The Social Security System (SSS) will begin implementing a multi-year pension increase in September 2025, marking a historic reform aimed at boosting the benefits of more than 3.8 million pensioners.

The three-year Pension Reform Program, approved by the Social Security Commission (SSC) through Resolution No. 340-s.2025, follows a directive from President Ferdinand Marcos Jr. and consultations between him and Finance Secretary Ralph G. Recto, who also chairs the SSC. An official SSS circular will be published in a newspaper of general circulation.

Supported by actuarial studies, the program introduces annual increases in pensions through 2027 — the first structured, multi-year hike in the SSS’s 68-year history.

“We’ve heard the clamor for higher pensions loud and clear,” said SSS President and CEO Robert Joseph M. De Claro. “With the guidance of Finance Secretary and SSC Chairperson Ralph G. Recto, and after careful actuarial review, we are rolling out a rational and sustainable pension increase that uplifts all pensioners without compromising the fund’s actuarial soundness.”

Under the plan, pensioners as of August 31 of each year will receive increases in September as follows:

• 2025: Retirement and disability pensioners will receive a 10% increase, while death/survivor pensioners will get 5%.

• 2026: Another 10% and 5% increase, respectively.

• 2027: A final round of the same percentage hikes.

By 2027, retirement and disability pensions will have risen by about 33%, while death and survivor pensions will grow by around 16%.

The reform is based on the Social Security Act of 2018 (Republic Act No. 11199), which authorizes the SSC to adjust pension benefits. According to the SSS, the program aligns with its goals to protect purchasing power, promote saving, and ensure inclusive pension growth.

SSS Chief Actuary projections show the fund life will be shortened slightly from 2053 to 2049 due to the increases, but De Claro said the fund remains sound.

“Our actuarial team confirms that the fund remains financially sound,” he said. “We are committed to restoring fund life back to 2053 through coverage expansion and improved collection efficiency.”

The SSS expects the reform to inject ₱92.8 billion into the economy over three years, without requiring any increase in member contributions.

Unlike the ₱1,000 pension benefit granted in 2017 that triggered higher contributions, this program will be fully funded by internal reforms and improved revenue flows, SSS said.