The net income of Social Security System (SSS), the state-run pension fund for private-sector workers, fell by 28 percent to ₱48 billion in the first half of 2026 as expenses, especially benefit payouts to pensioners, continued to rise faster than its income.

SSS’ latest condensed statement of comprehensive income showed that its net income for the first six months of the year dropped from the ₱66.5 billion recorded a year ago.

Also, SSS’ total comprehensive income slid by 43 percent to ₱38.2 billion during the first half from ₱67.4 billion in the same period last year.

The pension fund incurred other comprehensive losses amounting to ₱9.8 billion in the first six months, a reversal of the ₱971.9-million gain a year ago, mainly due to a ₱10.2-billion loss from changes in fair value of financial assets (FA) at fair value through other comprehensive income (FVTOCI).

End-June total income grew by 11 percent to ₱254.8 billion from ₱229.6 billion in the first six months of 2025.

Service and business income—mainly from members’ contributions—jumped to almost ₱236 billion from ₱217.1 billion a year ago, while investment gains climbed to ₱18.6 billion from ₱12.3 billion. Other non-operating income also increased to ₱217.5 million from ₱175.5 million.

Meanwhile, first-half total expenses rose by a faster 27 percent to ₱206.8 billion from ₱163.1 billion in the same six-month period last year, driven mainly by higher benefit payments and non-cash expenses.

Benefit payments, which accounted for more than four-fifths of total expenses, increased by 19 percent to ₱173.5 billion from ₱145.7 billion a year ago. Non-cash expenses, meanwhile, more than doubled to ₱27.4 billion from ₱11.9 billion.

The increase in benefit payouts came amid higher pensions under SSS’ pension reform program (PRP), including the early implementation beginning in June of this year’s scheduled pension increase, which was originally set for September, amid a state of national energy emergency caused by the prolonged war in the Middle East.

Under PRP’s second tranche, retirement and disability pensioners received a 10-percent increase in their monthly pensions starting last June, while death and survivor pensioners received a five-percent increase. SSS had estimated that the early implementation from June to August would entail about ₱6.5 billion in additional pension payouts, benefiting over four million pensioners and their families amid higher energy costs.

Personnel services (PS) also rose to ₱4.3 billion from nearly ₱4 billion a year ago, while maintenance and other operating expenses (MOOE) jumped to ₱1.5 billion from ₱1.3 billion. Financial expenses were slightly lower at ₱165.8 million from ₱166 million.

Despite lower first-half earnings, SSS’ total assets further climbed to a new high of ₱1.35 trillion as of end-June from ₱1.3 trillion at end-March, its latest condensed statement of financial position showed.