any SSS branch or representative office.

Read more: SSS Online Registration: A Simple Step-by-Step Guide

How You Will Receive Your SSS Pension

When you make your retirement benefits claim, the SSS will require you to open a single savings account and submit a photocopy of your passbook, ATM card, initial deposit slip, bank statement, or Visa Cash Card enrollment form.

The SSS will remit your pension through your designated bank (ideally the branch nearest to you). You can receive your retirement benefits in either of these two ways.

  • Lifetime monthly pension. Your monthly pension will start after you apply for your retirement benefit. But if you reach 60 and decide to work again, the monthly payment of your pension will be suspended until you hit 65.
  • Lump-sum payment. You can also choose to receive the first 18 months of your pension at a discounted rate determined by the SSS. Your monthly pension will then resume on the 19th month and onward.

Read more: 

Other SSS Retirement Benefits in the Philippines

The SSS Retirement Program provides more than just pension. Retirees will receive other benefits, such as the following: 

  • 13th month pension every December
  • Automatic PhilHealth membership if you aren’t already a member after 65 years
  • PhilHealth hospitalization benefits for you and your dependents (only if you made at least 120 PhilHealth contributions)
  • Dependents allowance equal to 10% of your pension or PHP 250, whichever is higher. The allowance is limited to five children only, regardless of actual blood relation or legitimacy. They will keep receiving an allowance until their 21st birthday.

Upon your death, your primary beneficiaries listed as of the date of retirement will be entitled to 100% of your pension. Should you pass away 60 days from the start of the monthly pension and have no primary beneficiaries listed, the secondary beneficiaries will be awarded a lump-sum SSS benefit equal to the five-year guaranteed period, excluding the dependents’ pension.

Read more:

SSS Pension Computation FAQs

1. How many contributions should I have to receive an SSS pension?

You need at least 120 paid monthly contributions a semester before your scheduled retirement to receive a monthly pension. If your total SSS contributions don’t meet the required 120 contributions, you’ll receive a lump-sum amount instead. 

2. How to compute the SSS pension of voluntary members? 

The same SSS pension computation above applies to voluntary members as well. You can try computing for your retirement benefit using the SSS pension calculator for voluntary members.

3. How to compute for the AMSC in SSS? 

The Average Monthly Salary Credit is computed by “dividing the sum of the last sixty (60) monthly salary credits immediately preceding the semester of contingency by sixty (60), or the result obtained by dividing the sum of all the monthly salary credits paid prior to the semester of contingency by the number of monthly contributions paid in the same period, whichever is greater.” [4]

This means that if your Monthly Salary Credit as an employed SSS member is 20,000, multiply this number by 60 or by the number of paid monthly contributions made a semester before contingency (or two consecutive quarters before retirement). This will be your AMSC.

4. How to compute SSS pension for OFWs? 

The same computation illustrated above applies to OFWs. Try doing your own calculations with the help of the pension calculator from SSS. 

5. What is the maximum SSS pension?

The computation of your SSS pension is based on the monthly salary credit and the number of years that you paid your SSS contributions. The higher the MSC and the longer you pay your contributions, the higher your SSS monthly pension will be. Retirees in the Philippines can receive as much as PHP 18,495 and as low as PHP 2,000 as a monthly pension. 

Final Thoughts

It’s never easy to talk about things like retirement. But you should have a general idea of what to do when you grow old. As early as now, start mapping out your golden years, and a great way to start is to know the basic SSS retirement computation. 

Hopefully, from there, you’ll start learning about the importance of savings, life insurance, and investments. Not only will this make your 60s a lot easier to live through. You’ll also provide your children and their children financial support even after you leave this place.