PENSION REFORM

The Social Security System (SSS) is set to implement a significant Pension Reform Program beginning September 2025, a move endorsed by President Ferdinand R. Marcos Jr. and discussed with Finance Secretary Ralph G. Recto. This initiative marks the first multi-year pension adjustment in the SSS’s 68-year history, supported by comprehensive actuarial studies.

The Social Security Commission (SSC) approved the program on July 11, 2025, under Resolution No. 340-s.2025. The reform is in line with Republic Act No. 11199 (Social Security Act of 2018), which empowers the SSC to adjust pension benefits, addressing calls for increased pensions while aiming to ensure the fund’s long-term stability.

SSS President and CEO Robert Joseph M. De Claro stated, “We’ve heard the clamor for higher pensions loud and clear”. He added that with the guidance of Finance Secretary and SSC Chairperson Ralph G. Recto, and following careful actuarial review, the SSS is implementing “a rational and sustainable pension increase that uplifts all pensioners without compromising the fund’s actuarial soundness”.

Pension Increases from 2025 to 2027

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

• September 2025 (for pensioners as of August 31, 2025):
  • 10% increase for Retirement and Disability Pensioners
  • 5% increase for Death or Survivor Pensioners
• September 2026 (for pensioners as of August 31, 2026):
  • Additional 10% increase for Retirement and Disability Pensioners
  • Additional 5% increase for Death or Survivor Pensioners
• September 2027 (for pensioners as of August 31, 2027):
  • Additional 10% increase for Retirement and Disability Pensioners
  • Additional 5% increase for Death or Survivor Pensioners

Upon completion of the three-year implementation, pensions for retirement and disability pensioners will have increased by approximately 33%, while death or survivor pensioners will see an increase of about 16%.

For example, a minimum retirement pension of P2,200.00 in June 2025 is projected to increase to P2,928.20 by September 2027, representing a 33.1% increase. Similarly, an average survivorship pension of P4,170.97 in June 2025 is estimated to rise to P4,828.42 by September 2027, an increase of 15.8%.

Reform Principles and Financial Sustainability

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

According to the SSS Chief Actuary, the reform is anticipated to result in a manageable reduction of the fund life from 2053 to 2049. This is expected to be offset by stronger cash flows resulting from previous contribution reforms and enhanced collection efforts. De Claro affirmed the fund’s financial soundness, stating, “We are committed to restoring fund life back to 2053 through coverage expansion and improved collection efficiency”.

The reform is expected to benefit over 3.8 million pensioners, including 2.6 million retirement/disability pensioners and 1.2 million survivor pensioners. The program is also projected to inject P92.8 billion into the economy between 2025 and 2027.

Notably, this Pension Reform Program will not require any increase in contributions, unlike previous benefit adjustments that necessitated contribution increases to maintain the SSS fund’s financial stability. The SSS views this program as a historic step toward a more inclusive and responsive social security system for Filipino retirees and their families.