Planning to borrow ₱40,000 from SSS? Here’s how much you’ll actually pay every month — and how much you’ll really receive after deductions.
Many SSS members are surprised when the released amount is lower than expected. That’s because SSS automatically deducts two items before releasing the money: the 1% service charge and pro-rated interest (for up to 50 days before regular payment starts).
Let’s break down the ₱40,000 SSS Salary Loan clearly — step-by-step.
🏦 What Is an SSS Salary Loan?
The SSS Salary Loan helps employed, self-employed, and voluntary members cover short-term personal expenses. It’s one of the easiest and most affordable loans available in the Philippines.
Loan Options
Type
Maximum Amount
Term
1-Year Loan
1 × Monthly Salary Credit (max ₱25,000)
12 months
2-Year Loan
2 × Monthly Salary Credit (max ₱50,000)
24 months
Because ₱40,000 exceeds ₱25,000, this example qualifies for a 2-year (24-month) term.
⚙️ Official 2025 SSS Computation Rules
Rule
Description
Interest Rate
8 % per annum (diminishing balance)
Service Charge
1 % of loan amount (deducted upfront)
Pro-Rated Interest
50 days (approval → end of next month)
Loan Term
24 months
Penalty (if late)
1 % per month
Early Payment
Allowed anytime without penalty
Start of Amortization
Usually two months after approval
🧮 Step-by-Step ₱40,000 Salary Loan Computation
Assume approval = March 12 2025 → Interest covers March 12 – April 30 (50 days).
🧾 Step 1 – Upfront Deductions
Item
Computation
Amount (₱)
Approved Loan
—
40,000
Service Charge (1 %)
40,000 × 1 %
400
Pro-Rated Interest (50 days)
40,000 × 0.08 × 50 ÷ 365
438
Total Deductions
—
₱838
Net Proceeds (Take-Home)
40,000 − 838
₱39,162
✅ Cash you receive: ₱39,162
🧾 Step 2 – Monthly Amortization (24 Months)
Using SSS formula (8 % annual = 0.67 % monthly):
➡️ Monthly Amortization ≈ ₱1,820 ➡️ Total Repayment = ₱43,680 ➡️ Total Interest ≈ ₱3,680
Grace enjoys automatic salary deduction and no hidden fees — perfect for budget planning.
🧾 TL;DR Summary
Item
Details
Loan Amount
₱40,000
Service Charge
₱400
Pro-Rated Interest (50 days)
₱438
Total Deductions
₱838
Net Proceeds (Take-Home)
₱39,162
Monthly Amortization
₱1,820 × 24 months
Total Repayment
₱43,680
Total Interest
₱3,680
Loan Term
24 months
Penalty
1 % per month (if late)
Eligibility
72 contributions (6 recent)
❓ FAQs
1. How much will I actually get from ₱40,000? You’ll get ₱39,162 after ₱838 deductions.
2. When does repayment start? Usually two months after approval (e.g., approved March → first payment in May).
3. Can I settle the loan early? Yes! You may pay in full anytime without penalty.
4. What if I miss a payment? A 1 % penalty per month applies; SSS may deduct it from your future benefits.
5. When can I renew my loan? After paying at least 12 months (half of the term).
🌟 Final Thoughts
The ₱40,000 SSS Salary Loan gives you an affordable payment plan at 8 % annual interest. After deductions (₱838), you’ll take home ₱39,162 and repay ₱1,820 monthly for 24 months. It’s simple, transparent, and auto-deducted — ideal for SSS members needing budget-friendly cash support.
