Got Enough for Retirement? Check This SSS Pension Computation Guide

Venus Zoleta

Venus Zoleta

Last updated September 09, 2022

It’s better to just set things straight right away: the SSS pension won’t be enough to fund retirement. So as early as now, young Filipinos should invest in a retirement savings plan to provide for the future and live comfortably in their golden years.

All SSS members should also learn how to compute their SSS pension since it will become a consistent source of income when they’re past their prime. The amount members will receive may not be ideal for an extravagant lifestyle, but it’s better than not receiving any pension at all.

To ensure that SSS members receive significant benefits once they retire, they should continuously and consistently pay their contributions. Currently, the contribution rate is 13% percent of an employee’s monthly salary credit and will increase by 1% every other year until 2025. 

How will this affect the SSS pension in the future? It's important to set expectations right and know just how much you can get when the time comes. So get your calculators ready and learn about SSS pension computation with this guide. 

How to Compute SSS Pension

There are two ways to calculate a member’s monthly SSS pension: manually or online using the SSS website.

Manual SSS Pension Computation

sss pension computation - sss pension manual calculator

The big question in every SSS member’s head is, "How much is my SSS pension?" The SSS monthly pension will depend mainly on the paid contributions, the number of active years as an SSS member, and the number of dependent minor children.

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

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

Let’s focus on the first SSS pension formula since the computation will more likely give 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 ₱30,000 and has contributed to the SSS for 40 years. According to the current SSS contribution table,[1] his AMSC is ₱20,000.

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

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

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

MP = ₱300 + ₱4,000 + ₱12,000 + ₱1,000

Monthly SSS Pension = ₱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.

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 SSS pension. Try the SSS Retirement Benefit Estimator,[2] a nifty SSS pension calculator on the SSS website. 

Just enter the birth date of the SSS member, the month and year they started as an SSS member, and the monthly salary. Then enter the captcha code and click the Compute button.

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


Who is Qualified for SSS Retirement Benefits?

sss pension computation - SSS pension qualifications

SSS pension comes as a cash payment that members will receive when they can no longer work because of old age. To qualify for retirement benefits, the SSS member must be:  

  • 60 years old, neither employed nor  self-employed; with at least 120 monthly SSS contributions prior to the semester of retirement
  • 65 years old, employed or not; with at least 120 monthly SSS contributions prior to the semester of retirement

What are the SSS Pension Requirements?

Before filing for retirement benefits, prepare the following SSS retirement claim requirements:

  • Completed Retirement Claim Application (RCA) Form[3] or Application for DDR Benefit Form[4] (under the Portability Law, if applicable)
  • SSS ID, UMID card, or SS Form E-6 Acknowledgment Stub with two valid IDs (at least one with a photo and signature). See the complete list of accepted IDs here[5]
  • Original and photocopy of passbook/ATM card with name, or copy of bank-validated deposit slip or Cash Card Enrollment form
  • 1 x 1 photo

If a representative will file for a retirement claim on behalf of a retiree-member, prepare the following additional requirements for the SSS pension application:

  • Authorized representative's primary ID (SSS ID, UMID, PRC card, Seaman's Book, or Alien Certificate of Registration) or two secondary IDs
  • Letter of Authority (LOA) with the SSS member's signature or Special Power of Attorney (SPA) that specifically states the authority to file on behalf of and sign for the member

The SSS requires additional supporting documents for special cases (like members aged 60 to 64, SSS employees, underground mineworkers, etc.). 

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

SSS Pension Application

SSS members have two options for filing a retirement claim: over-the-counter application and online application using the My.SSS portal.

If the member applies personally or through a representative, they must submit all the documentary requirements at the nearest SSS branch.

Qualifying Conditions for Filing an SSS Retirement Claim Online

The SSS also has the following conditions before members can apply online:

  • They should have a disbursement account enrolled in My.SSS's Bank Enrollment Module (UMID-ATM, UBP Quick Card, or any PESONet-accredited bank).

If the SSS member is applying for a monthly pension: 

  • At least 120 monthly SSS contributions before the semester of claiming

If the SSS member is filing for a lump sum benefit: 

  • At least one posted monthly contribution
  • No dependent child/children 
  • No outstanding loan balance under the Vocational Technology Loan, Educational Loan, Stock Investment Loan, or Privatization Fund Programs
  • No canceled or multiple SSS number/s

Read more: 

SSS Online Pension Application

Here are the steps to file for a retirement claim via My.SSS Portal:

  1. Visit the SSS website at www.sss.gov.ph and log in to My.SSS. 
  2. Click Member Account. 
  3. Click Submit Retirement Claim Application under the E-Services tab. 
  4. For Covered Employee, enter the date of separation. 
  5. Check that the address, contact information, employment history, and other personal details are correct. Then proceed to check your eligibility for the retirement benefit. 
  6. Answer the questions regarding employment as a mineworker and racehorse jockey and having dependent children. 
  7. If qualified, you'll receive the proceeds in your UMID-ATM, or the bank account enrolled in the Bank Enrollment Module. 

