The Social Security System (SSS) is rolling out a bold Pension Reform Program that will raise retirement and disability pensions by a total of 33% over three years — without increasing member contributions — Inquirer.net reported.
The landmark move, set to benefit over 3.8 million pensioners, marks the first time in the agency’s 68-year history that such a phased and substantial increase will be implemented. Survivor or death pensions will also see a 16% total increase during the same period.
Starting September 2025, retirement and disability pensioners as of August 31 will receive a 10% increase, followed by another 10% in September 2026 and a final 10% in 2027. Meanwhile, survivor pensioners will receive an incremental 5% boost annually on the same timeline.
The initiative, driven by a directive from President Ferdinand Marcos Jr. and guided by Finance Secretary Ralph Recto, aims to strengthen the social protection of Filipinos while responding to rising inflation and the growing cost of living.
SSS President and CEO Robert Joseph M. De Claro assured that the fund remains stable, despite the reform reducing the projected fund life from 2053 to 2049. “Our actuarial team confirms that the fund remains financially sound,” De Claro emphasized. “We are committed to restoring fund life back to 2053 through coverage expansion and improved collection efficiency.”
The reform is expected to infuse P92.8 billion into the economy between 2025 and 2027 and is guided by principles of inclusive upliftment, inflation recovery, and the promotion of financial independence through work and savings.
