Earning Passive Income Through SSS PESO Fund

Do you know that you can save through Social Security System (SSS) aside from regular membership? It’s called SSS PESO fund and it’s a safe, affordable way to earn passive income.

In this article, we’re going to talk about how you can invest your money wisely and build your savings care of your SSS membership.

What is SSS P.E.S.O fund?

The SSS PESO fund stands for Personal Equity and Savings Option. It’s a voluntary provident savings program open to members whether working here in the country or abroad. You can open the program on top of your existing mandatory membership

When you start saving, your contributions will be divided into three accounts. See the table below for details.

Retirement/total disability65%
Medical account25%
General purpose10%

The retirement and total disability is dedicated when you no longer are employed or diagnosed with a medical condition that may render you to stop working actively and earn an income.

The medical account on the other hand as well as general purpose accounts can be withdrawn before retirement, and they can be used for unemployment, education, and other purposes.

As you can see, it is actually a great option where you can build up your savings as it can be an alternative for those who have spare cash, want to contribute more than what they’re giving to their mandatory savings in SSS, wish to have their savings grow, and get additional benefits in their later years.

It also gives you the opportunity to prepare for future needs and a means to get some extra cash during any emergency situations that might occur in your life. By setting aside a little from your income at SSS, you’re in a better position to be ready whatever comes in the way.

Who are qualified?

The good news is that most people are eligible to open SSS PESO fund whether you are Filipino working abroad (overseas Filipino workers), self-employed, voluntary members and employees.

There are other eligibility requirements such as the following:

  • This is exclusive to members who are no older than 54 years old.
  • Member must have six months successive contributions in the past on year.
  • Member must have already been paying the maximum contribution.
  • Member has not filed any final claim of their regular membership.
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How much can you save with PESO fund?

Initial investment1,000
Additional1,000 or higher in multiples of 100
Maximum investment100,000

To begin an account, you can actually start with at least ₱1,000. You can go as high as ₱100,000 annually. You may also opt to save consecutively for at least ₱1,000 or higher in multiples of ₱100.

How does PESO fund work?

SSS will invest all your contributions to securities that are issued by the Philippine government. That is, it is going to be used to acquire debts in the form of medium-term sovereign bonds and short-term treasury bills.

Specifically, each of the three accounts in your savings will be allocated differently. See the table below for clarification.

Retirement/total disability5-year treasury bonds
Medical account364-day treasury bills
General purpose364-day treasury bills

As you can see, the retirement/disability account is invested in 5-year treasury bonds. These are the medium-term sovereign securities. The other two, medical and general purpose accounts, are invested in relatively shorter terms in treasury notes.

SSS P.E.S.O fund earnings

For SSS PESO earnings, remember that whatever you contribute is going to be divided into three different accounts. Each account is invested in various bonds and notes that are issued by our government. Thus, every account earns sort of a little bit differently.

There’s actually no exact figures that are released by SSS. Instead they stated that the following rates are possible, although the actual figures may be vary from time to time.

Retirement/total disability3.75%
Medical account1.85%
General purpose1.85%
Weighted average3.085%

From the average, it’s fairly easy to make a projection. Let’s compare a savings strategy where ₱1,000 is deposited every month and ₱100,000 every year. Also, let’s assume that this will go on for 20 years. Below is a forecast of the total savings for both strategies.


To give you a better idea, let’s compare when you save in a bank. The average savings account the banks give is 0.25% annually with 20% withholding tax.

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Saving ₱1,000 per month


Saving ₱100,000 per year


We see that SSS PESO fund actually beats savings account at the end of 20 years whether you invest every month or yearly.

Benefits of SSS PESO fund

Government-guaranteed savings

Whatever contributions you put in, it’s backed up by the Philippine government. Risk of capital loss, while present, may be negligible as long as the government is able to meet financial obligations. When you think of it as a savings account, it’s almost like being insured by the Philippine Deposit Insurance Corporation.

Government-guaranteed earnings

Not only is your contribution safe, your earnings are also guaranteed. This means that whatever benefits and growth that your PESO fund gets, SSS may make sure that it’s given to your account.

No taxes

On top of that, all earnings are not subject to tax. You get to enjoy all of it without any cut to pay for any tax liabilities.


Account opening is actually really easy. It’s just like opening the regular SSS membership.

Saving for a purpose

Because your contributions are allocated into different accounts with different goals, you are actually saving your money purposefully. They cover different areas in your life such as having a great retirement in your golden years, less hassles during medical emergency, and other purposes.

Higher potential earnings than bank account

As you can see from the previous projections, your potential future earnings are may be higher than savings account. The difference between PESO and bank earnings might even be more if you’re planning to save long term.

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There are also disadvantages when investing in the P.E.S.O fund.

  • For self-employed, voluntary members, and OFWs, you have to pay the maximum contribution in your regular SSS program before you can begin with the voluntary fund.
  • Fees may be assessed in managing the different accounts.
  • Penalties are charged for people who would want to close their account before the fifth year of membership.
  • Some portions of the savings may only be released on certain conditions such death, retirement, or total disability.
  • Enrollment requires that you visit the SSS branch. Online application is not yet implemented.

How to enroll SSS PESO fund?

As of the moment, the only way to open an account is by visiting any SSS branch near you. Online application is also allowed by submitting the enrollment form through the MySSS portal.

However, you need to confirm your application at any branch.

Check your availability and see if you can spare some time in dropping by the branch. Make sure that you bring at least one valid identification card, your SSS number, and the minimum investment.

How can you contribute to P.E.S.O fund?

Once you’ve opened and confirmed your PESO fund account, you can start contribute by paying at any SSS branches and participating payment outlets.

Currently, Globe GCash can actually receive and credit your contributions. Just follow the instructions below:

  • Dial *137#.
  • Choose option 2 for national government agency.
  • Choose SSS Peso fund
  • Enter 10-digit SSS number.
  • After completing the form, either choose 1 or “Proceed”
  • Enter GCash PIN

When can I get my money back?

The medical and general purpose accounts can be withdrawn any time. The general purpose account in particular might be used for education, housing, livelihood or unemployment. Fees, penalties and charges may be present with it is done within five years.

The retirement and total disability may be withdrawn as final claim on the membership. It can be released upon retiring or when you’re totally disabled, and it may be in the form of lump sum cash, monthly pension, or a mix of the two.

When it is disbursed upon the demise of the member, the beneficiaries will receive the proceeds.

Contact details

If you still have any more inquiries, you may reach out to SSS customer service at 920-6446 to 55, or email onlineserviceassistance@sss. gov.ph. For questions on GCash, dial their hotline 739-2882 or dial 2882 using mobile phones.


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