Guide on How To Compute Your SSS Monthly Pension / Retirement Benefit
HOW TO COMPUTE YOUR SSS MONTHLY PENSION – Here is a guide in calculating your Social Security System (SSS) Retirement Benefit.
The Social Security System (SSS) members have several benefits and loans that they can turn to most especially in times of needs. That is the most common reason why most private companies in the Philippines require their employees membership to the state-run social insurance institution.
There are several loans offered by the SSS. Members may qualify to the SSS Salary Loan, a multi-purpose cash loan offer that was crafted to help address the short-term financial needs of members. Another offer is the SSS Housing Loan for the purpose of house repair and improvement financing.
With regards to the SSS benefits for members, one of them is the Retirement Benefit which most members take as the most important benefit that they look forward to. Members who retire from work due to old age may qualify for this benefit.
Under the Retirement, one of offers is the SSS monthly pension which requires retiring members to have at least a total of 120 monthly contributions for eligibility. How to compute your SSS monthly pension?
There are actually three (3) ways on how to compute your SSS monthly pension manually. Whichever of these three formulas that will yield the highest result is the formula that will be used in calculting your monthly pension.
- Php 300 + 20% of average monthly salary credit (AMSC) + 2% of AMSC for each credited year of service (CYS) in excess of ten years + Php 1,000
- 40% of the average AMSC + Php 1,000
- Php 1,200 if CYS is somewhere between 10-20 years; Php 2,400 if CYS is 20 years or more + Php 1,000
Let us use the first formula which has the biggest chance of yielding the highest result in an example. If SSS member-retiree Pedro is earning Php 25,000, has contributed for 30 years and the AMSC is Php 26,000, here’s how to compute the SSS monthly pension:
- Monthly Pension (MP) = Php 300 + (20% of AMSC) + [2% of AMSC x 20 years (30 years – 10)] + Php 1,000
- Monthly Pension = Php 300 + (0.20 x 20,000) + (0.02 x 20,000 x 20 years) + Php 1,000
- Monthly Pension = Php 300 + P4,000 + Php 8,000 + Php 1,000
- Monthly Pension = Php 13,300
The amount above is a rough estimate as there are factors that might affect the amount such as existing loans and benefits. If the member has not reached a total of 120 monthly contributions, the SSS member may avail the lump sum.
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