SSS Pension Loan Monthly Computation Guide


It’s best to get this out of the way right away: the SSS pension will not be enough to fund your retirement plans. Invest in a retirement savings plan as soon as possible to ensure that you will be able to live comfortably beyond 60 years.

However, it would be best to learn how to calculate your SSS pension because it will become a reliable source of income once you’ve reached retirement age. Although the amount you’ll receive isn’t ideal for living a lavish lifestyle, it’s better than having no pension at all.

SSS monthly premiums would grow by 1% every other year through 2025, according to Republic Act 11199, or the Social Security Act of 2018. However, the Senate recently passed Senate Bill 2027, which would allow the President to postpone the SSS contribution hike for six months. 

What impact will this increase in contributions have on your SSS pension in the future? Continue reading to learn how to calculate your SSS retirement compensation. With this practical SSS pension calculating guide, get your calculator set and start planning for the future.

Ways to Compute your SSS Pension

You can calculate your monthly SSS pension in two ways. You can either do it manually or use the SSS website online.

Manual Computation of SSS Pension

Manual Computation of SSS Pension

“How much is my SSS pension?” is undoubtedly the most pressing concern on your mind. “Your SSS monthly pension is determined mainly by your paid contributions, the number of active years as an SSS member, and the number of minor children who are dependent on you.

You can calculate your SSS pension using three formulae. However, the one that provides the immense amount determines your ultimate retirement.

  • 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’s concentrate on the first SSS pension formula because it’s the one that will most likely result in the most significant possible benefit. As you can see, understanding it on paper can be difficult. So, let’s put the formula to the test in a hypothetical situation.

Senior Citizen John, for example, earns PHP 30,000 and has paid into the SSS for 40 years. His AMSC is PHP 20,000, according to the current SSS contribution table.

Here’s how to calculate the SSS pension:

Monthly Pension (MP) = PHP 300 + (20% of AMSC) + [2% of AMSC x 30 years (40 years – 10)] + PHP 1,000

MP = PHP 300 + (0.20 x 20,000) + (0.02 x 20,000 x 30) + PHP 1,000

MP = PHP 300 + PHP 4,000 + PHP 12,000 + PHP 1,000

Monthly SSS Pension = PHP 17,300*

Note: This SSS pension computation doesn’t account for inflation. For a more accurate estimate of your expected pension, consult your local SSS office.

SSS Pension Online Calculator

SSS Pension Online Calculator

There is an easier way to calculate your SSS pension if numbers intimidate you and SSS pension tables appear too hard. Try the SSS Retirement Benefit Estimator, a useful SSS pension calculator available on the SSS website.

Enter your date of birth, the month and year you first joined the SSS, and your current monthly payment. Then click the Compute button after entering the captcha code.

The SSS pension calculator will display two sets of SSS monthly pensions: one for when you retire at the age of 60 and another for when you retire at the age of 65. If you retire at 65, your SSS pension will be more significant.

Qualified SSS Pensioner

Qualified SSS Pensioner

Your SSS pension is a cash payment you’ll get when you’re no longer able to work due to old age. You can qualify for retirement benefits in one of two ways.

  • You have made at least 120 monthly SSS contributions before the semester of retirement and are an SSS member over the age of 60. You have separated from employment or stopped being self-employed.
  • You are an SSS member over the age of 65, working or unemployed, and have paid at least 120 monthly SSS contributions previous to the semester of retirement.

Any SSS branch or representative office can process claims for retirement benefits.

Claiming your SSS Pension

Claiming your SSS Pension

The SSS will need you to create a single savings account and present a photocopy of your passbook, ATM card, initial deposit slip, bank statement, or Visa Cash Card registration form when you file your retirement benefits claim.

Your pension will be deposited into your selected bank account by the SSS (ideally the branch nearest to you). You have two options for receiving your retirement benefits.

Monthly pension for the rest of your life. After you apply for your retirement benefit, your monthly stipend will begin. However, if you reach the age of 60 and decide to work again, your pension will be suspended until you get 65 years.

Payment in one go. You can also choose to receive your pension at a reduced rate for the first 18 months, as defined by the SSS. On the 19th month and beyond, your monthly pension will resume.

Other SSS Computation Facts:

1. To qualify for an SSS pension, how many contributions should I make?

To obtain a monthly pension, you must make at least 120 paid monthly payments in the semester before your scheduled retirement. If your total SSS contributions fall short of the minimum 120, you’ll get a lump-sum fee instead.

2. What formula for calculating the SSS pension for volunteer members?

The identical SSS pension calculation for mandatory members also applies to voluntary members. You can use the SSS pension calculator for volunteer members to calculate your retirement payout.

3. In SSS, how do you compute the AMSC?

“Divide the sum of the last sixty (60) monthly salary credits immediately preceding the semester of contingency by sixty (60), or the result obtained by dividing the sum of all monthly salary credits paid before the semester of contingency by the number of monthly contributions paid in the same period, whichever is greater.”

If your Monthly Salary Credit as an employed SSS member is 20,000, multiply it by 60 or by the amount of paid monthly contributions made a semester before contingency (or two consecutive quarters before retirement). This is going to be your AMSC.

4. How do OFWs calculate their SSS pension?

OFWs are subject to the same calculation as above. With the help of the SSS pension calculator, try making your calculations.

5. What is the maximum SSS retirement benefit?

Your SSS pension is calculated using your monthly salary credit and the number of years you paid SSS contributions. Your SSS monthly pension will be more significant if your MSC is higher and you pay your contributions for a more extended period. In the Philippines, retirees can get a monthly pension of up to PHP 18,495 or as little as PHP 2,000.

It’s never easy to broach the subject of retirement. However, it would help if you had a broad notion of what you want to do after retiring. Start planning your golden years as soon as possible. An excellent place to start is learning the basics of SSS retirement calculations.

Hopefully, you’ll begin to understand the value of saving, life insurance, and investments from there. Not only will this make your 60s a lot less difficult to bear. Even after you leave this place, you’ll continue to assist your children and their families financially.

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