How to Compute SSS Pension, Philippines

Updated Jan 2017
 

To compute your SSS pension in the Philippines, you need to know 2 values:

—  your AMSC, which means Average Monthly Salary Credit

—  your CYS, which means Credited Years of Service

 

What is AMSC?

AMSC is the average of your last 60 monthly salary credits immediately prior to your semester of retirement.*   How do you compute your AMSC? You add your last 60 monthly salary credits prior to your retirement, and then divide by 60.

You can see the latest monthly salary credits in this latest  Table of SSS Contributions, made effective in January 2014

You can see the older tables of SSS contributions here (will put the link later).

What is CYS?

CYS is the number of years that you paid contributions to SSS.

How do you calculate your CYS?  Based on your contributions.

For January 2002 to present:

CYS = Total number of contributions divided by 12

For January 1985 to December 2001:

CYS = Number of calendar years that you have 6 or more contributions

For years before January 1985:

CYS = 1985 minus the year you started paying to SSS

 
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HOW do you COMPUTE YOUR SSS PENSION?

SSS uses 2  formulas and 2 conditions to COMPUTE your SSS PENSION.  

The highest result will be your SSS pension.

 

Formula 1: 

40% of AMSC = your SSS pension

or

0.40 x AMSC = your SSS pension

 

Formula 2:  

300 pesos

plus 20% of AMSC

plus 2% of AMSC x CYS in excess of 10

= your SSS pension

or

300

+ 0.20 x AMSC

+ 0.02 x AMSC x (CYS minus 10)

= your SSS pension

 

Condition 1:

If the result of Formula 1 or 2 is lower than 1,200 pesos, and you have 10 to 19.99 years of contributions, your pension is 1,200 pesos.

 

Condition 2:

If the result of Formula 1 or 2 is lower than 2,000 pesos, and you have  20 or more years of contributions, your pension is 2,000 pesos.

 

EXAMPLES:

Pensioner 1:   He paid SSS contributions from 1970 to 2012.  He paid 1,760 for each of the last 60 months before his semester of retirement.  The monthly salary credit for 1,760 is 16,000 pesos. His AMSC is 16,000 pesos.

Formula 1:

0.40 x 16,000 pesos  = 6,400 pesos

Formula 2:

300 + 0.20 x 16,000 pesos + 0.02 x 16,000 pesos x (42 – 10)

300 + 3,200 + 10,240 = 13,740 pesos

Between the 2 results, 13,740 is higher than 6,400, so his pension is 13,740 pesos.

 

Pensioner 2:  He worked from 1980 to 2012.  But he was not able to pay the maximum contributions for the last 60 months before his semester of retirement.  His AMSC is  8,000.

Formula 1:

0.40 x 8,000 = 3,200 pesos

Formula 2:

300 + 0.20 x 8,000 + 0.02 x 8,000 x (32 – 10)

300 +  1,600 +  3,520 =  5,420 pesos

Again, between the 2 results, 5,420 is higher than 3,200, so his pension is 5,420 pesos.

 

* AMSC  Explanation

Above, I wrote only one definition for AMSC.  This definition is usually the one being applied because for most members, if not all, the last 60 MSCs are the highest ones, and therefore the last 60 MSCs will result to the highest AMSC.

Based on SSS policies, SSS uses 2 formulas to calculate AMSC. Between the 2 results, SSS chooses the higher result as AMSC for pension computation:

1.  AMSC for the entire period of membership

— Overall total of all monthly salary credits divided by Total number of monthly contributions

2.  AMSC for the last 60 months paid for immediately prior to the semester of retirement

— Total of the last 60 monthly salary credits immediately prior to the semester of retirement divided by 60

Usually, the 2nd formula gives the higher result because for most members, their highest monthly salary credits are in their last years before retirement.

In the 1970s and 1980s, monthly salary credits were only in the hundreds, with the maximum increasing to only 3,000 in 1993, compared to recent years when the maximum monthly salary credit was increased to 12,000 in 1999, to 15,000 in 2002, and then to 16,000 in 2014, so obviously, the last monthly salary credits will give the higher AMSC.

What is the 1985-1989 pension adjustment all about?

 

DISCLAIMER:  
I am not employed by SSS.  Although I based my computations on the SSS Guidebook, my computations might have errors.  For accuracy, please visit the nearest SSS branch.  Please comment if you see errors.

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