Can an Employer Deduct My SSS Salary Loan Payments from My Salary?

If you’re an employed member who has taken out an SSS Salary Loan, you might be wondering:
Can my employer deduct the loan payments directly from my salary?
The short answer is: Yes, they can — and they should.

Let’s break down why, how, and what your rights are when it comes to salary deductions for your SSS loan.

💼 Why Employers Deduct SSS Salary Loan Payments

Once your SSS Salary Loan is approved and disbursed, your employer receives a Loan Collection List (LCL) from the Social Security System. This serves as official notice that:

You have taken out a loan
You are required to repay it in monthly installments
Your employer is responsible for deducting these from your salary

This process ensures the loan gets repaid smoothly over time.

📅 When Do Deductions Begin?

Deductions start in the second month after loan approval.
For example:

If your loan was approved in March, the first deduction should be in May.

💸 How Much Will Be Deducted?

The monthly amortization is based on:

Your loan amount
The interest (10% per annum on the diminishing balance)
A payment term of 24 months

You can use an SSS Salary Loan Calculator to estimate your monthly deduction.

Example:
If you borrowed ₱20,000, your monthly amortization would be around ₱925–₱950.

📌 Employer’s Responsibility

Under SSS rules and RA 11199 (SSS Law), employers must:

Deduct the correct loan amortization amount from your salary
Remit it on time to SSS
Avoid delaying or failing to remit, which can lead to penalties

⚠️ What If the Employer Doesn’t Deduct or Remit?

If your employer:

Fails to deduct the payment
Deducts but doesn’t remit to SSS
Uses the funds for other purposes

They may be penalized, and you can report them to SSS.

Even if your employer fails to remit, you as the borrower remain liable for the loan.

❓ Can I Request to Pay It Myself?

Not if you’re employed.
SSS requires that all employed members pay via salary deduction.
Voluntary payment is only allowed for:

Self-employed
Voluntary members
Separated or resigned employees

✅ Tips for Employees

Track your deductions via your My.SSS portal
Keep your pay slips as proof of deductions
If you resign or transfer jobs, inform SSS so you can continue repayment as a voluntary member

🙋 FAQs

Q: What if I didn’t receive any loan, but my salary is being deducted?
A: Immediately verify with your HR and check your loan status on My.SSS. Report any unauthorized deductions to SSS.

Q: Can I stop the deduction if I’m financially struggling?
A: No, salary deductions are mandatory unless you’ve resigned. You may inquire about restructuring options directly with SSS.

📝 Final Thoughts

Yes, your employer can and must deduct your SSS Salary Loan payments from your salary. This is part of your loan obligation and ensures your payment is updated monthly. If your employer fails to do this properly, you have the right to file a complaint.

Always monitor your loan status to make sure your payments are recorded.

📌 Want to know how much your monthly payments will be?
Try our free SSS Salary Loan Calculator here:
🔗 SSS Salary Loan Calculator