Table of Contents
When you start working, you will need to become a member of the Social Security System (SSS) as part of your government obligation. Along with registering yourself to get a Tax Identification Number (TIN) with BIR and Phil Health, the SSS membership is compulsory.
After a few years of working, your status changes from single to married and later on to have a family. You notice that your financial obligations have added up and this needs to be paid sooner rather than later. You need quick cash or a short-term loan to finance immediate expenses. This is the time to avail of an SSS Salary loan.
01 of 12What is An SSS Salary Loan?
An SSS Salary loan is a cash loan available to SSS members as part of their privilege when you start paying your monthly contribution to SSS. You can be an employee, a self-employed contributor, or a volunteer member of SSS. The amount you can borrow depends on the monthly contributions you have made in the past.
02 of 12Who Can Apply for SSS Salary Loan?
As long as you are an SSS member, not only do you enjoy the benefits of being a member, but you can also get an SSS salary loan with the following eligibility requirements:
1. An existing SSS Member that is employed, self-employed, or a voluntary member can get a one-two month loan provided:
- A One-Month Loan requires thirty-six (36) posted monthly contributions to the month of loan application
- A Two-Month Loan requires seventy-two (72) posted monthly contributions to the month of the loan application.
2. The member-borrower must ensure that his/her employer is updated in the payment of SSS contributions.
3. The member-borrower does not have a record of SSS final benefit due to total permanent disability, retirement, and death.
4. The age of the member-borrower is under sixty-five (65) years old during the time of loan application.
5. The member-borrower has not been disqualified as a member and does not have any record of fraud committed against SSS.
03 of 12What are the Requirements for an SSS Salary Loan?
A member-borrower must fill up the SSS Member Loan Application Form with an SSS Digitized ID or E-6 (acknowledgment stub). Two valid government IDs must be presented, with one having a recent photo and signature of the borrower.
An ID is presented by both the authorized representative and the member borrower. The representative will file for the member-borrower and submits the SSS ID or two valid government IDs with a signature and photo for proper identification. A Letter of Authority (LOA) must be signed by both the member-borrower and the authorized representative.
Likewise, if the employer or Company’s representative will file the SSS Salary Loan, the same requirements apply. An SSS Authorized Company Representative (ACR) card and Letter of Authority are presented. The member-borrower must hand over the SSS card or the SSS E-6 acknowledgment stub.
One-month SSS Salary Loan
A one-month salary loan is equivalent to the average amount of the member borrower’s latest posted payment of 12 monthly salary credits (MSCs), or the amount requested, whichever is lower.
Two-Month SSS Salary Loan
A two-month salary loan is equivalent to twice the average amount of the member borrower’s latest posted payment of 12 MSCs. The amount is rounded off to the next level of higher salary credit, or request amount, whichever is lower.
Net Amount of SSS Salary Loan
The net amount of the SSS Salary Loan is the difference between the approved loan plus all the outstanding balance of your short-term member loans.
04 of 12How To Apply For an SSS Salary Loan Online
As of late, SSS Circular 2019-014 instructs members to file their SSS Salary Loan applications online. Unless you are under the following categories will you be allowed as a walk-in applicant:
- Calamity Loan Assistance Program (CLAP)
- Educational Assistance Loan Program (EALP)
- Emergency Loan Assistance Program (ELAP)
It’s an easy process to do an online application. But before you start, you must have the following items ready. You need an internet connection to create your SSS account in My.SSS account:
1. Register and create your account in My.SSS
2. Choose your preferred electronic loan disbursement.
- PESONet participating banks require your full name with your banking account number, not your ATM card number. The bank account name and SSS Disbursement Account Enrollment Module should be the same.
- The verified e-wallet should have the maximum wallet limit. The RTC/CPO is done via GCash, Maya, DCPay Phils, DBP, and Cash Padala through M Lhuillier.
- SSS-issued UBP Quick Card, but are not linked to government offices that start with 10 and are composed of 12-digit account numbers.
05 of 12Easy Online Application Steps to SSS Salary Loan
We have gotten so used to transacting business online that even the SSS Salary loan application has allowed its member-users to do the no-fuss process. Below is an easy guide for you to follow:
1. Go to the new SSS Website and access the SSS Member portal.
2. Choose from three SSS portals-Member, Employer, Small Business Wage Subsidy Program
3. Log in to My.SSS with user ID and password.
4. Choose the e-services tab and process to Apply for Salary Loan.
5. Choose your preferred electronic loan channel for cash disbursement.
6. Study the Disbursement Account Enrollment Module (DAEM). Ensure that you double-check your information to avoid the extra 30-day processing time due to incorrect or invalid information.
7. Enroll your mobile number or bank account depending on the electronic loan channel.
8. Wait 1-2 days for an update by text or email once the Disbursement Account Enrollment is processed and approved.
9. Apply for an SSS Salary Loan under e-services ensuring all your account details are current, and you can be reached during work hours.
10. You will see the maximum loanable amount, and decide how much you want to loan.
11. Study the Loan Disclosure Statement’s summary of:
- Net Loan (loan minus deductions)
- Balance of Past loans if any
- Monthly Amortization of the principal and interest
- Schedule of due dates and payments
12. Wait for the status of your SSS Salary Loan through email or text notification.
13. Claim the SSS Salary Loan within two days from email or text notification.
06 of 12Check The Status or Balance of an SSS Salary Loan
When you log into My.SSS the status of your loan will appear there. If the loan is under process or it is granted and active, the remaining balance will likewise appear on the page. Here’s a quick guide:
- Log on to My.SSS account.