How You Will Receive Your SSS Pension?

When making an SSS retirement claim, members will be required to open a single savings account and submit a photocopy of their passbook, ATM card, initial deposit slip, bank statement, or Visa Cash Card enrollment form.

The SSS will remit the pension through the designated bank (ideally, the branch nearest to where the member lives). The SSS retirement benefits can be received in two ways:

  • Lifetime monthly pension. The monthly pension will start after applying for the retirement benefit. But if the member reaches 60 and decides to work again, the monthly payment of pension will be suspended until they reach 65.
  • Lump-sum payment. Members can also choose to receive the first 18 months of pension at a discounted rate determined by the SSS. The monthly pension will then resume on the 19th month and onward.

The lump sum meaning in SSS is the amount equal to the total contributions paid by the member and the employer, including interest.

Possible Deductions in SSS Retirement Benefit

Some members may not receive the monthly pension in full because SSS deducts the following when applicable:

  • All unpaid SSS loans
  • Overlapping SSS sickness and partial disability benefits
  • Overpaid pension due to dependent’s death, employment, or marriage

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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 not already a member after 65 years
  • PhilHealth hospitalization benefits for the member and their dependents (only if there are at least 120 PhilHealth contributions made)
  • Dependents allowance equal to 10% of the pension or ₱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 the SSS member’s death, their primary beneficiaries listed as of the date of retirement will be entitled to 100% of their pension. 

If the member passes away 60 days from the start of the monthly pension and has 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.

Some Tips to Maximize Your SSS Retirement Benefit

When is it okay to stop paying SSS contributions? Can you withdraw SSS contributions after 10 years? According to SSS chief actuary Edgar Cruz, not all 40.97 million SSS members consistently pay, which puts retirement benefits at risk. An estimated 20 million members will not get significant insurance.[6]

Here are some tips to help beef up your SSS pension:

    1. Apply only when you're sure that you've paid the required minimum of 120 SSS contributions. This assures that you'll receive regular monthly pensions, better than one-time lump-sum cash paid to members with less than 120 contributions. Check your SSS contributions online to verify your total posted contributions.
    2. Keep paying your SSS contributions as a voluntary member until you reach the age of 65, even if you've already paid more than 120 contributions. This ensures a higher retirement benefit.
    3. You can choose to pay voluntary contributions for up to 120 months if you're 65 or older but haven't reached the required 120 monthly contributions. This way, you can fully enjoy the SSS retirement benefits through the monthly pension.
    4. Claim your SSS pension at age 65 (not earlier) if you plan to continue or resume regular or self-employment in your twilight years. SSS suspends the monthly pension of members below 65 who are returning employees.

SSS Pension Computation FAQs

1. How many months of contributions do you need to avail of the SSS pension?

You need at least 120 paid monthly contributions a semester before the scheduled retirement to receive a monthly pension. If the total SSS contributions don’t meet the required 120 contributions, the member will 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 your retirement benefit using the SSS pension calculator for voluntary members. The SSS pension requirements for voluntary members are also the same.

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.” [7]

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 the 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. How much 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 ₱18,495. The minimum monthly pension is ₱2,000. 

6. When is the best time to claim your SSS pension? 

At what age should you get your SSS pension? At 60, 65, or older? Doing so at age 65 or older is better because members can increase their contributions before retirement for a higher pension.

On the other hand, filing for the SSS retirement benefit sooner also has its advantages. Qualified dependents will receive 10% of the retiree's pension. In case of the pensioner's death, the primary dependents will get a 100% monthly pension.

7. What is the technical retirement age of a mineworker?

Sixty years old is the technical retirement age for underground mineworkers who have paid less than 120 monthly contributions. For optional retirement, it’s 55 years old. But they’ll also be allowed to continue their contributions as a voluntary member until they complete the 120 contributions to enjoy full pension benefits. 

Final Thoughts

If you have parents or other older family members who have been paying SSS contributions for years and are nearing retirement, this guide should give you the basics of SSS pension computation and answers to frequently asked questions about SSS pension. 

As earlier mentioned, the SSS retirement benefit won’t be enough to fund their daily living expenses during their retirement years, but it can supplement another pension or retirement fund. 

As early as now, start mapping out your own golden years. To supplement the SSS pension, consider investing in stocks and real estate and build your retirement fund

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Venus leads the blog content strategy and optimization at Moneymax as the Head of Editorial Content. She has 15+ years of experience in content marketing, corporate communications, and public relations. Venus graduated cum laude with a Journalism degree from the University of the Philippines Diliman. Before joining Moneymax, Venus had written informative guides and articles, specializing in personal finance and digital marketing. She also invests in stocks, mutual funds, VUL, and Pag-IBIG MP2. A hardcore Hallyu Tita, she enjoys bingeing K-dramas on Netflix while bonding with her rescued cats. Follow Venus on LinkedIn.