Philippines Pension Guide — SSS Pension

the Philippines SSS pension system for 2026. The guide covers: the defined benefit monthly pension — the SSS pension is the defined benefit calculated using the formula: PHP 300 + 20% of the average monthly salary credit (AMSC) + 2% of the AMSC for each year of the credited service beyond 10 years; the minimum pension for the members with 10 or more years of contributions; the retirement age of 60 (optional retirement from age 60, the compulsory retirement at age 65); the SSS WISP (Worker's Investment and Savings Program) — the additional voluntary defined-contribution savings programme administered by the SSS.

SSS Monthly Pension Formula

Defined benefit formula: The SSS monthly pension is calculated using the following formula: PHP 300 + 20% of the AMSC + 2% of the AMSC for each year of the credited service (CS) beyond 10 years. The AMSC (the "average monthly salary credit") is the average of the 60 highest monthly salary credits in the member's SSS contribution history. The minimum pension is guaranteed at PHP 1,200/month for the members with less than 10 years of the credited service and PHP 2,400/month for the members with 10 or more years.
Formula breakdown: Monthly Pension = 300 + (0.20 × AMSC) + (0.02 × AMSC × (CS − 10)), where the CS is the total number of the credited service years. For example: the member with 30 years of the credited service and the AMSC of PHP 20,000: the monthly pension = 300 + (0.20 × 20,000) + (0.02 × 20,000 × 20) = 300 + 4,000 + 8,000 = PHP 12,300/month.
Maximum pension: The SSS pension is NOT explicitly capped by the formula, but the AMSC is limited to the maximum salary credit of PHP 30,000. The practical maximum pension for the member with 40 years of the credited service at the maximum AMSC: 300 + (0.20 × 30,000) + (0.02 × 30,000 × 30) = 300 + 6,000 + 18,000 = PHP 24,300/month.

Minimum Pension

10+ years of contributions — PHP 2,400/month: The member who has at least 10 years (120 months) of the credited SSS contributions is guaranteed the minimum monthly pension of PHP 2,400. If the computed pension using the formula is lower than PHP 2,400, the SSS pays the PHP 2,400 minimum.
Less than 10 years — PHP 1,200/month: The member who has between 1 and 9 years of the credited contributions is entitled to the minimum monthly pension of PHP 1,200 (or the lump-sum payment if the member is not eligible for the monthly pension).
Lump-sum benefit: The member with less than 120 months (10 years) of the contributions who reaches the retirement age does NOT receive the monthly pension. Instead, the member receives the "lump-sum benefit" — the total contributions paid by the member and the employer, plus the interest, paid in one lump-sum amount. The lump-sum is the "total accumulated value" of the contributions.

Retirement Age

Optional retirement — age 60: The member may retire optionally at age 60 provided that: (a) the member has paid at least 120 months of the SSS contributions, and (b) the member is no longer employed (the "separation from the employment"). The member who continues to work beyond age 60 may postpone the retirement and start receiving the pension at any time between age 60 and 65.
Compulsory retirement — age 65: The compulsory retirement age is 65. The member must retire and start receiving the SSS pension at age 65, regardless of the employment status. The member who is still employed at age 65 must cease the SSS coverage (the employer stops the SSS contributions for the employee).
Early retirement reduction: The member who retires at age 60 receives the "actuarially reduced" pension — the reduction factor is approximately 0.6% per month (7.2% per year) of the early retirement before age 65. For example: retiring at 60 (5 years early) reduces the pension by 5 × 7.2% = 36% — the member receives 64% of the full pension.

SSS WISP — Worker's Investment and Savings Program

Additional voluntary savings: The SSS WISP (the "Worker's Investment and Savings Program") is the optional defined-contribution savings programme administered by the SSS. The member may contribute the additional amount beyond the regular SSS contribution to build the personal retirement savings fund. The WISP is the "voluntary premium contribution" — the member chooses the amount and the frequency.
Investment returns: The WISP contributions are invested by the SSS in the diversified portfolio (the government securities, the corporate bonds, the equities, the other authorised instruments). The WISP account earns the annual dividend at the rate declared by the SSS. The historical dividend rate is approximately 4% to 7% per annum.
Withdrawal rules: The WISP savings may be withdrawn: (a) at the retirement (age 60 or 65) — the full accumulated value is paid as the lump-sum or the additional monthly pension; (b) at the disability or the death — the full accumulated value is paid to the member or the beneficiaries; (c) the partial withdrawal is NOT permitted before the retirement age.

Other SSS Benefits

Disability benefit: The member who becomes the "permanently disabled" (the total or the partial disability) is entitled to the monthly disability pension (the same formula as the retirement pension) or the lump-sum disability benefit if the contributions are less than 120 months.
Death benefit: Upon the death of the SSS member, the "primary beneficiaries" (the spouse and the minor children) are entitled to the monthly death pension. The death pension is calculated using the same formula as the retirement pension. The "lump-sum death benefit" of PHP 20,000 to PHP 60,000 is also paid to the beneficiaries.
Survivorship pension: The dependent children are entitled to the "orphan's pension" — the pension paid until the child reaches age 18 or graduates from the college (up to age 21). The orphan's pension is 50% of the deceased member's pension for each orphan, or 100% for the full orphan (both parents deceased).