Social Security

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 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).

For surface or underground miners who have worked for at least five years, optional retirement age is 50 years old, while compulsory retirement age is 60 years old.

Retirement benefits are available in the form of monthly pension or a lump-sum benefit, paid by SSS.. While monthly pension is a lifetime cash benefit payable to a retired person on a monthly basis, the lump sum is a one-time cash payment and is equal to the total contributions paid by the member and employer plus any interest on that amount.

The monthly pension will be the highest of:

1. 300 + (20% x AMSC) + (2% x AMSC) x (CYS – 10); or
2. 40% x AMSC; or
3. The minimum pension of PhP1,200.00, if with at least 10 CYS or PhP2,400.00, if with at least 20 CYS.

AMSC is the 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: §302 of the Labor Code, as amended §12-B of the Social Security Act of 2018 (Republic Act No. 11199); §4 of Rule 21 of the Implementing Rules and Regulations of Republic Act No. 11199 or the Social Security Act of 2018; §2 of Rule 18 of the IRR SSA; RA 10757

Dependents' / Survivors' Benefit

In order for the survivors to receive the deceased’s pension from the SSS, 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 dependent’s pension is also paid for each of the five youngest unmarried and unemployed children conceived on or before the date of death.

100% of the retirement or disability pen­sion the deceased received or was entitled to receive is paid. The minimum pension is PhP1,000.00 if the deceased had less than 10 credited years of service; PhP1,200.00 with at least 10 but less than 20 credited years; and PhP2,400.00 with at least 20 credited years.

The dependent’s pension is 10% of the monthly pension the deceased received or was entitled to receive or PhP250.00, whichever is greater.

If there is no surviving spouse or dependent child, pension will be paid to the dependent parents, or if there are no depen­dent parents, to the person named by the deceased 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. The said benefits are paid 13 times a year.

Source: §1, 8(e)(2), 8(k), and 13 of the Social Security Act of 2018 (Republic Act No. 11199); §2 of Rule 18 of the Implementing Rules and Regulations of Republic Act No. 11199 or the Social Security Act of 2018

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; §13-A of the Republic Act No. 8282, 1997