SSS Pension: Computation, Requirements, Loans and Benefits

When I think of the Social Security System (SSS), usually the first thing that comes to my mind is the pension.

I always hear the elderly talk about their monthly SSS pension and how grateful they are for it because they use the money they get to buy their medications. Why is that? What is SSS in the first place?

SSS Pension

  1. Monthly Pension
  2. Lump-sum Amount

How to compute SSS Pension

Requirements for filing and SSS Pension Claim

  1. Over the counter
  2. Online

SSS Pension Loan FAQs

Other Benefits

  1. Sickness Benefit
  2. Maternity Benefit
  3. Disability Benefit
  4. Retirement Benefit
  5. Death Benefit
  6. Funeral Benefit
  7. Salary Loan

The Social Security System (Filipino: Paseguruhan ng Kapanatagang Panlipunan) or SSS was founded in the year 1957.

Under the Republic Act No. 8282 – it is basically a state-run insurance program for all workers in the Philippines for private, professional and informal sectors.

On the other hand, government workers are under the Government Service Insurance System or GSIS.

For those who are self-employed and unemployed, they can also enjoy the benefits SSS provides by applying as a voluntary member as long as they are able to pay the monthly dues. The great thing about being an SSS member is that once you become a member, you are a member for life!

SSS Pension

I’m guessing that all of us are dreaming of the day that when we are old and, instead of worrying about making money, we can just relax and enjoy life as it passes by right?

One of the exciting things about the benefits of the SSS pension is that once we reach the age that we are unable to work, we have a pension that can help us financially. There are two types of retirement benefits, Monthly Pension and the Lump-sum Amount.

What makes them different from one another?

1. Monthly Pension

The monthly SSS pension what a retiree can get when they were able to pay at least one hundred and twenty (120) of the required monthly contributions in SSS before the semester of their retirement. They are now entitled to a lifetime cash benefit! Sweet!

REMEMBER: The amount the retiree will get as their monthly SSS pension will depend on their paid contributions, credited years of service (CYS), and the number of (dependent) minor children that don’t exceed the age of five (5).

The monthly SSS pension will depend on two scenarios:

  • For example, the member is already 63 and is still working; this means you cannot avail the monthly pension even if you have already reached the retirement age. The member needs to be retired AND has already separated from their employer before they can start calculating their pension.
  • The member retired at the age of 60, the monthly pension will be computed and that will be the amount they will receive monthly.

If you have retired more than once, your SSS pension will be based on this:

  • The first retirement pension computation
  • Re-compute the pension for the second/more retirement

2. Lump-sum Amount

This is what the retiree gets if they were not able to pay the required one hundred and twenty (120) monthly contributions in SSS. This is equal to the overall contributions the member and the employer paid, including interest.

(Read: New Law Increasing SSS Contributions Approved)

How to compute SSS Pension

There are three (3) formulas when computing your monthly SSS pension:

1. The sum of P300, add 20% of your average monthly salary credit (AMSC), then add 2% for each credited year of service (CYS) in excess of ten years plus P1,000

P300 + (20% of your AMSC) + [2% of your AMSC x ER (CYS – 10)] + P1,000

*ER is the Employers contribution. This can be found in the updated SSS contribution table.

2. 40% of your average monthly salary credit (AMSC) plus P1,000

3. P1,200, if the CYS is at least 10 but less than 20; or P2,400, if the CYS is 20 or more.

Requirements for filing a SSS Pension claim

If you will apply for a retirement claim over-the-counter, these are documents needed:

  1. SSS ID, Unified Multi-Purpose ID (UMID)
  2. Two valid IDs with your photo, date of birth and signature (Passport, Professional Regulation Commission or PRC, Seafarer’s Identification and Record Book)
  3. DDR Signature Card or Savings account form
  4. Retirement Claim Application (RCA) form
  5. If the applicant is less than 65 years old, they need a Certificate of Separation from their last employer
  6. Photocopy of your passbook or savings account number
  7. Original Birth Certificate
  8. For the self-employed applicants who are less than 65 years old, they need a certified of cessation of business practice of the profession
  9. Original marriage certificate
  10. For those who have illegitimate children, proof of filiation is needed

(Read: The Philippine National ID System: Registration, Requirements, And Application Process)

If a representative will file for the retiree’s retirement claim, you need these extra documents:

