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.
“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.
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)
Forty percent (40%) of the average monthly salary credit
=P16,000 * 40%
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!