What Is the Maximum Salary Loan in SSS? (Complete Guide for 2025)
If you’ve been paying your SSS contributions and suddenly need extra cash — maybe for school fees, home repairs, or maternity expenses — one of the most reliable options you have is the SSS Salary Loan.
But how much can you actually borrow from SSS? Is there a maximum amount? And how do you compute it correctly?
This guide breaks down everything you need to know — eligibility, loan limits, interest, deductions, and real examples — so you can apply with confidence.
🏦 What Is an SSS Salary Loan?
The SSS Salary Loan is a short-term cash loan offered by the Social Security System (SSS) to help employed, self-employed, and voluntary members cover personal needs.
It’s a secured government loan, meaning your future SSS benefits act as collateral. Repayment happens through automatic salary deductions (for employees) or direct payment (for voluntary members).
💡 How Does SSS Decide How Much You Can Borrow?
Your loanable amount depends on your Average Monthly Salary Credit (AMSC) — basically, the average salary basis of your last 12 posted contributions.
SSS checks your contribution record to determine how much you’re eligible for. The higher your contributions, the bigger your possible loan.
📊 Maximum SSS Salary Loan Amount (2025)
| Loan Type | Requirement | Maximum Loanable Amount |
|---|---|---|
| 1-Year Loan | At least 36 posted contributions (6 in the last 12 months) | Up to 1 month of AMSC or ₱25,000, whichever is lower |
| 2-Year Loan | At least 72 posted contributions (6 in the last 12 months) | Up to 2 times your AMSC or ₱50,000, whichever is lower |
📝 Example:
If your average monthly salary credit is ₱22,000, you can borrow up to:
- ₱22,000 for a 1-year loan, or
- ₱44,000 for a 2-year loan.
But since the maximum cap is ₱50,000, even high-income earners cannot go beyond that.
⚙️ How the SSS Salary Loan Is Computed
The computation includes:
- Interest rate: 8% per year on diminishing balance
- Service charge: 1% of approved loan
- Pro-rated interest: Deducted upfront, based on days from approval date to the end of the following month
- Amortization term: 12 or 24 months
- Automatic salary deduction or voluntary payment
💸 Understanding Pro-Rated Interest (Why It’s Deducted Upfront)
One detail many members miss is the pro-rated interest.
This is a small amount charged upfront to cover the days before your first monthly payment officially starts.
Example:
If your ₱20,000 loan is approved on March 12, 2025, SSS will charge interest from March 12 to April 30 — because your first payment won’t start until May 2025.
Computation:
- Annual interest = ₱20,000 × 8% = ₱1,600
- Daily interest = ₱1,600 ÷ 365 = ₱4.38/day
- Period covered = 50 days (March 12–April 30)
- Pro-rated interest = ₱4.38 × 50 = ₱219.18
🧾 So ₱219.18 will be deducted upfront before your loan is released.
This ensures fairness — you only pay interest for the actual pre-amortization period, not a fixed estimate.
📆 Example: ₱50,000 SSS Salary Loan (24 Months)
₱50,000 SSS Salary Loan — Full Amortization (24 months)
Loan amount (approved): ₱50,000
Annual interest: 8% → Monthly rate = 0.08 / 12 = 0.0066666667
Term: 24 months
Fixed monthly payment (rounded): ₱2,261.36
Note on rounding: Values are shown to 2 decimal places (centavos). The final month is adjusted so the remaining balance hits ₱0.00.
Pro-rated interest example (illustration of upfront deduction)
(Using an example approval date of April 21, 2025 — you can apply the same method for any approval date.)
- Days covered = Apr 21–30 (10 days) + May (31 days) = 41 days
- Pro-rated interest = ₱50,000 × 0.08 × 41 ÷ 365 = ₱449.32
- Service charge = 1% of ₱50,000 = ₱500.00
- Net proceeds on release = ₱50,000 − ₱500 − ₱449.32 = ₱49,050.68
Full amortization schedule (24 rows)
| Month | Beginning Balance | Monthly Payment | Interest | Principal | Remaining Balance |
|---|---|---|---|---|---|
| 1 | ₱50,000.00 | ₱2,261.36 | ₱333.33 | ₱1,928.03 | ₱48,071.97 |
| 2 | ₱48,071.97 | ₱2,261.36 | ₱320.48 | ₱1,940.88 | ₱46,131.09 |
| 3 | ₱46,131.09 | ₱2,261.36 | ₱307.54 | ₱1,953.82 | ₱44,177.27 |
| 4 | ₱44,177.27 | ₱2,261.36 | ₱294.52 | ₱1,966.84 | ₱42,210.43 |
| 5 | ₱42,210.43 | ₱2,261.36 | ₱281.40 | ₱1,979.96 | ₱40,230.47 |
| 6 | ₱40,230.47 | ₱2,261.36 | ₱268.20 | ₱1,993.16 | ₱38,237.31 |
| 7 | ₱38,237.31 | ₱2,261.36 | ₱254.92 | ₱2,006.44 | ₱36,230.87 |
| 8 | ₱36,230.87 | ₱2,261.36 | ₱241.54 | ₱2,019.82 | ₱34,211.05 |
