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Advocates Philippines
SSS To Begin Landmark Three-Year Pension Reform In September 2025
Photo credit: PNA
The Social Security System (SSS) will launch a historic Pension Reform Program in September 2025, marking the first structured, multi-year pension increase in its 68-year history. This move comes in line with the directive of President Ferdinand R. Marcos Jr. and follows discussions with Finance Secretary and Social Security Commission (SSC) Chairperson Ralph G. Recto.
Approved by the SSC through Resolution No. 340-s.2025, the reform is supported by detailed actuarial studies and aims to respond to long-standing calls for higher pension benefits while ensuring the fund remains financially sound. The SSS emphasized that the reform is designed to be both rational and sustainable, with implementation carefully planned over a three-year period.
SSS President and CEO Robert Joseph M. De Claro said the reform directly addresses the needs of pensioners. He noted that with guidance from Secretary Recto and after a thorough review of the fund’s financial health, the agency is now ready to implement increases that benefit all pensioners without putting future generations at risk.
Starting in September 2025, pensioners will receive annual increases over a three-year period. Retirement and disability pensioners will see a total increase of about 33 percent by 2027, while death and survivor pensioners will receive a cumulative increase of about 16 percent. These adjustments will be applied to those receiving pensions as of the end of August each year, covering 2025, 2026, and 2027.
The program is anchored on Republic Act No. 11199, also known as the Social Security Act of 2018. Section 4 of the law authorizes the SSC to adjust pension benefits when necessary, and this reform is seen as a significant step toward fulfilling that mandate. According to the SSS, the increase is carefully calibrated to avoid requiring a corresponding hike in member contributions, setting it apart from previous adjustments such as the ₱1,000 benefit added in 2017, which led to immediate changes in contribution rates to stabilize the fund.
At the heart of the reform are three guiding principles: improving the well-being of all pensioners through inclusive increases, helping them recover purchasing power eroded by inflation, and reinforcing the importance of long-term saving and financial security in line with the core objectives of the social security system.
De Claro assured that the fund’s financial stability remains intact, with projections showing that its life can be extended to 2053 through improved contribution collection and expanded membership. The program is expected to benefit more than 3.8 million pensioners, including 2.6 million retirement and disability pensioners and 1.2 million survivor pensioners. Over the three-year implementation period, the reform is projected to inject ₱92.8 billion into the economy, offering a boost not only to individual households but also to national economic activity.
A formal circular detailing the program will be published in a newspaper of general circulation, and the SSS encourages its members and pensioners to keep informed as implementation draws near.
Approved by the SSC through Resolution No. 340-s.2025, the reform is supported by detailed actuarial studies and aims to respond to long-standing calls for higher pension benefits while ensuring the fund remains financially sound. The SSS emphasized that the reform is designed to be both rational and sustainable, with implementation carefully planned over a three-year period.
SSS President and CEO Robert Joseph M. De Claro said the reform directly addresses the needs of pensioners. He noted that with guidance from Secretary Recto and after a thorough review of the fund’s financial health, the agency is now ready to implement increases that benefit all pensioners without putting future generations at risk.
Starting in September 2025, pensioners will receive annual increases over a three-year period. Retirement and disability pensioners will see a total increase of about 33 percent by 2027, while death and survivor pensioners will receive a cumulative increase of about 16 percent. These adjustments will be applied to those receiving pensions as of the end of August each year, covering 2025, 2026, and 2027.
The program is anchored on Republic Act No. 11199, also known as the Social Security Act of 2018. Section 4 of the law authorizes the SSC to adjust pension benefits when necessary, and this reform is seen as a significant step toward fulfilling that mandate. According to the SSS, the increase is carefully calibrated to avoid requiring a corresponding hike in member contributions, setting it apart from previous adjustments such as the ₱1,000 benefit added in 2017, which led to immediate changes in contribution rates to stabilize the fund.
At the heart of the reform are three guiding principles: improving the well-being of all pensioners through inclusive increases, helping them recover purchasing power eroded by inflation, and reinforcing the importance of long-term saving and financial security in line with the core objectives of the social security system.
De Claro assured that the fund’s financial stability remains intact, with projections showing that its life can be extended to 2053 through improved contribution collection and expanded membership. The program is expected to benefit more than 3.8 million pensioners, including 2.6 million retirement and disability pensioners and 1.2 million survivor pensioners. Over the three-year implementation period, the reform is projected to inject ₱92.8 billion into the economy, offering a boost not only to individual households but also to national economic activity.
A formal circular detailing the program will be published in a newspaper of general circulation, and the SSS encourages its members and pensioners to keep informed as implementation draws near.
Jul 31, 2025
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