How to Compute SSS Monthly Pension

The monthly pension depends on the members paid contributions, including the credited years of service (CYS) and the number of dependent minor children but not to exceed five. The amount of monthly pension will be the highest of:

• the sum of P300 plus 20 percent of the average monthly salary credit plus 2 per cent of the average monthly salary credit for each accredited year of service (CYS) in excess of ten years; or

• 40 per cent of the average monthly salary credit; or

• P1,200, provided that the credited years of service (CYS) is at least 10 or more but less than 20 or P2,400, if the CYS is 20 or more. The monthly pension is paid for not less than 60 months.

A retiree has the option to receive the first 18 monthly pension in lump sum discounted at a preferential rate of interest to be determined by the SSS. The option should be exercised upon filing of the first retirement claim. Only advance payments shall be discounted on the date of the payment. The dependents’ pension and 13th month pensions are excluded from the 18 months lump sum pension.

The member will receive the monthly pension on the 19th month and every month thereafter.

Illustration:
An SSS member with monthly salary of Php 30,000.00 and is now 60 years old is eligible to retire after working for 30 years.

Based from the SSS contribution table, his contribution is Php 581.30 and Php 1,208.70 for his employer's contribution. His total contribution will be P1,790.00 pesos per month. This total amount is his average monthly SSS contribution. Thus, his average monthly salary credit (AMSC) is Php 16,000.00. Please take note that Php 16,000.00  is the maximum Average Monthly Salary Credit, even if he is earning Php 30,000.00 at the time of his retirement.

The sum of his total contribution is Php 1,790.00 x 12 months x 30 years = Php 644,400.00.

Method 1

Monthly SSS Pension = (AMSC) 20% + (AMSC) 2% for year of service in excess of 10 years + Php 300.00 

Monthly SSS Pension = (Php 16,000 x 20%) + (Php 16,000.00 x 2% x 20 years) + Php 300
Monthly SSS Pension = Php 3200.00 + 6,400.00 + 300.00
Monthly SSS Pension = Php 9,900.00

Method 2

Monthly SSS Pension = Forty percent (40%) of the average monthly salary credit

Monthly SSS Pension = Php 16,000.00 x 40%
Monthly SSS Pension = Php 6,400.00

Method 3

Php 1,200, provided that the credited years of service (CYS) is at least 10 or more but less than 20 or Php 2,000, if the credited years of service (CYS) is 20 or more.

Monthly SSS Pension = Php 2,000.00 since he has more than 20 credited years of service.

Based on the computations given by SSS, the resulting amount based on the said three ways of computations, the amount whichever is the highest, will be the monthly pension. Thus, the first computation yields as the highest with P9,900.00. His monthly pension can be based on this amount. 


For him to break-even in his contributions, he has to be alive for a minimum of 5.40 years (65.1 months) to fully benefit from the pension assuming he has not used any of his SSS benefits.

For more information or questions, you may visit their website or contact SSS:

          Call Center: 920-6446 to 55          

          Website: Social Security System

          Email: member_relations@sss.gov.ph

          Facebook: https://www.facebook.com/SSSPh


Free SSS Pension Calculator
Try this interactive calculator to compute for your SSS monthly pension. Simply specify your monthly salary, years of service and membership status. This calculator calculates your approximate monthly pension based form your latest monthly salary.

Or compute your approximate monthly pension based on the monthly SSS contribution.

DISCLAIMER: This calculator follows the latest SSS schedule of contribution table and is based on the author's own interpretation. Should you find any disparity or inaccuracy, please let the author know by throwing it in using the Comment Box below or Contact section.


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