Last Updated on 09/23/2021 by FilipiKnow
The SSS salary loan works like any other loan: You borrow money and you repay it according to an agreed-upon schedule and interest rate.
The money you borrow may have come from your own contributions but at the end of the day, it’s still a loan so you have the obligation to pay it on time.
Not paying your loan on time or at all will prevent you from enjoying benefits from the Social Security System in times when you need them the most (e.g., SSS unemployment insurance for members who have lost their jobs).
In this guide, you’ll learn everything you need to know about paying your SSS salary loan on time and what happens in the event that you fail to do so.
Go back to the main article: How to Apply for SSS Salary Loan Online
Table of Contents
- The SSS salary loan is payable in how many years?
- When does repayment of the SSS salary loan start?
- How much is SSS salary loan interest?
- How to Pay SSS Salary Loan: A Step-by-Step Guide.
- How to Check Salary Loan Balance in SSS Using the SSS Mobile App.
- Frequently Asked Questions.
- 1. When is the SSS salary loan payment due date?
- 2. How much is the penalty for late payment of SSS salary loan?
- 3. How can I pay SSS salary loan if it’s already past due?
- 4. What happens to unpaid SSS salary loans?
- 5. I have overpaid my SSS loan. How can I refund it?
- 6. Can I pay my SSS loan in full?
- 7. Can I pay my SSS loan in advance?
- 8. Can I pay my SSS salary loan through GCash?
- 9. I will be resigning from my current job but I still have an outstanding SSS salary loan. What should I do?
The SSS salary loan is payable in how many years?
The SSS salary loan is payable within 2 years or in 24 monthly installments.
When does repayment of the SSS salary loan start?
The payment starts on the 2nd month following the date of the loan. For example, if your SSS salary loan is approved and released in March (as shown in the image below), the monthly amortization starts 2 months later (i.e., May).
The due date, on the other hand, is on the last day of the month following the applicable month (if the deadline falls on weekends or on a holiday, the payment can be made on the next business day).
Using the same example above, the first applicable month or the month when you’re scheduled to pay your first monthly amortization is May. If you fail to make a payment within this month, you still have until June 30 to settle the amount due. The same thing applies to all the succeeding months until your loan is fully paid.
How much is SSS salary loan interest?
The salary loan is payable in 24 months with an interest rate of 10% per annum based on a diminishing principal balance. This means that the interest you’ll pay each month will be based on the outstanding principal balance for that particular month until your loan is fully paid.
Using the table below as an example, the interest that will be charged from you for your first monthly amortization can be determined by getting the 10% of the loan proceeds and dividing it by 12.
Php 20,000 x 0.10 = Php 2,000
Php 2,000/12 = Php 166.67
After paying your first monthly amortization, your outstanding principal balance is now only Php 19,243.77. Based on this balance, you can now compute the interest for your second monthly amortization:
Php 19,243.77 x 0.10 = Php 1,924.377
Php 1,924.377/12 = Php 160.36
Now use the new outstanding principal balance to compute the interest for your third monthly amortization and so on and so forth until your loan is fully paid.
How to Pay SSS Salary Loan: A Step-by-Step Guide.
Employed members can pay their loans through automatic salary deductions.
Meanwhile, members who belong to other categories (i.e., OFWs, voluntary, and self-employed) must pay the loans by themselves.
Starting April 1, 2021, SSS members will be required to secure a payment reference number (PRN) first before they can pay their loans. This guide will focus on how employers and individual member-borrowers can pay their loans using the new system.
1. Obtain a Payment Reference Number (PRN).
As mentioned earlier, you can no longer pay your SSS salary loan without a PRN1. This recent change is part of the Real-Time Processing of Loans (RTPL) program of SSS which seeks to enhance and speed up the process of receiving and posting SSS loan payments.
Short for a payment reference number, the PRN is a system-generated number corresponding to your billing statement.
The use of PRN facilitates the real-time posting of payments. However, PRN for contribution payments is different from PRN for loan payments. Hence, the process of obtaining the latter is different as well.
You can get PRN in four ways:
- Over the counter – If you have time and patience to go outside, then you can obtain the PRN the old-fashioned way. You can proceed to the nearest SSS branch and inquire over the counter how you can get PRN for your SSS salary loan. Or, you can go to a self-service express terminal (SSS-ExT) at select SSS branches and get the PRN in a few clicks.
