Do you know how much are you going to get from SSS the day you retire? Knowing this can give you the idea of how much you’re going to get from the government when you set for good. On this article, we’re going to check how to compute SSS pension in the Philippines. Let’s go.
Given that you’re a SSS member, you are entitled to get a pension when you reached the retirement age of 60 or above. Of course, the SSS pension you’re going to receive will be base from the number and the amount of your contributions.
2 types of SSS retirement benefits
1. Monthly pension – a lifetime cash benefit paid to a retiree who has paid at least 120 monthly contributions to the SSS prior to the semester of retirement.
2. Lumpsum amount – granted to a retiree who has not paid the required 120 monthly contributions. It is equal to the total contributions paid by the member and by the employer including interest.
Since lumpsum amount is basically what it is, what we are going to share below is how to compute SSS monthly pension given that you paid the required number of monthly contributions.
SSS quote:
“The monthly pension depends on the member’s paid contributions, his credited years of service (CYS), and the number of his dependent minor children that must not exceed five.The monthly pension will be the highest amount resulting from either one of the three pension formulae.“
3 Formula on how to compute SSS pension in the Philippines
Based from official SSS website, we have 3 methods on how to compute SSS pension in the Philippines. These are the following:
1. the sum of P300 plus 20 percent of the average monthly salary credit plus two percent of the average monthly salary credit for each credited year of service (CYS) in excess of ten years; or
2. forty (40) percent of the average monthly salary credit; or
3. P1,200, if the CYS is at least 10 but less than 20; or P2,400, if the CYS is 20 or more.
Looking at those formula can be intimidating. So we’re going to have a basic example to see how much we’re going to get when we retire using each computation. Let see.
Sample computation of SSS pension in the Philippines
For example, Billy became member of SSS and worked as an I.T support with the salary of P25,000 after he graduated. After 30 years of sweating and working hard, he is now 60 years old and ready to retire.
Using the new 2014 SSS contribution table, we have the following:
Billy’s contribution per month: P581.30
Billy’s employer contribution: P1,208.70
Total contribution per month: P1,790.00
Average monthly salary credit (AMSC): P16,000.00
Given that Billy paid all his contribution for the whole 30 years, his total SSS contribution will look like this: P21,480(P1,790 x 12) per year and P644,000 for 30 years(P21, 480 x 30).
Alright, let’s do the math and compute Billy’s SSS pension using all the formula SSS shared to us.
Formula#1
The sum of P300 plus 20 percent of the average monthly salary credit plus two percent of the average monthly salary credit for each credited year of service (CYS) in excess of ten years
=P300 + (AMSC) 20% + (AMSC) 2% for year of service in excess of 10 years
=P300 + (P16,000*20%) + (P 6,000*2%*20 years)
=P300 + (P3,200 + P6,400)
=P9,900
Formula#2
Forty percent (40%) of the average monthly salary credit
=P16,000 * 40%
=P6,400
Formula#3
P1,200, if the CYS is at least 10 but less than 20; or P2,400, if the CYS is 20 or more.
=P2,400(since Billy credited years of service is more than 20 years)
Using all the formula above, the highest amount we got was the first one which is P9,900. Thus, Billy will received that amount as his SSS pension upon his retirement.
Other required details and processes about your SSS pension can be found on SSS official website. There are also instructions and important reminders there that you can follow to inquire or process your SSS pension. Moreover, if you have other inquiry better to visit the nearest SSS branch in your area to directly ask questions and get feedback.
Note: All information above are for illustration purposes only. Data and actual computations may vary from each member and his SSS contributions as well as data from SSS itself. Please be guided accordingly. Thank you.
Alright, you now know how to compute SSS pension in the Philippines. I hope by this far you already have the idea of how much you’re SSS monthly pension plan will look like when you retire. Do you think it’s enough for your retirement? Think again.
I hope this has been informative. Until next time, cheers!
Hi? I want to ask what is the purpose of formula 2&3? I mean, is there really a situation wherein the last 2 formula is higher than the 1st? Just checkin.. anyway, great post! Thank you for this ?