- Click the e-services tab on the dashboard.
- Hover on the Loan tab until it shows the dropdown options.
- Click Loan Status/ Info.
07 of 12Sample Computation
Remember that as a member-borrower, you should have at least 12 Monthly Salary Credits (MSCs) to become eligible for an SSS Salary Loan. Let us assume the following details:
- Monthly Salary= PHP 20,000.00
- SSS Monthly Contribution (Employer + Employee’s Share)= PHP 2,430.00
- Salary Loan Amount (1 Month): PHP 2,430 x 12 months = PHP 29,160.00
| Loan Amount | Value of member borrower’s 12-month SSS monthly contribution |
| Interest Rate | 10% per annum (diminishing) |
| Repayment Term | Two Years Term |
| Fees | Service Fee is 1% of the loan amount |
| Penalties | 1% per month until full payment of the loan for failure to remit on due date |
08 of 12Paying Your SSS Salary Loan
A. Online Payment
Paying for your SSS Salary Loan can be done online and available to BancNet Debit cardholders or those who have a UnionBank account. This allows you to pay on time without being physically present to line up for monthly payments. It is straightforward that you can do it anywhere in the world.
However, not all payment channels can accommodate employers and individual members. The online bank and e-payment that can handle both types of members are:
- Security Bank Corporation
- Union Bank of the Philippines
- Moneygment
- GCash
Payment Through BancNet
- Register your BancNet card and log into www.bancnetonline.com.
- Click your bank on the homepage.
- Click payment after agreeing to the terms and conditions
- Fill out the required fields- Biller/Institution, Account/Subscriber Name, Bank Name, ATM Card Number, Member Number, Account Type, Amount to Pay
- Enter your ATM Pin on the keypad and click submit.
- If detailed transactions are correct and verified, click OK.
- Screenshot or print out the transaction’s details as proof of receipt, then close the transaction.
Payment Through Union Bank
- Log into your UnionBank online account
- Go to bills and choose SSS.
- Fill out your SSS number and other information.
- Type the amount of your payment, then press Pay.
- Wait for your confirmation to generate the receipt.
Payment Through Security Bank
- Log on to www.sss.gov.ph to copy the Payment Reference Number (PRN)
- Check carefully if the covered month you will pay is correct. If not, you can edit the SOA to correct it.
- Log into Security Bank Online and select Pay bills & Transfers.
- Select the SSS contributions and copy-paste the PRN as the subscriber number.
- Confirm payment details if correct.
Read More: Increase your BPI Withdrawal Limit Up to Php 100,000
B. Walk-In Payment
You need to get a Payment Reference Number (PRN) credit and transmit your SSS payment. This is given with your SSS loan, or you can request an over-the-counter PRN credit from the SSS offices or e-service centers. Below is a list of the Walk-In Payment Channels:
- SSS Branches with Automated Tellering System (ATS)
- Security Bank Corporation
- Union Bank of the Philippines
- Philippine National Bank for International Payments of OFW
- SM Mart Inc.
- Bayad Center
09 of 12Repayment Term & Payment Schedule
To avoid late payments or missing your payment deadline, take a look at your SSS number. For the regular or household help, you have 13 numbers, while the self-employed and voluntary members only have 10 numbers. Take note of the last digit of the 10th number, with the assigned due date guide for the month.
For Regular & Household Employees
| Ending 10th Digit of 13-Digit ER/HR Number | Payment Due Date of Every 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, Volunteer Members (Except OFW)
| Ending of 10th Last Digit SSS Number | Payment Due Every 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 |
10 of 12SSS Salary Loan Renewal
Based on the SSS terms and conditions, a member can apply for salary loan renewal once he/she can settle 50% of the first principal amount. It assumes that half of the payment term has lapsed. This works very well in your favor because you have proven yourself as a diligent payer of your debt, therefore can be trusted with another loan amount and loan term.
11 of 12What Happens When You Default on Your Monthly Payment?
Should you miss out on your monthly payments for a reason, you will not enjoy the full benefits when you need your SSS the most. The unpaid loan is deducted from the benefits that you can claim. That kind of defeats the purpose of why you make payments to SSS so when you need it, you can have the SSS benefits to fall back on.
For the self-employed or voluntary member, your unpaid load will be deducted from your short-term benefits including sickness, maternity, and partial disability. Should you die, get a total disability, or finally reach your retirement, under the SSS Act, the unpaid balance of your loan plus interest and penalties is deducted from the benefits of the member.
12 of 12Final Thoughts
Many SSS members only appreciate the benefits of SSS when they need it. Unless you get sick, have a disability, retire or die, these are the times the members can avail of the SSS insurance. But the SSS Salary Loan is available to an SSS Member and is a faster way to get some funding to meet your short-term needs.
To get an SSS Salary Loan, you do not need to go through a credit investigation or wait a long time before you get approved. All you need is 12-monthly contributions, and you can apply for a low-interest loan with a two-year payment term. Now you see how SSS becomes an answer to your immediate needs.
