How to compute SSS pension + SSS Pension Calculator

The Social Security System (SSS) is a government agency in the Philippines that provides social insurance, retirement benefits, and other related services to its members. One of the benefits that SSS offers is the pension program, which provides a monthly allowance to qualified members who have contributed to the system for a certain number of years.

To help SSS members plan for their retirement, we have developed an online tool called the SSS Pension Calculator. This Retirement Calculator allows SSS members to estimate their potential pension benefits based on their contribution history and other relevant information.

This tool assists members in making informed decisions about their retirement plans by providing a realistic estimate of the pension they can expect to receive from the SSS program.

Understanding SSS Pension Computation and How the SSS Pension Calculator Works

The SSS pension is calculated using three official formulas, and the highest amount among them becomes your monthly pension. The formulas are:

1. 300 + (20% × AMSC) + (2% × AMSC × (Years of Service – 10))
2. 40% × AMSC
3. Minimum pension: ₱1,200 for 10-19 years of service, or ₱2,400 for 20+ years

Once the highest value is identified, an additional ₱1,000 benefit (introduced in January 2017) is added to your monthly pension.

The calculator uses these same formulas to estimate your basic pension. Here are important details about the computation:

• The maximum Average Monthly Salary Credit (AMSC) that can be used for pension calculation is ₱35,000 (previously ₱20,000 before January 1, 2025). For more details about MSC limits, see the official SSS contribution guidelines.
• While SSS requires a minimum of 120 monthly contributions to be eligible for pension, the calculator uses years of service for input because:
  • The pension formulas are based on credited years of service (CYS)
  • Monthly contributions are only used to check the minimum requirement (120 months = 10 years)
  • All pension calculations are performed using years, not months
• Although this calculator provides an accurate estimate, please note that your actual pension may vary due to factors such as:
  • Inflation adjustments
  • Changes in SSS policies
  • Your actual contribution history
  • Any applicable deductions or adjustments
• For the most accurate information about your pension, we recommend consulting with SSS officials.

To learn more about the maximum possible SSS pension you can receive in the Philippines, including detailed calculations and examples for long-term contributors, see our article “How much is the maximum SSS pension in the Philippines?“

Important: This calculator shows only the basic SSS pension. If your actual salary was higher than ₱35,000, you were automatically enrolled in the Mandatory Provident Fund, which will provide additional pension benefits. There is also a voluntary Pension Booster program where members can make additional contributions to increase their future pension. However, since these programs apply to specific cases, they are not included in this basic pension calculator which is relevant for the majority of SSS members.

How to use the SSS Pension Calculator?

To estimate your monthly pension benefits:

1. Enter your average monthly salary credit
2. Enter your credited years of service (minimum 10 years)
3. Click the “Calculate Pension” button

The calculator will show your estimated monthly pension amount. If you enter a salary credit above ₱35,000, the calculator will use ₱35,000 for the calculation. If you enter less than 10 years of service, you’ll see an error message as this is the minimum requirement for pension eligibility.

You can use the Reset button to clear the form and make a new calculation.

What is the Average Monthly Salary Credit?

The average monthly salary credit (AMSC) represents your typical monthly earnings over your entire contribution period. To calculate your AMSC, sum up all your monthly salary credits and divide by the total number of months. The maximum AMSC that can be used is ₱35,000.

For example:

• If you worked for 2 years with the following monthly salary credits:
  • First year: 12 months × ₱15,000 = ₱180,000
  • Second year: 12 months × ₱20,000 = ₱240,000
  • Total sum: ₱420,000
  • Total months: 24
  • AMSC = ₱420,000 ÷ 24 = ₱17,500

This AMSC is used as the foundation for computing your SSS pension benefits. When using the calculator, you would enter ₱17,500 as your AMSC in this example.

Contribution and Pension Examples

Here are examples of contributions and estimated pensions for different salary ranges:

Note: These examples include the additional ₱1,000 benefit and are calculated using the official SSS pension formulas. The table shows how both your salary credit and years of service affect your pension amount.

