• SSS Salary Loan

    SSS Salary Loan is a loan granted to an employed or self-employed (Presently Paying) individual or voluntary member of the Social Security System. It serves the purpose of short-term credit requirement of a member.

    Features of SSS Salary Loan

    Loan Amount

    There are two types of salary loan, one-month salary loan and two-month salary loan.

    One-month: It is the average of salary credits of the most recent 12 months of employment of the member-borrower or the applied loan amount, whichever is lower.

    Two-month: It is the average of salary credits of the most recent 12 months of employment of the borrower, rounded off to next month’s higher salary amount or the applied loan amount, whichever is lower.

    Net Amount: It is the difference between the loan granted and the sum total of outstanding balances of short term loans.

    Service Fee: 1% of the loan amount is charged as service fee. It is deducted from the loan proceeds.

    Eligibility Criteria for SSS Salary Loan

    • Presently employed, self-employed or voluntary members contributing to SSS.
    • Borrower of a one-month loan should have 36 contributions posted monthly, out of which 6 of them should have been made within 12 months post filing of the application.
    • Borrower of a two-month loan should have 72 contributions posted monthly, out of which 6 of them should have been made within 12 month of filing the application.
    • The SSS borrower must have an updated employer in the payment contributions.
    • The borrower must not come under eligibility of the final benefit including retirement, permanent disability and death.
    • Borrower should not be more than 65 years of age when filing for the loan.
    • Borrower should not be disqualified for fraud with SSS.

    Documents Requirements

    When applying for the SSS loan, along with the application for loan, the following documents need to be submitted:

    Filed by Member-Borrower

    Digitized SSS ID or acknowledgement stub (E-6) attached with any two valid Identification proofs with a recent photo. For example: Driver’s License, Passport, TIN card, Voter’s ID, Bank Account Passbook and many more.

    Filed by Authorized Representative of Borrower

    • The SS card of the authorized representative and member-borrower or any two self-attested valid IDs, with at least one photo ID.
    • A LOA (Letter of Authority) with signatures from the borrower as well as the authorized representative of the borrower.

    Filed by Authorized Representative of Employer

    • SSS issued ACR (Authorized Company Representative) card.
    • LOA issued by the employer with any two self-attested valid IDs and at least one with a recent photo.
    • SS card of the borrower or SS Form E-6 with two self-attested valid IDs, one of which should have a recent photo.

    Procedure to apply for Salary Loan

    • You can file for salary loan at the nearest branch. If you are registered at sss.gov.ph you can also submit the application online.
    • OFW members can also submit their SSS loan application at the representative offices of the SS in select countries. If a country doesn’t have an office for applying, you can send the application with documents to Philippines and get them filed at the local SSS branch with proper authentication from the Philippine Embassy.

    Terms of Payment and Payment Schedule

    The loan can be paid within a span of two years in installments every month. The amortization starts on the second month, post approval of the loan. The loan payment deadline for various groups are:

    Regular Employers

    10th Digit of the 13-digit ER number Payment Due Date (Following the applicable month)
    1 or 2 10th day of the month
    3 or 4 15th day of the month
    5 or 6 20th day of the month
    7 or 8 25th day of the month
    9 or 0 Last day of the month

    For Self-employed, Household Employers and Voluntary Members (Not OFW-members)

    10th Digit of the SS number ends in: Payment Due Date (Following the applicable month or quarter)
    1 or 2 10th day of the month
    3 or 4 15th day of the month
    5 or 6 20th day of the month
    7 or 8 25th day of the month
    9 or 0 Last day of the month

    Payment can be made at any of SSS-accredited banks, at any SSS branch with a teller or any authorized payment center of SSS.

    How to Renew Salary Loan in SSS?

    • SSS loan can be renewed once a minimum of 50% of the principal amount of the original loan is paid or 50% of the term is reached.
    • Renewal loan proceeds can be higher or equal to zero, provided previous loan’s outstanding balance is deducted.

    Loan Interest and Penalty

    • Interest charges are billed at an annual interest rate of 10% on the decreasing principal balance.
    • The interest rate remains unchanged until the principal balance is paid.
    • Any addition to the amortization amount is applicable on the principal balance.
    • If amortization amount is not paid on due date, borrower will have to make a penalty of 1% per month until the loan is repaid in full.

    Employer Responsibilities

    • It is the employer’s responsibilities to remit the monthly amortization to the SSS by deducting from the member-borrower’s payroll.
    • In case of separation of the member and borrower either voluntarily or involuntarily, the employer will have to deduct the loan balance from any benefit and remit it to SSS in full.
    • It is the responsibility of the employer to report the effective separation date from the borrower and the unpaid loan amount to the SSS.
    • The employer must obtain an updated statement of a new employee’s account from the SSS.
    • The remaining loan amount of new employees is deducted by the employer and remitted to SSS.

    Member-Borrower Responsibility

    When you change your employment company, you will have to submit your statement of account updating the loan balance with SSS, to the new employer. The new employer will then be able to deduct from your present salary starting from the amortization which is due, including any penalty or interest, if any.

    Deduction of Unpaid Loans

    When loan repayment is not done on time, the unpaid loan is charged from the benefits of the member. Deduction can be made from the following benefits:

    • Self-employed/Voluntary member – Deduction from short-term benefits such as Sickness, partial disability maternity.
    • Deduction from the amount granted in case of retirement, death of the member borrower or total disability under Social Security Act. As penalty, either the entire amount or the unpaid loan balance is charged, along with penalty or interest from the respective benefit.

    Other Conditions

    In case of excess payment on a loan, the payment can be applied to the next loan, if any or is refunded to the borrower. When there is a change in address or employer, the member-borrower should inform the Member Services Section of a SSS branch via email/mail or at the counter. Name of the borrower, signature and the SS number should be mentioned in the notice.

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