| 9 | ₱34,211.05 | ₱2,261.36 | ₱227.41 | ₱2,033.95 | ₱32,177.10 |
| 10 | ₱32,177.10 | ₱2,261.36 | ₱214.51 | ₱2,046.85 | ₱30,130.25 |
| 11 | ₱30,130.25 | ₱2,261.36 | ₱200.87 | ₱2,060.49 | ₱28,069.76 |
| 12 | ₱28,069.76 | ₱2,261.36 | ₱187.13 | ₱2,074.23 | ₱25,995.53 |
| 13 | ₱25,995.53 | ₱2,261.36 | ₱173.30 | ₱2,088.06 | ₱23,907.47 |
| 14 | ₱23,907.47 | ₱2,261.36 | ₱159.38 | ₱2,101.98 | ₱21,805.49 |
| 15 | ₱21,805.49 | ₱2,261.36 | ₱145.37 | ₱2,115.99 | ₱19,689.50 |
| 16 | ₱19,689.50 | ₱2,261.36 | ₱131.30 | ₱2,130.06 | ₱17,559.44 |
| 17 | ₱17,559.44 | ₱2,261.36 | ₱117.06 | ₱2,144.30 | ₱15,415.14 |
| 18 | ₱15,415.14 | ₱2,261.36 | ₱102.77 | ₱2,158.59 | ₱13,256.55 |
| 19 | ₱13,256.55 | ₱2,261.36 | ₱88.38 | ₱2,172.98 | ₱11,083.57 |
| 20 | ₱11,083.57 | ₱2,261.36 | ₱73.89 | ₱2,187.47 | ₱8,896.10 |
| 21 | ₱8,896.10 | ₱2,261.36 | ₱59.31 | ₱2,202.05 | ₱6,694.05 |
| 22 | ₱6,694.05 | ₱2,261.36 | ₱44.63 | ₱2,216.73 | ₱4,477.32 |
| 23 | ₱4,477.32 | ₱2,261.36 | ₱29.85 | ₱2,231.51 | ₱2,245.81 |
| 24 | ₱2,245.81 | ₱2,261.38 | ₱14.98 | ₱2,246.40 | ₱0.00 |
Totals & key numbers
Net amount received (example): ₱50,000 − ₱500 − ₱449.32 = ₱49,050.68Let’s look at a realistic example based on the 2025 rules.
Sum of monthly payments (total paid over 24 months): ₱54,272.66
Total interest paid (approx.): ₱4,272.75
Service charge (1% on ₱50,000): ₱500.00 (deducted at release)
Pro-rated interest (example, 41 days): ₱449.32 (deducted at release)
🧮 Compute Your Own Loan Easily
Want to check how much you can borrow and how much you’ll receive after deductions?
👉 Try this SSS Salary Loan Calculator
It automatically shows:
- Loan eligibility based on your contribution record
- Service charge and pro-rated interest
- Total repayment and monthly amortization
Perfect for planning before applying!
👩💼 Eligibility Requirements
To qualify for an SSS Salary Loan:
For 1-Year Loan:
- At least 36 posted contributions
- 6 contributions within the last 12 months
For 2-Year Loan:
- At least 72 posted contributions
- 6 contributions within the last 12 months
Additional Conditions:
- Currently employed, self-employed, or voluntary member
- Employer must be up-to-date in remitting contributions
- No existing overdue SSS loan
📋 Application Process (Step-by-Step)
- Log in to your My.SSS account at sss.gov.ph
- Go to E-Services → Apply for Salary Loan
- Select Bank or UMID-ATM for loan release
- Review deductions (service charge + pro-rated interest)
- Submit and wait for approval — typically within 3–5 working days
- Funds are credited directly to your chosen bank account
⚠️ Repayment Rules and Reminders
- Payments are automatically deducted from your salary
- Voluntary or self-employed members must pay directly via accredited banks or e-wallets
- Late payments incur 1% monthly penalty
- You may pay off early without penalty
- Failure to pay can affect your future SSS benefits or loan renewals
💬 TL;DR (Summary)
- Maximum SSS Salary Loan = ₱50,000
- Interest rate = 8% per annum
- Deductions: 1% service charge + pro-rated interest
- Term: 12 or 24 months
- Must have 36 or 72 posted contributions (depending on loan type)
- Loan proceeds = approved amount minus deductions
- Amortization starts after the pro-rated period
❓ Frequently Asked Questions (FAQs)
1. How much is the maximum salary loan in SSS?
Up to ₱25,000 for a 1-year loan and ₱50,000 for a 2-year loan, depending on your Average Monthly Salary Credit (AMSC).
2. Why is my actual received amount less than what I applied for?
Because SSS deducts 1% service charge and pro-rated interest before releasing the loan.
3. How long does it take to get approved?
Usually 3–5 working days if your employer certifies your online application promptly.
4. Can I reapply before finishing my current loan?
Yes, but only after at least 50% of the original loan principal has been paid.
5. What happens if I miss payments?
You’ll be charged a 1% monthly penalty, and future SSS benefits (like maternity or retirement) may be offset.
✳️ Final Thoughts
The SSS Salary Loan is a practical way to access short-term cash using your SSS contributions as your financial backup.
Understanding how the loan limits, interest, and pro-rated deductions work helps you make smarter decisions — especially if you’re planning expenses like maternity, tuition, or home repairs.
So before applying, compute your exact amount using the
👉 SSS Salary Loan Calculator
and make sure you’re fully prepared for repayment.
