SSS Salary Loan is a program of our Social Security System allowing members to borrow a portion of their contribution for a short term cash need.
It is the most availed loan program of the SSS. Between January 2019 to August 2019, SSS released more than Php26.33 billion worth of salary loans .
Of this figure, 1.16 million employed members availed of the said program followed by 104,000 voluntary members.
OFW member-borrowers count at 12,411 and self-employed contributors number around 13, 724.
What is Social Security System?
Social Security System or the SSS is a government-run social insurance program. Workers or members pay into the program and the Social Security will give them protection in a form of cash incentives.
Essentially, SSS emphasizes the value of work, save, invest and prosper.
It aims to promote social justice thru savings and ensure meaningful social security protection to members and their beneficiaries. This includes disability, sickness, maternity, old age, death, and other contingencies resulting in loss of income or financial burden.
SSS members can avail of maternity, sickness, disability, retirement, funeral and death benefits. Additionally, they allow qualified members to take up housing, business, educational and salary loans which we will discuss here.
Who Can Apply for an SSS Salary Loan?
In order to avail of the benefits, a person must first become a member. And to become a member, he or she must enroll in social security and fulfill the obligations of paying monthly contributions.
These are the categories of people who are required to join this program.
- Voluntary Member
- Non-working Spouse
- Overseas Filipino Workers
- Household Employee and Kasambahay
Additionally, members must have a registered SSS account online as they impose “No web registration, no salary loan” policy. This is important since it speeds up the processing of your application.
Even if you’re already registered, you need to satisfy a few requirements in order to avail of its services including the salary loan.
Here are the eligibility requirements for members.
- Must be currently employed, currently contributing self-employed or voluntary member.
- Member-borrower whose employer must be updated in the payment of contributions.
- The member-borrower has not been granted final benefit, i.e., total permanent disability, retirement and death
- Must be under sixty-five (65) years of age at the time of application
- Has not been disqualified due to fraud committed against the SSS.
There are two types of loan you can avail depending on your contribution.
- For a one-month loan, the member-borrower must have thirty six (36)posted monthly contributions. In addition, six (6) contributions of which should be within the last twelve (12) months prior to the month of filing of application.
- For a two-month loan, the member-borrower must have seventy two (72)posted monthly contributions. In addition, six (6) contributions of which should be within the last twelve (12) months prior to the month of filing of application.
How much can you apply for a Salary Loan?
Alright we’re almost there.
Now that we are eligible, its time to check how much we can apply for it.
Remember that there are different category of members. Their contributions also vary so therefore, so does the amount of loan you can get.
But here’s a general rule to see that.
A one-month salary loan is equivalent to the average of the member-borrower’s latest posted 12 Monthly Salary Credits (MSCs), or amount applied for, whichever is lower.
A two-month salary loan is equivalent to twice the average of the member-borrower’s latest posted 12 MSCs, rounded to the next higher monthly salary credit, or amount applied for, whichever is lower.
The net amount of the loan shall be the difference between the approved loan amount and all outstanding balance of short-term member loans. There is however, a 1% processing fee that will be deducted.
Monthly Salary Credits (MSC)
To understand more about Monthly Salary Credits, take a look at a picture taken from SSS Official Facebook Page.
Every salary bracket has a corresponding Monthly Salary Credits.
So for example, for one month salary loan, take the average of your latest 12-month MSC. That’s the amount you can apply for.
For the two-month salary loan, its similar to the latter but once you arrive at the average, you have to multiply it by two since it’s twice the average.
But really, you don’t need to worry about the computation for that. When applying for the SSS salary loan online, you will immediately see the available amount you can get.
Steps in Applying for SSS Salary Loan Online
Now that we know the nitty-gritty requirements and a few technical jargon, its time to hit their website and apply for the salary loan.
Assuming you already registered to their online platform, here’s what you got to do.
1. Go to SSS website and log-in as a member.
Upon visiting their website, you will be prompted with a reCAPTCHA. Just tick the box beside the “I am not a robot” text and click Submit.
On the right side of the screen, click on Member. A new window will open up. Enter your User ID and Password.
2. E-SERVICES and Apply for Salary Loan.
Upon hitting those tabs, you will be taken into this window. You will see all the necessary details including your personal data and contact info.
Additionally, you will also see your current employer and their SSS ID.
Now let’s elaborate a little bit of that image below.
If you want to change or update your contact information, Click on the blue link with the word here encircled. It will take you to another window where you can make necessary updates or just double checking the details there.
Under Loanable Amount, click on the drop down arrow and you will see how much your maximum loan can be and the minimum a well.
As for your electronic disbursement bank, you can choose among the Red Arrows if which one is more convenience for you.
In my case, I already applied for a Cash Card during my first salary loan last 2018. It was still a face to face application. Here’s my tutorial for that: How to Get Your SSS Salary Loan; Walk-in Application.
Do take note of the reminders posted and tick the check box to agree with the Terms and Conditions.
Hit Proceed to go to the next step.
3. Certification, Agreement and Promissory Note
We are almost finished with our application. Upon clicking Proceed from the previous step, this will show up.
Here you will see the net amount you will get after 1% deductions. It will also show which bank or account your loan will be credited including your certifying employer’s details.
Read carefully the Certification, Agreement and Promissory Note and click Submit if you are confident you understand them.
4. Awaiting Certification from Employer
SSS now receives your loan application. An email is also sent to your employer for them to certify your request.
The best thing to do here is to inform your employer about your intention. You can even do this in advance even before you applied for a loan just to save time.
Your application is valid for three days only. If your employer does not submit a certification during that time period, it will expire and you have to redo steps 1 to 4 again.
SSS will also send a system generated email on your registered email address. If your loan expires without being certified, you will also receive an email regarding that.
5. Loan Approved!
You will receive an SMS and email confirmation once SSS and your employer approves your loan.
The loan should be credited real fast! I re-applied on the 20th of January, got certified on the 22nd and received my loan on the 25th which is Monday.
Prior to that, I informed my company and they were happy to assist me with the certification.
The good thing about SSS Salary loan today is that its so much easier and faster than before. On my first application way back 2018, I spent three days before it was processed and waited a week for its released.
We all know how cramped and long the lines are in government institutions.
But with SSS Salary Loan Online application, you don’t even need to go out of your house and its much faster too.
May the winds be in your favor.