If you want to know how much you’ll actually receive and how much you’ll pay monthly, this detailed guide will walk you through the exact computation, including the pro-rated interest that SSS deducts before releasing your loan.
Let’s compute your monthly amortization, total interest, and the true “take-home” cash you’ll get.
🏦 What Is an SSS Salary Loan?
The SSS Salary Loan is a short-term financial assistance program offered to active SSS members. It’s designed to help cover personal or emergency expenses such as tuition, repairs, or medical bills.
Payments are automatically deducted from your salary every month and remitted to SSS by your employer — no need to visit the branch each month.
You can apply for:
1-year loan — up to one (1) month of your Average Monthly Salary Credit (AMSC)
2-year loan — up to two (2) times your AMSC
Because ₱35,000 exceeds ₱25,000, it falls under the 2-year (24-month) SSS loan category.
📋 Computation Rules Used in This Example
Rule
Description
Interest Rate
8% per annum (diminishing principal balance)
Loan Term
24 months (2 years)
Service Charge
1% of approved loan amount, deducted upfront
Pro-Rated Interest
Deducted upfront from approval date to end of following month
Penalty (if late)
1% per month on unpaid amortization
Early Payment
Allowed anytime without penalty
Amortization Start
Second month after loan approval
🧮 Step-by-Step Computation for ₱35,000 SSS Salary Loan
Let’s assume SSS approved the loan on March 12, 2025 (same date basis used in your earlier examples).
🧾 Step 1 – Compute Upfront Deductions
Item
Description
Amount (₱)
Approved Loan Amount
Gross amount
35,000
Service Charge (1%)
₱35,000 × 1%
350
Pro-Rated Interest (50 days @ 8%)
₱35,000 × 0.08 × 50 ÷ 365
384
Net Cash Released
₱35,000 − ₱350 − ₱384
₱34,266
✅ Cash credited to borrower’s account: ₱34,266
🧾 Step 2 – Compute Monthly Amortization
Annual Interest = 8% / 12 = 0.67% per month
Term = 24 months
Monthly amortization ≈ ₱1,586 per month Total payment over 24 months = ₱38,064 Total interest = ₱3,064
At least 72 contributions, 6 in the last 12 months
Employment Status
Employed, self-employed, or voluntary
Loan Status
No existing unpaid or overdue loan
Employer Compliance
Employer must be up to date with SSS remittances
📉 Why SSS Deducts Pro-Rated Interest Upfront
Pro-rated interest covers the days between loan approval and the start of your regular amortization. In this example (approved March 12, 2025), SSS charges interest for 50 days (March 12 – April 30).
Step
Description
Computation
1
Days covered
50 days
2
Annual interest
8% × ₱35,000 = ₱2,800/year
3
Daily interest
₱2,800 ÷ 365 = ₱7.67/day
4
Multiply by days
₱7.67 × 50 = ₱384
✅ ₱384 is deducted upfront as pro-rated interest to cover that period.
This method ensures you’re charged only for actual days before repayment starts — not an assumed 1.5-month estimate.
⚖️ Payment, Renewal, and Default Rules
Policy
Description
Late Payment Penalty
1% per month on unpaid amortization
Renewal
Allowed after paying 12 months (half the term)
Early Full Payment
Allowed without penalty
Loan Default
Future SSS benefits or salary loans may be offset to settle balance
👩 Example: ₱35,000 SSS Loan for a Working Mom
Maria, an SSS-registered employee with 6 years of continuous contributions, applies for ₱35,000 on March 12, 2025.
SSS approves ₱35,000
Deducts ₱350 (service charge) and ₱384 (pro-rated interest)
She receives ₱34,266 in her account
₱1,586 is auto-deducted monthly starting May 2025
After 24 months, she will have paid ₱38,064 in total
Maria finds the repayment easy to budget since it’s spread evenly and has no hidden charges.
🧾 TL;DR Summary
Item
Details
Loan Amount
₱35,000
Service Charge
₱350
Pro-Rated Interest (50 days)
₱384
Net Proceeds
₱34,266
Monthly Amortization
₱1,586
Total Repayment
₱38,064
Total Interest (2 years)
₱3,064
Loan Term
24 months
Penalty (if late)
1% per month
Start of Payment
2nd month after approval
Eligibility
72 contributions (6 recent) + active status
❓ Frequently Asked Questions (FAQs)
1. How much will I actually receive from ₱35,000? You’ll get ₱34,266 after ₱350 (service charge) and ₱384 (pro-rated interest) are deducted.
2. Does the pro-rated interest change for everyone? Yes. It depends on your approval date and the number of days until the next month ends.
3. When will my first payment start? Usually on the 2nd month after approval (Example: Approved March → First payment in May).
4. Can I pay off the loan early? Yes! You can settle it in full anytime without penalties — which even reduces your total interest.
5. What happens if I miss payments? A 1% monthly penalty is added to the unpaid amount, and SSS can deduct from future benefits to collect it.
🌟 Final Thoughts
A ₱35,000 SSS Salary Loan is a practical way to access low-interest cash when you need it most. You’ll receive around ₱34,266 after deductions and pay only ₱1,586 monthly for 24 months — a manageable repayment plan that’s deducted automatically from your salary.
Before applying, make sure your SSS contributions are updated and your employer is active in remittances to avoid delays.
