Philippines pension boost: 10% hike this year, no contribution increase — SSS fund seen hitting ₱2 trillion

Manila: The Philippines’ state-run Social Security System (SSS) is granting a 10% pension increase this year, with another round scheduled in 2027 — and members won’t pay higher contributions.

SSS President and CEO Robert Joseph de Claro said the fund remains financially strong and is on track to reach ₱2 trillion (about $36 billion) in reserves within the next three to four years.

“We came from the pandemic. The exponential growth after the pandemic is big,” de Claro said in a briefing. “The road to ₱2 trillion is getting nearer. I think we are on track.”

Finance Secretary Frederick Go said the robust financial performance gives SSS room to expand benefits.

“It’s clear that because of all the good performance of the SSS, it gives the SSS the capacity to give more programs that can assist our members,” Go said.

The 10% hike is part of a three-year Pension Reform Program covering all SSS pensioners.

After three years:

SSS will also launch a microloan program offering short-term loans at 8% annual interest, to be rolled out in the second quarter through partner banks.

“The microloan is really our answer to predatory lending,” Go said.

Despite expanded benefits, SSS confirmed there will be no increase in member contributions.

“The last contribution increase was January last year. That was the last tranche in the increase that was part of RA 1119 or the revised SSS law,” de Claro said.

“So hanggang doon na lang po ‘yan. So wala sa charter ng SSS ang mag-increase ka ng contribution (So that [increase in January 2025] is the end of increases. The SSS charter has no provision allowing further increases,” he added.

With reserves fund and income hitting record highs, SSS says it can expand benefits without passing on additional costs to members — for now.