Insights That Illuminate. Advice That Empowers.

In a transformative step toward enhancing the welfare of Filipino retirees, the Social Security System (SSS) is set to roll out its most comprehensive Pension Reform Program (PRP) since its founding in 1957. Beginning September 2025, this landmark initiative—approved by the Social Security Commission (SSC) through Resolution No. 340-s.2025—will deliver a structured, multi-year increase in monthly pensions for all categories of pensioners: retirement, disability, and survivor.

What’s New: Key Features of the Pension Reform Program

1. Tranche-Based Pension Increase Over Three Years

The pension adjustment will be implemented in three annual phases, commencing in September of each year—2025, 2026, and 2027. Each phase will provide a 10% increase for retirement and disability pensioners and a 5% increase for death/survivor pensioners.

Cumulative Increase by 2027:

• Retirement & Disability: Approximately 33%
• Death/Survivor: Approximately 16%

2. Broad and Inclusive Coverage

This reform will benefit more than 3.8 million pensioners nationwide, including:

• 2.6 million retirement and disability pensioners
• 1.2 million survivor pensioners

3. No Additional Contribution Required

Unlike previous benefit enhancements, this program will not require any increase in member contributions. The SSS attributes this to strengthened fiscal management and reforms implemented in recent years.

4. Economic Ripple Effect

The pension increase is expected to inject ₱92.8 billion into the Philippine economy over three years, stimulating household consumption and contributing to national growth.

5. Financial Sustainability

While the fund life is projected to shorten slightly—from 2053 to 2049—the SSS maintains confidence in its long-term viability through:

• Improved cash flows from earlier contribution reforms
• Aggressive collection strategies
• Expansion of member coverage and compliance

Guiding Principles Behind the Reform

The Pension Reform Program is anchored on three key pillars:

• Inclusivity: Ensuring all pensioners benefit from fair and meaningful adjustments
• Inflation Recovery: Helping retirees maintain purchasing power amid rising costs
• Financial Literacy: Reinforcing the importance of saving, investing, and working, in line with Republic Act No. 11199 (Social Security Act of 2018)

Disclaimer:  The sample pension increase chart from 2025 to 2027 is for informational purposes only and does not represent actual pension computations for individual SSS members. Figures shown are illustrative estimates based on publicly available data from the Social Security System (SSS) and may be subject to change. For official updates and personalized pension details, please refer to the SSS website or contact your nearest SSS branch. 

On 9 April 2024, the International Accounting Standards Board (IASB) issued IFRS 18: Presentation and Disclosure in Financial Statements, replacing IAS 1 and ushering in a transformative framework for how entities present financial performance. The standard becomes effective for annual reporting periods beginning on or after 1 January 2027, with early adoption permitted.

In the Philippines, the Financial and Sustainability Reporting Standards Council (FSRSC) has acknowledged IFRS 18 and is expected to adopt it as PFRS 18, aligning with the global timeline.

Key Changes Introduced by IFRS 18

Structured Income Statement: Entities must classify income and expenses into five categories: operating, investing, financing, income taxes, and discontinued operations. 

New Subtotals: 

1. Operating profit or loss

2. Profit or loss before financing and income taxes

Management-Defined Performance Measures (MPMs): 

1. Entities must disclose MPMs used in public communications.

2. Requires reconciliation to IFRS-defined subtotals and explanation of their relevance.

Enhanced Aggregation & Disaggregation: 

1. Clearer guidance on grouping similar items and breaking down material components.

2. Mandatory breakdown of specified expenses by nature (e.g., depreciation, employee benefits).

Cash Flow Statement Alignment: 

1. Indirect method must now begin with the new “operating profit or loss” subtotal.

Items That Remain Unchanged

Recognition and Measurement Principles: IFRS 18 does not alter how assets, liabilities, income, or expenses are recognized or measured.

Statement of Financial Position and Equity: Presentation remains largely consistent with IAS 1.

Other Comprehensive Income (OCI): No major changes to OCI presentation.

Impact in the Philippine Context

Transition Planning: Entities must prepare for retrospective application, including restating 2026 comparatives.

System & Process Updates: Chart of accounts, reporting templates, and internal controls will require revision.

Audit & Assurance: Auditors will need to assess MPM disclosures and classification judgments, increasing complexity.

Investor Communication: Enhanced transparency will improve stakeholder confidence but may require education on new metrics.

SME Considerations: While IFRS 18 applies to full IFRS reporters, its principles may influence future updates to PFRS for SMEs. 

Link to the pdf file of the IFRS 18 publication may be found at www.ifrs.org.

In a world obsessed with fast results and instant titles, there’s a deeper truth that continues to resonate across industries and generations: progress should be earned, not rushed.

“Do you see a man skillful in his work? He will stand before kings; he will not stand before obscure men.” — Proverbs 22:29 (ESV)
 

This scripture is a powerful reminder that excellence speaks for itself. Mastery, not ambition, is what opens doors to enduring influence and leadership.

In The Diary of a CEO, Steven Bartlett introduces the framework of five essential buckets: knowledge, skills, resources, network, and reputation. Many chase status before filling these buckets—especially the first two. Yet success is sustainable only when it's built on substance.

“Let the wise hear and increase in learning, and the one who understands obtain guidance.” — Proverbs 1:5

Likewise, this verse reminds us that wisdom isn’t just about knowing more—it’s about being teachable, humble, and open to lifelong learning. And that’s where the true journey begins.

