This page was last updated on:
2023-06-12
Pension Rights
Social security legislation provides for old age benefits. A person is entitled to old age benefits at the age of 60 years with at least 120 months of contributions before the six-month period in which pension is paid. The age limit is set as 55 years for miners who worked underground for at least 5 years who are involuntarily unemployed or have ceased employment. The retirement benefits can be delayed to the age of 65 years if workers are still employed. Workers have the option to retire at 60 (optional retirement) or 65 (technical retirement).
Retirement benefits are available in the form of monthly pension or lump-sum amount also referred to as old-age grant. While monthly pension is a lifetime cash benefit payable to a retired person on a monthly basis, the old age grant is one-time payment and is equal to the total contributions paid by the member and employer plus any interest on that amount.
The monthly pension us the highest of:
a) 300 + (20% x AMSC*) + (2% x AMSC) x (CYS** – 10); or
b) 40% x AMSC; or
c) The minimum pension of P1,200, if with at least 10 CYS; or P2,400, if with at least 20 CYS,
whichever is applicable.
AMSC is Average Monthly Salary Credit while CYS is the Credited Years of Service.
Retired persons are also eligible for a 13th Month Pension payable every December
Source: ISSA Country Profile for the Philippines 2016; §12 and 12-B of the Republic Act No. 8282, 1997
Dependents' / Survivors' Benefit
In order for the survivors to receive the deceased’s pension, the deceased must have at least 36 months of contributions before the six-month period (January–June, April–September, July–December, or October–March) in which the death occurred. Eligible survivors include the surviving spouse and up to five dependent, unmarried, and unemployed children under 21 years (no age limit for disabled). The spouse’s benefit ceases on remarriage and the amount is split among the eligible surviving children.
A dependents supplement is also paid for each of the five youngest unmarried and unemployed children conceived on or before the date of death.
100% of the old-age or disability pension the deceased received or was entitled to receive is paid. The minimum pension is 1,000 pesos if the deceased had less than 10 credited years of service; 1,200 pesos with at least 10 but less than 20 credited years; 2,400 pesos with at least 20 credited years. There is no maximum survivor pension.
The Dependent’s supplement is 10% of the monthly old-age or disability pension the deceased received or was entitled to receive or 250 pesos, whichever is greater.
If there is no surviving spouse or dependent child and if the insured person died within 60 months of first receiving a pension, a lump sum of the remaining balance of 60 months of pension is paid to dependent parents, or if there are no dependent parents, to the person named by the deceased. The said benefits are paid 13 times a year.
Source: ISSA Country Profile for the Philippines 2016; §12-A and 13 of the Republic Act No. 8282, 1997
Invalidity Benefit
In order to receive disability pension, the concerned person must be assessed with a permanent total or partial disability of at least 20% with at least 36 months of contributions before the six-month period (January–June, April–September, July–December, or October–March) in which the disability began.
A Social Security System doctor assesses the degree of disability annually. The pension is suspended if the disability pensioner recovers, resumes employment (in the case of a total disability), or fails to report for the annual physical examination.
Invalidity pension is calculated in the same manner as old age pension. There is no maximum disability pension.
For persons suffering from Partial disability: A percentage of the full pension is paid according to the assessed degree of disability. A lump sum is paid if the insured had less than 12 months of contributions.
The payments are made 13 times a year.
Source: ISSA Country Profile for the Philippines 2016; §13-A of the Republic Act No. 8282, 1997
