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•Mutual Funds & UITF

•AXA Chinese
Equity Fund

•LifeBasiX

https://www.axa.com.ph/fund-
prices

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SSS P.E.S.O. Fund

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SSS Retirement
Benefit is not
enough as
Retirement Fund

FIN 101
Principles of Finance

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RANGE OF COMPENSATION

–YOUR BASIC MONTHLY SALARY

MONTHLY SALARY CREDIT

(MSC)

– THE MEDIAN OF THE RANGE OF

COMPENSATION

– NOTE: MAXIMUM MSC IS ONLY SET AT

PHP20,000.

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– THE CONTRIBUTION RATE FOR SSS IS AT

12% OF YOUR MONTHLY SALARY
CREDIT WHICH IS BEING SHARED BY
THE EMPLOYEE (4%) AND THE
EMPLOYER (8%)

AVERAGE MONTHLY
SALARY CREDIT (AMSC)

–COMPUTED BASED ON THE

LAST 5 YEARS OF SERVICE

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CREDITED YEARS OF
SERVICE (CYS)

–THE TOTAL NUMBER OF YEARS

YOUR SSS CONTRIBUTION IS PAID.

FORMULAS
TO COMPUTE
YOUR SSS
PENSION

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FORMULA # 1

BASED ON THE CREDITED

YEARS OF SERVICE (CYS)
– The first formula is highly driven by the number
of years you paid your contribution. This simply
translates that the more years you contribute the
higher your SSS Pension will be. However, this
formula is only good to use if you paid or planning
to pay for more than 19 years.

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FORMULA # 2

MINIMUM SSS PENSION

– SSS pegged the lowest pension that a
member can receive in order for them not
to get less than the minimum. This formula
serves the below minimum wage earners
and workers with less than 10 credited
years of service.

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FORMULA # 3

BASED ON THE AVERAGE

MONTHLY SALARY CREDIT
(AMSC)
– This formula is based on your AMSC. You
can maximize your SSS Pension using this by
increasing your contribution. But it is also
good to note that this is the formula to use if
you contributed or planning to contribute for
19 years and below.

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FORMULA # 1
(Based on CYS)

P 300 + (20% AMSC) + (2% AMSC) (CYS – 10) + P 1,000

FORMULA # 2
(Minimum Pension)

P 1,000 if CYS is less than 10 years;

P 1,200 If CYS is more than 10 years;
P 2,400 if CYS is more than or equal to 20
years;
+ Php 1,000

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FORMULA # 3
(Based on AMSC)

40% of AMSC + Php 1,000

– Pursuant to Memorandum from the

Executive Secretary in 2017, by the
authority of the President of the
Philippines,
– an additional Php1,000 shall be given
to all pensioners.

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Example
Ronald started working at the age of
20 and he is planning to retire when
he reaches the age of 60 (normal
retirement). His salary for the last 5
years is Php 60,000 per month.

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Conclusions
– You must have a contingency plan. Don’t just settle
saving your money, you must also invest to beat
inflation.
– While SSS provides a good retirement benefit, you
should not rely on it solely if you don’t want to struggle
financially during your golden years. Consider investing
your money in a mutual fund, stocks, bonds, money
market that will not only beat inflation but also provides
you a comfortable retirement you deserve.

END

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