What are the Requirements for an SSS Pension?

Qualifying for an SSS pension requires a minimum of 120 monthly contributions and reaching the age of 60, or becoming totally and permanently disabled, and not receiving any pension from the government.

• Have at least 120 monthly contributions prior to the semester of retirement
• Meet one of these age requirements:
  • 60 years old (for optional retirement) and separated from employment
  • 65 years old (for technical retirement)
  • Special age provisions apply for underground/surface mineworkers (50/60 years) and racehorse jockeys (55 years)

To apply for an SSS pension, you need to prepare certain required documents such as your birth certificate, SSS ID or E-6, and a certificate of separation from your last employer.

For those who are eligible for early retirement, you must submit a request letter stating the reason for early retirement and the date of retirement.

Submit your completed documents online via the My.SSS portal.

In addition to retirement benefits, the SSS offers various other forms of social security, including sickness and maternity benefits, as well as disability support, among others.

Frequently Asked Questions

Now let’s answer some frequently asked questions about SSS pension.

What is the difference between SSS and GSIS?

Distinctions between the Social Security System (SSS) and the Government Service Insurance System (GSIS) are evident in terms of the employees they cover and the benefits they offer. Here are some key differences to consider when comparing the two systems:

1. Coverage: SSS covers private sector employees while GSIS covers government employees. This means that if you work for a private company, you are covered by SSS, but if you work for the government, you are covered by GSIS.
2. Eligibility: The eligibility requirements for SSS and GSIS differ. For instance, to qualify for SSS benefits, you need to have made at least 120 monthly contributions to the system, while for GSIS, you need to have been a government employee for at least 15 years.
3. Benefits: Although SSS and GSIS offer similar benefits such as pensions, disability benefits, and death benefits, the amounts and terms of these benefits differ.

For instance, SSS pensions are based on the average monthly salary credit and the number of years of contributions, while GSIS pensions are based on the final average salary and the number of years of service.

It is essential to compare SSS and GSIS to determine which system is best suited for your needs.

Can I still receive my SSS Pension if I have not completed 120 monthly contributions?

To qualify for the SSS Pension, completing 120 monthly contributions is a requirement. This means that if you have not completed the required number of contributions, you will not be eligible to receive the SSS Pension.

However, this does not mean that you will not be able to receive any benefits from the Social Security System.

If you have incomplete contributions, you may still be eligible for alternative pension options such as the lump sum amount or the retirement benefit package.

These benefits are calculated based on the number of contributions you have made and the SSS contribution rates.

It is important to note that while incomplete contributions can affect your retirement eligibility, it also affects the sustainability of the pension fund.

This is because the SSS Pension is a contributory pension plan, meaning that the benefits are funded by contributions from its members. As such, the more incomplete contributions there are, the less sustainable the pension fund becomes.

Can I still receive my SSS Pension if I have not reached the age of 60 but have become totally and permanently disabled?

Individuals who have not yet reached the age of 60 but have become totally and permanently disabled may still be eligible to receive Social Security System benefits.

To qualify for these benefits, they need to submit a disability claim application form along with other supporting documents.

Remember, the SSS Pension and Disability benefits are provided to those who have contributed to the SSS and have met the eligibility criteria.

Final Summary

The SSS Pension Calculator is a useful online tool for Filipinos planning their retirement. By inputting your monthly salary credit and years of service, you can get an estimate of your potential pension benefits from the Social Security System (SSS). This tool provides insight into how your contributions will translate into future income.

It’s important to remember that the calculator offers an estimate. The actual pension amount may differ due to factors such as total contributions, service length, and any applicable deductions or additional benefits at retirement.

Understanding the monthly salary credit is key, as it directly affects your contributions and benefits. This knowledge helps you make informed decisions about your retirement planning.

While the calculator is a helpful starting point, consulting with SSS representatives or financial advisors is recommended to ensure a comprehensive understanding of your retirement options and to prepare effectively for your financial future.

See the New SSS Contribution Table here!