The Social Security System (SSS) announced the implementation of a three-year reform program, increasing the pension for retirement and disability pensioners by 10% annually until 2027.

SSS said its Pension Reform Program was approved by the Social Security Commission (SSC) under Resolution No. 340-s.2025 dated July 11, 2025.

The pension adjustments will be implemented beginning September 2025.

The pension fund said the pension reform is “the first multi-year adjustment of its kind in the institution’s 68-year history.”

“We’ve heard the clamor for higher pensions loud and clear,” said SSS president and CEO Robert Joseph De Claro.

“With the guidance of Finance Secretary and SSC Chairperson Ralph G. Recto, and after careful actuarial review, we are rolling out a rational and sustainable pension increase that uplifts all pensioners without compromising the fund’s actuarial soundness,” said De Claro.

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

September 2025 (for pensioners as of 31 August 2025):

• 10% increase – Retirement and Disability Pensioners
• 5% increase – Death or Survivor Pensioners

September 2026 (for pensioners as of 31 August 2026):

• Additional 10% increase – Retirement and Disability Pensioners
• Additional 5% increase – Death or Survivor Pensioners

September 2027 (for pensioners as of 31 August 2027):

• Additional 10% increase – Retirement and Disability Pensioners
• Additional 5% increase – Death or Survivor Pensioners

After three years, pensions will have increased by approximately 33% for retirement/disability pensioners and 16% for death/survivor pensioners, according to SSS.

The table below illustrates the estimated pension increases for sample cases over the three-year implementation period.

SSS said the pension reform program is guided by three principles:

• Uplifting all pensioners through inclusive benefit adjustments.
• Recovering from inflation to protect purchasing power.
• Promoting the value of working, saving, investing, and prospering, as mandated by RA 11199.

According to the SSS Chief Actuary, the reform will result in only a manageable reduction of fund life from 2053 to 2049, offset by stronger cash flows from previous contribution reforms and enhanced collection efforts.

“Our actuarial team confirms that the fund remains financially sound,” said De Claro.

“We are committed to restoring fund life back to 2053 through coverage expansion and improved collection efficiency.”

SSS said the reform will benefit over 3.8 million pensioners, including 2.6 million retirement/disability pensioners and 1.2 million survivor pensioners, and is projected to inject P92.8 billion into the economy from 2025 to 2027.

Moreover, the pension fund said the program will not necessitate any contribution increase “unlike the P1,000 additional benefit allowance given to all pensioners starting 2017 that immediately required contribution increases to restore financial stability to the SSS fund.”