How Much SSS Pension Will You Receive Based On Your Current Contribution

Now that the monthly pension increase of P1,000 is already reflected on most retired members’ monthly pension, Social Security System members who are still regularly paying their contributions have a reason to ask how much should they receive once they enter their retirement age and eligible to receive their pension?

According to Susie G. Bugante, vice president for public affairs and special events of the SSS in her January 21, 2017 column at Business Mirror, a rough computation of expected retirement pension can be based on Section 12 of SSS Act of 1997.

      “SEC. 12. Monthly Pension.  ‐  (a) The monthly pension shall be the highest of the following amounts:

           “(1) The sum of the following:

           “(i) Three hundred pesos (P300.00); plus
           “(ii) Twenty percent (20%) of the average monthly salary credit; plus  
           “(iii) Two percent (2%) of the average monthly salary credit for each credited year of service in excess of ten (10) years; or

           “(2) Forty percent (40%) of the average monthly salary credit; or

           “(3) One thousand pesos (P1,000.00): Provided, That the monthly pension shall in no case be paid for an aggregate amount of less than sixty (60) months.
           “(b) Notwithstanding the preceding paragraph, the minimum pension shall be One thousand two hundred pesos (P1,200.00) for members with at least ten (10) credited years of service and Two thousand four hundred pesos (P2,400.00) for those with twenty (20) credited years of service.”

Basically, there are three formulas which SSS pension can be computed, and while each formula may yield different results, the highest amount among the three shall be considered as the SSS pension.

To illustrate the formulas, two SSS members made contrasting contribution amounts over a span of 25 years. One, say Pedro, has monthly salary credit of P16,000, the maximum salary level for SSS contribution, contributes P1,760 every month.

Another SSS member, say Juan, has P1,000, the lowest salary level for SSS contribution and contributes P110 per month.

For the case of Pedro,

Formula 1: Section 12(1)
P300 + 20% of P16,000 + [2% of (P16,000) x (25-10)] = P8,300

Formula 2: Section 12(2)
40% of  P16,000 = P6,400

Formula 3: Section 12(3)
Since Pedro has contributed for more than 20 years based on paragraph (b), this is P2,400

Among the three, Formula 1 has the highest yield and will become Pedro’s monthly pension.

For the case of Juan,

Formula 1: Section 12(1)
P300 + 20% of P1,000 + [2% of (P1,000) x (25-10)] = P800

Formula 2: Section 12(2)
40% of  P1,000 = P400

Formula 3: Section 12(3)
Since Juan has contributed for more than 20 years based on paragraph (b), this is P2,400

Among the three, Formula 3 has the highest yield and will become Juan’s monthly pension.

Should any of them pass away and are survived by legal spouses, their monthly pensions will transfer to their spouses as primary beneficiaries.

For the latest SSS contribution table, click here.

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