- Via email – SSS usually issues a loan billing statement every first to the sixth day of the month and sends it to the member/employer’s registered email address. The sender is usually “SSS RTPL BILLING” (see the screenshot below). The message contains the amount you need to pay, when it’s due, and the payment reference number you need to complete the payment.
- Via text – SSS also sends the latest billing statement along with the PRN to the member/employer’s registered mobile number every first to the sixth day of the month. However, based on my experience, SSS only sent one to my email address. I didn’t receive any reminder from them via SMS. Perhaps they’re still adapting to the new system, hence the technical glitches. If you want to ensure SSS has your latest mobile number, here’s a handy guide to help you.
- Via the SSS member portal (Recommended) – Aside from your email, you can also check your own SSS online account for the latest loan billing statement. Login to your account and look for “RTPL PRN” tab on the far right of the main menu. Click this to display a table containing the amount due, your outstanding balance, the applicable month, and the payment reference number (PRN). These data usually become available starting every seventh day of the month2. You can edit the amount under Amount To Be Paid and enter the specific amount you want to pay for the particular month. It can be anything higher or lower than the amount due but should not be more than the outstanding balance. Don’t forget to click Save All so the system can generate a new PRN for the new amount you’ve entered. To secure a copy of your billing statement, click the “PRN” button. Then, either take a screenshot of the billing statement or click the “Print” button at the bottom of the page to get a hard copy. If you’re going to pay over the counter at SSS, make sure to print two copies: one for you and another for SSS.
Regular and household employers can also use all of the above methods to secure PRN for loan payments. However, should they need to change or update information on their Loans Collection List, they can only do so through the last option.
First, employers must log in to their My.SSS account. Then, go to the “RTPL PRN” tab on the main menu. This will display all active PRN loans that are due for payment. Here, employers have the option to update the electronic-Loan Collection List (e-LCL) either online or offline.
- EDIT LCL – select this option if you want to update or edit the Amount to be Paid for employees included in the Loans Collection List.
- ADD RECORD – choose this if there’s a new or additional employee you want to add to an existing Loans Collection List.
- CREATE NEW LCL – click this if you want to pick a few employees from the existing list and put them in a partial Loans Colection List.
- DOWNLOAD LCL – employers who prefer to update the list offline can choose this option. It will enable them to download the list in Excel format and work on it.
- UPLOAD LCL – select this if you want to upload the edited Loans Collection List you downloaded previously.
Once the changes have been made or the edited LCL has been uploaded, employers can now click the PRN button to view, download, or print the billing statement and proceed to the next step (payment).
2. Pay your salary loan.
After obtaining the payment reference number, you have two options to pay your salary loan:
Option 1: Walk-in payment.
|SSS Salary Loan Walk-in Payment Channel||Employer||Individual Members|
|SSS Branches with Automated Tellering System (ATS)||Yes||Yes|
|Security Bank Corporation||Yes||Yes|
|Union Bank of the Philippines||Yes||Yes|
|Philippine National Bank (international)||No||Yes|
|SM Mart Inc.||Yes||Yes|
With a screenshot or printed copy of the billing statement containing the PRN and barcode, proceed to the nearest SSS office with tellering facility. Present it to the cashier along with your payment.
Aside from SSS offices, individual members and employers can also pay SSS loans at RTPL-compliant collecting partners like Bayad Center, SM Mart Inc., and banks like Security Bank, Union Bank of the Philippines, and Philippine National Bank (for OFWs).
If you’re an individual member-borrower currently based abroad, you can also pay your monthly loan amortization through the foreign branches of the Philippine National Bank, Vedtaja International Corporation, and i-Remit, Inc.
Option 2: Online payment.
|SSS Salary Loan Online Payment Channel||Employers||Individual Members|
|Security Bank Corporation||Yes||Yes|
|Union Bank of the Philippines||Yes||Yes|
|Asia United Bank||Yes||No|
|Bank of Commerce||Yes||No|
|China Bank Corporation||Yes||No|
|Metropolitan Bank and Trust Company||Yes||No|
|Philippine Bank of Communication||Yes||No|
|Philippine National Bank||Yes||No|
|Philippine Trust Company||Yes||No|
|Philippine Veterans Bank||Yes||No|
|Rizal Commercial Banking Corporation||Yes||No|
|Standard Chartered Bank||Yes||No|
|United Coconut Planters Bank||Yes||No|
If you don’t have time to go outside, you also have the option to make the payment online.
