A NEW 10 percent increase in the monthly retirement and disability pensions of Filipino pensioners under the Social Security System in the third quarter this year gives retirees Juan and Juana good reasons to flash a smile prior to Yuletide.
The first of three incremental increases was rolled out in September last year and the last in September next year, signifying a major, multi-year income boost for some 3.9 million Filipino retirees, and help them grapple with rising costs of living.
This, along with a 5 percent hike for survivors, provides, about 33 percent cumulative increase for retirement/disability pensioners by 2027 and 16 percent for death or survivor pensioners without raising member contributions until 2027, the SSS said in a statement.
The increases fall under the SSS three-year pension reform program, where SSS pensioners would receive a pension hike every September, starting 2025 until 2027.
The fresh 10 percent increase —with no corresponding hike in member contributions—is seen as a significant income boost for those now enjoying their retirement years, given the structured, annual 3-tranche increase particularly designed to combat inflation and rising living costs, affecting retirement, disability and survivor pensioners.
The Social Security System is a mandatory, state-run social insurance program designed to provide financial security to private sector workers, the self-employed, and the informal sector against income loss due to sickness, maternity, disability, old age, or death.
The structured increases, along with the automated 13th month pension, are designed to significantly improve the welfare of Filipino seniors.
During the “Meet with the Press” event last week, Finance Secretary Frederick Go, who also chairs the Social Security Commission, the governing board and policy-making body of the SSS, said with its improved financial standing, SSS is also planning to roll out a microloan program, possibly in the second quarter of the year.
Loan amounts will range from P1,000 to P20,000 at an annual interest rate of 8 percent, or about 0.67 percent per month.
Go said the initiative aims to counter high-interest lending schemes that typically charge 12 to 15 percent monthly.
“The micro loan is really our answer to the predatory lending that a lot of our fellow Filipinos suffer from. We really created this to address what they call the payday loan,” he said.
SSS is coordinating with partner banks so members can access the loan through bank branches nationwide or via a mobile app, without going to SSS offices.