My former boss I worked with in Brunei Darussalam instilled a lesson I now carry throughout my practice: there is no shortcut to hard work. The discipline to learn, to fail, to sharpen your abilities through real effort is what shapes you into a trusted professional.

Another lesson from my former boss in the pharmaceutical field: do not chase promotions—chase competence. Your next role isn’t a prize to be claimed, but a responsibility you must be prepared to carry. Focus on refining your skillset. Promotion isn’t something you demand; it’s something you naturally attract through quiet consistency and high standards.

Whether you’re starting your career or advancing through leadership, ask yourself: Am I filling my buckets? Am I learning enough to earn trust, not just titles?

True growth begins not with recognition—but with readiness. 

The 2025 World Economic Forum (WEF), held in Davos-Klosters, Switzerland, convened over 3,000 global leaders under the theme “Collaboration for the Intelligent Age”. With discussions spanning climate resilience, digital transformation, and inclusive growth, the Philippines emerged as a proactive voice in shaping the future of Southeast Asia.

Philippine Participation and Key Takeaways

Led by Finance Secretary Ralph Recto, Trade Secretary Ma. Cristina Roque, and House Speaker Martin Romualdez, the Philippine delegation showcased the country’s economic resilience, policy reforms, and investment potential. Highlights included:

• Promotion of the CREATE MORE Act, aimed at streamlining tax incentives and boosting investor confidence
• Engagements with global CEOs from Grab, GCash, AirAsia, and McKinsey to explore partnerships in fintech, infrastructure, and AI
• Positioning the Philippines as ASEAN Chair in 2026, reinforcing its role as a regional bridge for inclusive and digital economies

Despite global uncertainties, the Philippines reaffirmed its commitment to sustainable development, digital innovation, and climate action.

Impact on the Philippines

The WEF spotlighted both opportunities and risks for the country:

• Foreign investments are expected to rise, especially in digital finance, green energy, and logistics
• Trade challenges persist, including U.S. tariffs and global supply chain disruptions
• Major risks identified by WEF include economic stagnation, poverty, inflation, and food insecurity

These underscore the need for strategic reforms, inclusive growth, and resilient industries.

What Filipinos and Businesses Should Do

For Individuals:

• Embrace lifelong learning: Upskill in digital tools, sustainability, and financial literacy.
• Support local innovation: Patronize Filipino enterprises that align with climate and tech goals.
• Practice stewardship: Budget wisely, invest ethically, and prepare for economic shifts.

“The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty.” — Proverbs 21:5

For Businesses:

• Invest in digital transformation: AI, cloud services, and e-commerce are no longer optional.
• Build climate resilience: Adopt green practices and explore renewable energy solutions.
• Strengthen partnerships: Collaborate with government and global firms to scale impact.

“Two are better than one, because they have a good reward for their toil.”— Ecclesiastes 4:9

A Faith-Driven Response

The WEF’s call for collaboration resonates with the biblical principle of servant leadership and shared purpose. As the Philippines steps into a more prominent global role, the challenge is not just economic—but spiritual.

“Let each of you look not only to his own interests, but also to the interests of others.” — Philippians 2:4

“Commit your work to the Lord, and your plans will be established.” — Proverbs 16:3

Final Thought

Davos 2025 was not just a summit—it was a signal. For Filipinos and Philippine businesses, the path forward requires wisdom, collaboration, and conviction. Let us build not just for profit, but for purpose.

Legend and Sources

This article was written based on publicly available information and original commentary. Key sources and references include:

• World Economic Forum (WEF) 2025 session summaries and press releases – accessed via weforum.org
• Statements from Philippine government officials and agencies, including the Department of Finance and Department of Trade and Industry
• News articles and business features involving partnerships with Grab, GCash, AirAsia, and McKinsey (as of mid-2025)
• Biblical quotations drawn from the English Standard Version (ESV) and New International Version (NIV) of the Bible
• General economic forecasts and public commentary aligned with open government data and fair use policy

Disclaimer:  This content is intended for educational and inspirational purposes and does not reproduce proprietary materials. If any reader identifies content requiring correction or attribution, please contact our firm for prompt action.

Before you raise the walls of your vision, cultivate the soil beneath it. This timeless proverb doesn't just speak to physical labor—it maps out a strategic mindset for enterprise, stewardship, and sustainable growth. In the language of business, it’s a blueprint for preparing foundations before scaling dreams.

Robert Kiyosaki’s Rich Dad, Poor Dad echoes this wisdom with modern clarity. He draws a sharp line between assets, which place money in your pocket, and liabilities, which take it out. The key, he says, is simple but profound: invest in assets, minimize liabilities. A principle that—when truly embraced—reshapes how we steward resources, evaluate decisions, and build for the long term.

Ask any seasoned executive, and the wisdom resurfaces. When a project was once proposed, I recall our former general manager’s first question: “What’s the return on investment?” Not can we do this, but should we. Value before volume. Impact before impulse. In sound enterprise, expenses aren’t just incurred—they’re evaluated through the lens of return, resilience, and purpose.

Whether you're launching a new venture, growing your team, or navigating strategic pivots, Proverbs 24:27 offers more than spiritual insight—it’s a call to pragmatic leadership. Prepare the field. Build on assets. Question the cost. Let wisdom govern every cornerstone of the business you’re building.