For employers, PRN loan payments can be completed via BancNet’s eGov facility which is available to account holders of the following participating banks: United Coconut Planters Bank, Standard Chartered Bank, Robinsons Bank, Rizal Commercial Banking Corporation, Philippine National Bank, Philippine Bank of Communications, MUFG Bank, Asia United Bank, Bank of Commerce, China Bank Corporation, CTBC Bank, and Metropolitan Bank.
For OFWs, voluntary, and self-employed members, online loan payments are accepted via Security Bank, Union Bank of the Philippines, and other approved collecting partners.
I don’t have an account with Security Bank so I can only share how I successfully paid my salary loan in the past using Union Bank and Moneygment.
How to pay your SSS salary loan online via Union Bank of the Philippines.
- Log in to your Union Bank online account.
- Click “Pay Bills”.
- Look for and select “Social Security System (SSS)” as your biller.
- Enter your PRN and click “Next”.
- Review the details of your transaction before clicking the “Pay” button.
- Enter the one-time password (OTP) sent to your mobile number to confirm payment.
How to pay your SSS salary loan online using Moneygment app.
- Download the Moneygment app on your phone;
- Open the app and click ‘Register Now’ to create an account;
- Once you already have an account, reopen the app and log in with your email address and password;
- Click ‘Go to wallet’ on your dashboard. Select Top-up and enter the desired amount, taking into consideration the amount of the loan you want to pay and the service fee that comes with paying through the Moneygment app. Once the amount is final, click ‘Confirm’;
- Choose how you want to load your Moneygment wallet. As of this writing, you can pay through bank deposit, ECPay, Dragonpay, 7-11, or PayPal. If you’re already using online banking or you already have GCash, Dragonpay is the best way to go;
- Once the money is in your wallet, it’s time to pay your salary loan. To do it, go back to your dashboard and click ‘Pay Pag-IBIG, Philhealth & SSS’;
- Select the SSS tab and in the drop-down menu in front of ‘SSS PAYMENT’, choose ‘Salary Loan’ instead of the default ‘Contribution’;
- Click the toggle button beside the question “Already have a PRN?”. Then, enter your PRN.
- Double-check if the information is correct and then type in the exact amount of loan that you want to pay in the designated field. Click ‘Submit’;
- Select ‘Pay with Wallet’ and click ‘Proceed’;
- A confirmation email will be sent to you to confirm that the payment is now being processed. Take note it may take 2 or more days for your payment to be processed if you’re making it through the Moneygment app so make sure you’re not making the said payment on the exact day when your monthly amortization is due.
3. Wait for your payment to be posted.
After completing the payment, you’ll be notified via email or text message when the payment is confirmed and posted.
How to Check Salary Loan Balance in SSS Using the SSS Mobile App.
With the launch of the enhanced SSS mobile app3, checking your SSS salary loan balance is easier than ever.
To check the remaining balance of your SSS salary loan, follow these steps:
1. Install the SSS mobile app on your phone.
2. Log in using your user ID and password.
These are the same login credentials you use to access the SSS member portal. In case you haven’t created an account yet, follow this easy registration guide. Meanwhile, click here to recover your account in case you’ve forgotten your SSS user ID, password, or both.
3. Click the floating “+” icon.
4. Under LOANS, select Balance.
5. View your outstanding loan balance.
Check if your recent payment was posted in real-time and deducted from your existing balance.
You can now also use the app to apply for a salary loan and check the status of your application.
You can also try the automated text messaging service but based on my experience, the service for checking the loan balance is always unavailable.
If you’re an employed member who is paying your loan via automatic salary deduction, always make sure that your payments are up to date. In case the payments aren’t posted in the system yet, you can request a copy of the SSS salary loan collection list from your employer to prove that the loan payments have indeed been deducted from your salary and remitted to the SSS.
In case the member has proven that the employer has intentionally failed to remit the loan payments to SSS, the member-borrower is encouraged to file a complaint against the delinquent employer by submitting an Affidavit or Sinumpaang Salaysay to any SSS branch office.
Go back to the main article: How to Apply for SSS Salary Loan Online: An Ultimate Guide
Frequently Asked Questions.
