Estimate your monthly SSS retirement pension using the highest of the three statutory formulas.
Estimated monthly pension
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Formula 1
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Formula 2
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Minimum floor
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Your breakdown
Updates live as you type
Item
Amount
Worked example
Take an Average Monthly Salary Credit of 20,000 pesos and 25 credited years of service. Formula one adds
300 to 20% of the salary credit, which is 4,000, plus 2% of the salary credit for each year beyond 10. With
15 extra years that 2% layer is 0.02 times 20,000 times 15, or 6,000. So formula one is 300 plus 4,000 plus
6,000, which is 10,300. Formula two is a flat 40% of the salary credit, 8,000. The minimum floor for 20 or
more years of service is 2,400. The SSS pays whichever is highest, so the monthly pension is 10,300. A
13th-month pension equal to one month is also paid each December, on top of the twelve monthly payments.
Formula
Monthly (PHP)
Formula 1: ₱300 + 20% + 2% per year over 10
₱10,300
Formula 2: 40% of salary credit
₱8,000
Minimum floor (20+ years)
₱2,400
Pension paid (highest)
₱10,300
How it is calculated
The SSS retirement pension is the highest of three statutory results computed on your Average Monthly
Salary Credit, the average of the salary credits used for your contributions, and your credited years of
service. The first formula is 300 pesos plus 20% of the salary credit plus 2% of it for every year of
service beyond the first ten, so it rewards both higher contributions and a longer career. The second is a
flat 40% of the salary credit. The third is a minimum floor that rises with service, from 1,000 pesos under
10 years to 1,200 from 10 to 19 years and 2,400 at 20 years or more. The calculator runs all three and
reports the largest, since that is what the SSS pays. A 13th-month pension is paid each December as well.
This is an estimate: the actual pension depends on the precise salary credits posted over your highest-
earning years and on any future SSS adjustments, so treat it as a planning guide rather than a guaranteed
figure.
Frequently asked questions
How is the SSS monthly pension calculated?
The SSS computes three formulas on your Average Monthly Salary Credit and credited years of service, then pays whichever is highest. The first adds 300 pesos to 20% of the salary credit plus 2% of it for each year of service beyond 10. The second is 40% of the salary credit. The third is a minimum floor of 1,000 to 2,400 pesos depending on years of service. A 13th-month pension is also paid each December.
What is the Average Monthly Salary Credit used for the SSS pension?
The Average Monthly Salary Credit is the average of the salary credits posted on your SSS record over the highest-earning years of your membership. It is not your take-home pay; it is the declared amount your contributions were based on, capped at the maximum monthly salary credit set by SSS, which was PHP 30,000 in recent years before scheduled increases. Maximising contributions consistently raises your AMSC and therefore your eventual pension.
How many years of SSS contributions do I need to retire?
You need at least 120 monthly contributions, which is 10 years of paying into SSS, to qualify for a monthly retirement pension. If you have fewer than 120 contributions you will receive a lump-sum benefit instead of a lifetime pension. Members who reach 60 or 65 with enough contributions may also claim an early retirement pension, subject to SSS rules on retirement age and active membership.
Does Formula 1 always give the highest SSS pension?
Not always, but it typically wins for members with long careers and high salary credits because it rewards both a high Average Monthly Salary Credit and more than 10 credited years of service. Formula 2, at 40 percent of the salary credit, can beat Formula 1 when credited years are low, around 10 to 12 years, and the salary credit is high. The minimum floor only matters when both other formulas produce very small results, which is uncommon for regular contributors.