  1. Valid ID of the representative or two secondary IDs (ATM card with the card holder’s name, bank account passbook, birth certificate)
  2. An authorization letter with the signature of the SSS member

If you will apply online:

  1. Login to the SSS Member Portal
  2. Go to Electronic Services
  3. Look for Retirement Application
  4. Follow the instructions then submit your application


  • The member should be 60 years old and have already retired from all forms of work (private or self-employed). It is also important that they should have at least paid a hundred and twenty (120) monthly contributions before their semester of retirement.
  • At the age of 65, the member whether they are employed or not, should have paid at least a hundred and twenty (120) monthly contributions before their semester of retirement.
  • When the member is 60 years old, whatever employment status they have, as long as they have paid at least a hundred and twenty (120) monthly contributions prior to the semester of retirement.

SSS Pension Loan FAQs

With the newly launched SSS Pension Loan Program (PLP), you can now get an affordable (but short term) loan for your credit needs! PLP offers low-interest loans that the pensioner can use if they have an emergency.

How much can I loan from SSS PLP?

They will lend you two times your basic monthly pension as a minimum. They will also give you an additional P1,000. The maximum you can get is six times your monthly pension, plus they will again give you a 1,000 benefit.

Keep in mind that you should not exceed P32,000.

Who are qualified for PLP?

  • The retiree must be 55 to 80 years old by the end of the month of their loan term
  • They must not have any outstanding balances to SSS
  • Must not have an advance pension under the SSS Calamity Package
  • They must be receiving a regular monthly pension for at least six months

How can I apply for the SSS Pension Loan Program?

If you want to apply for the SSS Pension Loan Program (PLP), you need to visit the SSS branch near you. Make sure you bring your SSS or UMID card and two valid ID’s with your picture and signature on it.

You may apply in the following branches:

  • Alabang
  • Baguio
  • Ilagan
  • Bacoor
  • Binan
  • New Panaderos in Mandaluyong
  • Manila
  • Makati-Gil Puyat
  • Cebu
  • Tacloban
  • Iloilo Central
  • Cagayan de Oro
  • Davao
  • Naga
  • Dagupan
  • General Santos
  • Zamboanga
  • Diliman
  • Caloocan
  • Pasig-Pioneer

(Read: SSS Salary Loan Application: A How-To Guide)

Other Benefits of Being an SSS Member

1. Sickness Benefit

Let’s say you got sick and you are unable to work, you are entitled to a daily cash allowance for the days that you are absent.

The qualifications that are needed to avail this benefit is that you must have at least deposited three months’ worth of contributions within the last twelve months. Also, you have to be confined in a hospital or at home for four days.

2. Maternity Benefits

For the female members who just gave birth or had a miscarriage, they are given daily cash allowances. Also keep in mind that you can only avail this if you were able to pay the three months’ worth contributions within the last twelve months.

3. Disability Benefit

Accidents are inevitable. In case the member got into a serious one that has partially or permanently disabled them, a cash benefit is granted. It will be released as a monthly pension if you have paid at least a thirty six months’ worth of contribution or in lump-sum if not.

*The amount they will get depends on their monthly contribution.

4.Retirement Benefit

To the members who can no longer work due to their old age, they are also given a monthly pension or a lump-sum amount.

For the members who are no longer working at the age of 60, they may apply for the retirement benefit as long as they have contributed at least a hundred and twenty worth of monthly due contribution before their semester of retirement. But for those who are at the age 65, they are automatically given their benefits, regardless of their employment status.

5. Death Benefit

The beneficiaries of the deceased member are granted a cash benefit either in a lump sum amount or as a monthly compensation.

For the primary beneficiaries – like the spouse or their children – they will get a monthly death pension if the deceased member has at least contributed to the fund in the last thirty six months. If not, they will get a lump-sum.

*If the deceased person does not have a primary beneficiary, their second beneficiary or parents will receive a lump-sum amount.

6. Funeral Benefit

There will be a P20,000 grant for the burial expenses of the deceased member who paid for the burial expenses.

7. Salary Loan

This benefit is granted to all the SSS members (including the voluntary members) to help them with their short term credit needs. Keep in mind that it has a 10% rate per annum.

To be qualified, you must have at least a six month worth of contribution in the last twelve months before you file for the loan application. They will only entertain one loan at a time, so if you have an existing one, there is a high chance that you will not be approved.