Planning to get a ₱34,000 SSS Salary Loan and want to know your exact monthly amortization and take-home amount?
You’re in the right place. This article explains in detail how much you’ll receive after deductions, how much interest you’ll pay, and how your monthly amortization is computed under SSS’s official 8% per annum interest rate — including the pro-rated interest that SSS deducts before releasing your loan.
🏦 What Is an SSS Salary Loan and How It Works
The SSS Salary Loan is a short-term loan that provides quick financial assistance to active SSS members. Payments are automatically deducted from your salary every month through your employer, so it’s hassle-free and secure.
You can choose:
1-year term: up to one (1) month of your Average Monthly Salary Credit (AMSC)
2-year term: up to two (2) times your AMSC
Since ₱34,000 exceeds ₱25,000, it falls under the 2-year (24-month) loan type.
📋 SSS Salary Loan Computation Rules Used
Rule
Description
Interest Rate
8% per annum based on diminishing principal balance
Service Charge
1% of approved loan, deducted upfront
Loan Term
24 months (2 years)
Pro-Rated Interest
Deducted upfront based on approval date → end of following month
Penalty for Late Payment
1% per month on overdue amortization
Early Payment
Allowed anytime without penalty
Start of Amortization
Usually 2nd month after loan approval
🧮 Step-by-Step Computation for ₱34,000 SSS Salary Loan
Let’s assume the loan is approved on March 12, 2025, following SSS’s standard 8% interest and 24-month term.
🧾 Step 1: Compute Deductions
Item
Description
Amount (₱)
Approved Loan Amount
Gross approved amount
34,000
Service Charge (1%)
1% × ₱34,000
340
Pro-Rated Interest (50 days @ 8%/year)
(₱34,000 × 8% ÷ 365 × 50)
373
Net Proceeds (Cash You Receive)
₱34,000 − ₱340 − ₱373
₱33,287
👉 Actual cash credited to your account: ₱33,287
🧾 Step 2: Compute Monthly Amortization
Interest rate = 8% / 12 months = 0.67% per month Term = 24 months
✅ Using the amortization formula (with diminishing balance method), the fixed monthly amortization is approximately ₱1,539 per month. ✅ Total repayment over 24 months = ₱36,936 ✅ Total interest = ₱36,936 − ₱34,000 = ₱2,936
This is especially useful if you’re comparing multiple loan amounts or approval dates.
📋 Eligibility Requirements for ₱34,000 SSS Salary Loan
Requirement
Description
SSS Membership
Must be an active member
Posted Contributions
At least 72 contributions, with 6 in the last 12 months
Employment Status
Currently employed, self-employed, or voluntary
Loan Record
No existing overdue SSS loan
Employer Compliance
Employer must be updated with SSS remittances
📉 Why SSS Deducts Pro-Rated Interest
Let’s clarify the pro-rated interest since it often confuses borrowers.
When your loan is approved mid-month, SSS charges interest for:
Remaining days of the approval month
Entire following month
For this example: Loan approved March 12, 2025 → interest charged from March 12 to April 30 (50 days).
Step
Description
Computation
1
Days covered
50 days
2
Annual interest
₱34,000 × 8% = ₱2,720/year
3
Daily interest
₱2,720 ÷ 365 = ₱7.45/day
4
Multiply by days
₱7.45 × 50 = ₱373
✅ ₱373 is deducted upfront. This ensures fairness — you’re only charged interest for the actual pre-amortization period, not an arbitrary fixed amount.
⚖️ Other Important Loan Policies
Policy
Description
Late Payment Penalty
1% per month on overdue amount
Loan Renewal
Allowed after paying 50% of the term (12 months)
Early Repayment
You may fully settle early without penalty
Default
SSS may deduct from future benefits if unpaid
👩 Example Case: ₱34,000 SSS Salary Loan for a Working Mom
Let’s say Liza, an active employee and mother of two, applies for a ₱34,000 SSS Salary Loan on March 12, 2025.
Here’s what she’ll experience:
SSS approves her ₱34,000 loan.
Deducts ₱340 (service charge) and ₱373 (pro-rated interest).
She receives ₱33,287 in her UMID-ATM.
Starting two months later, ₱1,539 is auto-deducted monthly from her salary.
After 24 months, her total repayment will be ₱36,936.
🧾 TL;DR Summary
Key Info
Details
Loan Amount
₱34,000
Service Charge
₱340
Pro-Rated Interest (50 days)
₱373
Net Proceeds (Take-home)
₱33,287
Monthly Amortization
₱1,539
Total Repayment (24 months)
₱36,936
Total Interest Paid
₱2,936
Eligibility
72 contributions, 6 recent
Penalty (if late)
1% per month
Amortization Start
2nd month after approval
❓ Frequently Asked Questions (FAQs)
1. How much will I actually receive from my ₱34,000 SSS Salary Loan? You’ll receive ₱33,287 after the 1% service charge and 50-day pro-rated interest are deducted.
2. Does the pro-rated interest change? Yes. It depends on your loan approval date and covers the exact days until the next month’s end.
3. When does repayment start? Usually on the 2nd month after approval. (Ex: approved in March → first payment in May)
4. Can I pay early to save interest? Yes. SSS allows early full repayment anytime without penalty.
5. What happens if I miss payments? A 1% per month penalty applies, and SSS can offset from your future benefits.
🌟 Final Thoughts
A ₱34,000 SSS Salary Loan gives you an easy and low-interest option when you need quick cash. While deductions (₱340 service + ₱373 pro-rated interest) slightly reduce your take-home to ₱33,287, the fixed ₱1,539 monthly payment makes it manageable and predictable.
Before applying, ensure your contributions are up to date and your employer is actively remitting to avoid delays.
If you want to double-check your numbers or simulate a different amount, use the free 👉 SSS Salary Loan Calculator.
