The Social Security System (SSS) has announced that beginning September 2025, millions of pensioners will start receiving higher monthly pensions under a three-year Pension Reform Program. The reform is designed to cushion the impact of inflation and rising living costs, ensuring that retirees, persons with disabilities, and survivor beneficiaries receive fairer benefits.
How Much Will Pensions Increase
The adjustment will be applied gradually over three years. Retirement and disability pensions will grow by a total of 33 percent by 2027, while survivor pensions will increase by 16 percent over the same period.
- In September 2025, retirement and disability pensioners will receive a 10 percent increase, while survivor pensioners will get an additional 5 percent.
- In 2026, another 10 percent and 5 percent will be added, respectively.
- By 2027, a final round of increases will complete the reform, with retirement and disability pensions up by one-third and survivor pensions nearly one-sixth higher than today.
This gradual schedule allows pensioners to steadily benefit from higher income without straining the fund too heavily at once.
Who Will Benefit from the Increase
The program is expected to cover more than 3.8 million beneficiaries nationwide. This includes:
- Retirees who rely mainly on their SSS pension for daily expenses.
- Disability pensioners whose medical condition or injury prevents them from earning a stable income.
- Survivor pensioners such as widows, dependent children, or other legal beneficiaries of deceased members.
The increase will apply to both long-time pensioners and newly retired members, making the program inclusive and equitable.
Example of the Pension Growth
To illustrate, a retiree currently receiving ₱5,000 per month will get ₱5,500 beginning September 2025. By 2026, this will rise to ₱6,050. In 2027, another increase will push the monthly pension to about ₱6,655. This means that in just three years, the pensioner’s monthly benefit will have grown by more than ₱1,600.
Why the Increase Matters
For many Filipinos, the SSS pension is their primary or only source of income in retirement. The additional amount can help cover essentials such as food, utilities, and medicine. Officials estimate that the pension reform will inject nearly ₱93 billion into the economy between 2025 and 2027, boosting local spending power and contributing to community development.
Impact on the SSS Fund
The increase is made possible without raising contribution rates. However, SSS officials acknowledged that the reform will shorten the projected life of the fund by four years, from 2053 to 2049. To address this, the agency is planning to expand coverage, improve contribution collection, and explore reforms that will restore the fund’s sustainability.
How the Adjustment Will Be Applied
Eligible pensioners as of August 31 each year will automatically receive the increase starting September. There is no need to apply, as the adjustment will be processed by SSS. Payments will be credited directly to the pensioner’s registered bank account or through their existing disbursement channel.