Recto: SSS pension reform of 2025 to alleviate 3.8M Filipino families from poverty and boost economic growth

  • Post category:News

Finance Secretary and Social Security Commission (SSC) ex-officio Chair Ralph G. Recto lauded the Social Security System (SSS) for its pension reform for 2025, which is expected to alleviate around 3.8 million Filipino families from poverty and boost economic growth through increased consumer spending.

The proposed reform is in line with President Ferdinand R. Marcos, Jr.’s directive to protect the future of Filipino workers.

“Napakagandang balita nito mula sa ating Pangulo, para sa ating mga pensioners––lalo’t lalo na para sa mga matatanda, may kapansanan, at mga survivor pensioner na matagal nang naghahangad ng mas mataas na benepisyo. Sisikapin namin sa gobyerno pagbutihin ang pag implementa ng programang ito upang siguraduhin na walang maiiwan sa pag angat mula sa kahirapan,” he said.

“Bukod dito, makakatulong ito sa paglago ng ekonomiya dahil bibigyan natin ng karagdagang spending power ang mga pensionado,” Secretary Recto added.

The Pension Reform of 2025 is the SSS’ first-ever annual pension increase with a rationalized implementation over a 3-year period.

The monthly pension is based on the amount and duration of contributions made to the SSS, encouraging Filipinos to work, save, and invest their hard-earned money in the program.

The reform will primarily support retirement pensioners or the elderly as it increases income security, especially as life expectancy increases.

Disability pensioners who are unable to work will also be supported through the reform program, keeping their dignity and improving their standard of living.

Death or survivor pensioners, on the other hand, whose pensions are not based on the recipient’s contribution record, are also covered by the program.

Starting this year, all 3.8 million pensioners as of August 31, 2025, will receive annual pension increases every September until 2027. Retirement and disability pensioners of the SSS will receive a 10% increase, while death or survivor pensioners will receive a 5% raise.

“For retirement pensioners aged 60-89 (99.4% of all retirement pensioners), around PHP 4,923 is the average monthly pension just before implementation of this reform program. Such a pension amount will grow to about PHP 6,548 after the third tranche of pension increase – an increase of PHP 1,625 or 33%. After three years of pension increases starting September 2025, SSS will have paid about PHP 41,145 in additional pensions to such average retirement pensioner,” the SSS said in a report.

The SSS clarified that while it implements these pension increases, there shall be a moratorium on contribution increases over the same period. Thus, the pension increases shall not require any contribution increase.

The pension reform is expected to inject an aggregate amount of PHP 117.2 billion into consumer spending through the pensioners, boosting economic growth over the next three years.

The implementation of the pension increase program is grounded in actuarial soundness, ensuring that the SSS fund remains financially sustainable. This is made possible by strong cash flows from the completed contribution rate hikes mandated by the Social Security Act of 2018—from 2019 to 2025—as well as positive financial performance from January to April 2025.

Upon implementation of the reform program, the SSS shall devote its efforts towards generating higher returns on investments to support its members and improving its productivity and efficiencies through modernization.

At the same time, parallel initiatives for the welfare of SSS pensioners will be actively pursued.

###