1. When is the SSS salary loan payment due date?
The deadline for payment of monthly loan amortization is on or before the last day of the month following the applicable month. For example, your loan amortization for the month of June can be paid until the last day of the following month, which is July 31. In case the deadline falls on a weekend or a holiday, the payment can be made on the next working day.
2. How much is the penalty for late payment of SSS salary loan?
If the monthly amortization is not remitted on the due date, it will bear a penalty of 1% per month until the loan is fully paid. Even if the delay is a fraction of a month, the amortization will still be charged a full month penalty.
3. How can I pay SSS salary loan if it’s already past due?
In case you fail to pay your monthly loan amortization on time, it will start incurring a penalty of 1% per month. To keep your loan obligations from ballooning, make sure to pay your unsettled loan amortization together with the penalty fee not long after the supposed deadline. You can follow the same procedure above to pay for loan amortizations that are already past due.
4. What happens to unpaid SSS salary loans?
A member’s failure to pay more than 6 monthly amortizations will result in loan default. A defaulted account incurs 10% interest per annum on the outstanding principal balance as well as a 1% penalty per month on unpaid principal and interest.
These unpaid obligations of a defaulted account will be deducted from the future benefits that will be claimed by the member. For example, the unpaid loans (together with the interest and penalty) of a voluntary/self-employed member will be deducted from either short-term benefits like sickness benefit or from the member’s death, total disability, or retirement benefit, whichever comes first.
5. I have overpaid my SSS loan. How can I refund it?
You may go to the nearest SSS branch office to have it refunded. Otherwise, any over-payment in your current loan will be applied to the subsequent salary loan you will avail of in the future.
6. Can I pay my SSS loan in full?
Yes. To pay your remaining loan balance in full, log in to the SSS member portal and click “RTPL PRN” on the main menu. Make sure you haven’t paid your most recent loan bill yet otherwise the billing statement won’t be displayed. Look for “Amount to be Paid” and enter the exact amount of your outstanding balance. Click “Save All” and then proceed with the payment using the latest PRN.
7. Can I pay my SSS loan in advance?
Yes. To pay your SSS loan in advance, simply follow the same instructions in the previous section. You can either pay the outstanding balance in full or just enter the amount you can afford. Save the changes and then pay the indicated amount using the same PRN.
8. Can I pay my SSS salary loan through GCash?
As of this writing (August 2021), e-wallets like GCash and PayMaya still can’t be used to pay for SSS salary loans. This is contrary to what numerous web articles and YouTube videos claim that you can now pay your monthly loan amortization using GCash. We’ll update this article once SSS releases an official announcement declaring GCash or PayMaya as an authorized payment partner. For now, you can choose one of the methods discussed above to pay SSS salary loan online.
Meanwhile, SSS members can still use GCash to pay their regular monthly contributions, provided they have generated a PRN beforehand.
9. I will be resigning from my current job but I still have an outstanding SSS salary loan. What should I do?
Employed member-borrowers pay their loan amortizations through salary deduction. Therefore, you must coordinate with your company’s HR department to ensure the proper payment arrangement will be put in place. Depending on your request, the HR department will either settle your loan by deducting from your separation pay or remove your name from the collection list so you can continue paying the loan on your own. If you choose the latter, you will continue paying your loan amortization as a voluntary member (click here to know how to update your SSS membership status).
Keep in mind that your loan will keep incurring a penalty fee of 1% per month if you stop paying after resigning from your job. To prevent these fees from accumulating, continue paying as a voluntary member until you find another job. Once you become employed again, submit your loan SOA (Statement of Account) to your new employer so you can resume loan payment via salary deduction. You can obtain the SOA from your My.SSS account or by requesting it at the nearest SSS branch.
Go back to the main article: How to Apply for SSS Salary Loan Online
- Compulsory use of payment reference numbers for short-term SSS loan payments starts April 1. (2021). Retrieved 5 March 2021, from https://www.sunstar.com.ph/article/1885112/Pampanga/Business/Compulsory-use-of-payment-reference-numbers-for-short-term-SSS-loan-payments-starts-April-1
- Social Security System (SSS). (2021). SSS implements mandatory use of PRN for loan payments starting July 1. Retrieved from https://www.sss.gov.ph/sss/appmanager/pages.jsp?page=PR2021_022
- SSS unveils ‘improved’ version of mobile app. (2021). Retrieved 28 August 2021, from https://news.abs-cbn.com/business/06/30/21/sss-improved-mobile-app