Maybe if the person is never employed but puts some money for his SSS?…
How about the calculation of OFW that contributed a monthly payment of 1760.00 peso per month. Please give the proper calculations .Thank you
Yes.
Case 1: you are an OFW, who retires after paying 132 monthly premiums
You AMSC will be P16,000
Using Formula 1:
= 300 + (16000 * 0.20) + ((16000*0.02)*(11-10))
= 3,820 (monthly pension)
Using Formula 2:
=16000 * 0.40
=6400 (monthly pension) —-> (H I G H E S T)
Using Formula 3:
= 1,200 (monthly pension)
Case 2: You are a lowly-paid employee who has retired after paying 360 monthly premiums.
Your AMSC is 2,500
Using Formula 1:
= 300 + (2500 * 0.40) + ((2500 * 0.02)*(30-10))
= 2300 (monthly pension)
Using Formula 2:
= 2500*0.40
= 1000 (monthly pension)
Using Formula 3:
=2400 (monthly pension) —-> (H I G H E S T)
Sorry, in case number 2, Formula 1, the correct equation is
= 300 + (2500 * 0.20) + ((2500 * 0.02)*(30-10)) because the multiplier is 20% not 40%
= 1800 (monthly pension)
How about if the salary is varying. How to compute it using the table?
If your salary becomes higher, you should pay the highest that you can afford to get the most out of the benefits. But if your salary has been reduced, you can offer your employer to pay for the difference. Remember: SSS is for your own benefit in the future.
To use the table, let’s assume that you are an employee in the private sector in the Philippines and your salary has recently been increased from P10,000 to P 15,000. From the table, your contribution should increase from P363.33 to P545.00. ER means Employer and EE means Employee
In the end, the amount of credit that will be used as basis to compute your benefits are the last 60 payments. All the last 60 payments will be added and their sum will be divided by 60. That becomes your AMSC or your Average Monthly Salary Credit.
Why 60? On what basis? Where I can refer this?
paano po kung na achieve yung 120 months pero di po tuloy tuloy yung pagbabayad example sa 1990 6 months po yung walang hulog 1991 5 months walang hulog..pag nagkakapera dun lang po naghuhulog pero kung itototal yung bwan na nahulog nia e naka 120 months po siya magpepension po ba sya
Yes and no. But will depend on whichever you choose.
SSS only considers 12 monthly payments as 1 year. So if you have paid for 24 months in the last 3 years, then your effective number of years is 2 and not 3.
YES, if you choose to complete 120 payments.
In your case, assuming that your husband only missed a total of 11 of the minimum required 120 monthly payments, SSS will give him the option to complete 120 payments provided that he pay for the same contribution for 11 months. Remember (1) He must never miss a month. Otherwise, he will be instructed to file for lump sum (2) He must never reduce the payment. Otherwise, he will be instructed to file for lump sum (3) Once he completes all of the remaining months, he will be instructed to stop. He is not allowed to contribute more in an attempt to increase the pension.
NO, if you choose to get a lump sum
Or you could claim the lump sum plus the interest his contributions have earned. The interest will be determined by SSS and it’s usually between 4% to 6%.
Parang may mali po ata.
>> Given that Billy paid all his contribution for the whole 30 years, his total SSS contribution will look like this: P21,480(P1,790 x 12) per year and P644,000 for 30 years(P21, 480 x 30). <<
25k po ung monthly salary dba? bakit naging P21+++ lng
I stand corrected. Gets ko na po. Thank you 🙂
good pm po, tanong ko lang po umabot ng 120 months of contribution at age of 50 kaya lang hindi po tuloy tuloy yong hulog pero umabot ng 120 contribution, makapagpention parin po ba or ano po ang gagawin?
sir, good day, thanks a lot for this blog, i have question; in the formula i see Php300, where the sss get that php300, and why only Php300 only. im a seaman and we have pension plan base in norway they have a very good pension plan, why the philippine sss cant do the way norwagian manage our money in sss contribution, the sss are also investing our money in the stock market and goverment project.
I am now 65 years old living in California. I have completed the required 120 contributions totaling Php 136,535. What is my monthly pension? Can I receive it in US dollar using automatic checking deposit?