The Social Security System (SSS) will implement a landmark Pension Reform Program beginning September 2025, following the directive of President Ferdinand R. Marcos Jr. and the recommendation of Finance Secretary and SSS Commission Chairperson Ralph G. Recto.
Backed by comprehensive actuarial studies, the program introduces a structured three-year pension increase for all SSS pensioners—the first multi-year adjustment in the agency’s 68-year history. The reform was formally approved under Social Security Commission Resolution No. 340-s.2025 dated July 11, 2025, with a corresponding circular to be published in a newspaper of general circulation.
Anchored on Republic Act No. 11199 or the Social Security Act of 2018, the initiative responds to long-standing calls for higher pensions while ensuring the fund’s long-term sustainability.
“We’ve heard the clamor for higher pensions loud and clear,” said SSS President and CEO Robert Joseph M. De Claro. “With the guidance of Secretary Recto and after thorough actuarial review, we are rolling out a rational and sustainable pension increase that uplifts all pensioners without compromising fund soundness.”
Pension Increases (2025–2027)
The increases will be granted in three tranches every September:
September 2025 (as of August 31, 2025):
- 10% increase – Retirement & Disability Pensioners
- 5% increase – Death/Survivor Pensioners
September 2026 (as of August 31, 2026):
- Additional 10% increase – Retirement & Disability Pensioners
- Additional 5% increase – Death/Survivor Pensioners
September 2027 (as of August 31, 2027):
- Additional 10% increase – Retirement & Disability Pensioners
- Additional 5% increase – Death/Survivor Pensioners
By 2027, total pensions will have risen by approximately 33% for retirement/disability pensioners and 16% for survivor pensioners.
Guiding Principles
The reform is built on three principles:
Inclusive adjustments to uplift all pensioners
Recovery from inflation to protect purchasing power
Promotion of saving, investing, and financial security, as mandated by RA 11199
Impact and Sustainability
SSS Chief Actuary reported that while the reform reduces fund life from 2053 to 2049, it remains manageable due to stronger cash inflows from prior contribution reforms and intensified collection efforts.
“Our actuarial team confirms that the fund remains financially sound,” De Claro emphasized. “We are committed to restoring fund life to 2053 through coverage expansion and better collection efficiency.”
The program is expected to benefit over 3.8 million pensioners—2.6 million retirees and disability pensioners, and 1.2 million survivor pensioners—and inject an estimated ₱92.8 billion into the economy from 2025 to 2027.
No Contribution Increase
Unlike the ₱1,000 across-the-board benefit granted in 2017, this Pension Reform Program will not require higher contributions, ensuring both immediate relief to pensioners and financial stability for the fund.
The SSS Pension Reform Program of 2025 stands as a historic milestone in Philippine social security, protecting the dignity and well-being of Filipino retirees and their families for generations to come.