𝑇ℎ𝑟𝑒𝑒-𝑌𝑒𝑎𝑟 𝑖𝑛𝑐𝑟𝑒𝑎𝑠𝑒 𝑡𝑜 𝑏𝑒𝑛𝑒𝑓𝑖𝑡 3.8 𝑀𝑖𝑙𝑙𝑖𝑜𝑛 𝑝𝑒𝑛𝑠𝑖𝑜𝑛𝑒𝑟𝑠 𝑛𝑎𝑡𝑖𝑜𝑛𝑤𝑖𝑑𝑒
In a landmark move, the Social Security System (SSS) will begin implementing a three-year Pension Reform Program this September 2025, marking the first multi-year pension adjustment in its 68-year history.
The initiative, approved by the Social Security Commission under Resolution No. 340-s.2025, is in line with the directive of President Ferdinand R. Marcos Jr. and follows consultations between Finance Secretary and SSC Chairperson Ralph G. Recto and the President.
SSS President and CEO Robert Joseph M. De Claro said the increase responds to long-standing calls for higher pensions while ensuring fund sustainability. “We’ve heard the clamor loud and clear. This reform is both rational and sustainable, designed to uplift all pensioners without compromising the fund’s actuarial soundness,” De Claro said.
Pension Increase Schedule
The pension hikes will roll out in three annual tranches every September from 2025 to 2027:
- September 2025 (for pensioners as of August 31, 2025):
▪ 10% increase for retirement and disability pensioners
▪ 5% increase for death or survivor pensioners - September 2026 (for pensioners as of August 31, 2026):
▪ Additional 10% for retirement and disability pensioners
▪ Additional 5% for death or survivor pensioners - September 2027 (for pensioners as of August 31, 2027):
▪ Additional 10% for retirement and disability pensioners
▪ Additional 5% for death or survivor pensioners
By the end of the three-year period, pensions will have increased by an estimated 33% for retirement and disability pensioners and 16% for survivor pensioners.
No Contribution Hike Required
Unlike previous benefit adjustments, this pension reform will not require any increase in member contributions. The SSS says the reform will have only a minor impact on the fund’s actuarial life, shortening it from 2053 to 2049—a gap expected to be offset by ongoing contribution reforms and improved collection efforts.
“The fund remains financially sound,” De Claro assured. “We are confident in restoring fund life to 2053 through expansion and efficiency.”
Economic Impact
The Pension Reform Program is expected to benefit over 3.8 million pensioners, including 2.6 million retirees and disability beneficiaries and 1.2 million survivor pensioners. It will also inject approximately ₱92.8 billion into the economy from 2025 to 2027.
The program is grounded in Republic Act No. 11199 or the Social Security Act of 2018, particularly Section 4, which empowers the SSC to adjust pension benefits.
The reform reflects three guiding principles: uplifting all pensioners, restoring purchasing power amid inflation, and promoting the value of work, savings, and financial dignity.
A circular detailing the implementation will soon be published in a newspaper of general circulation.
