Do I Need to Inform My Employer for SSS Salary Loan?

Applying for an SSS Salary Loan can be exciting — finally, a little financial breathing room! Pero minsan, may confusion sa process: “Kailangan ko bang sabihan si HR o employer ko kapag nag-apply ako ng salary loan?”

If you’re asking this question, you’re not alone. Many members — especially first-time borrowers or working moms — get unsure about the role of their employer when it comes to SSS loan applications.

This blog will walk you through everything you need to know — from when to inform your employer, how the approval works, and what happens after you apply, plus an easy tool to compute your possible loan amount.

🏦 What Is an SSS Salary Loan?

The SSS Salary Loan is a short-term loan offered by the Social Security System (SSS) for employed, self-employed, or voluntary members. It’s meant to provide cash assistance for emergencies, tuition, medical expenses, or short-term financial needs.

You can borrow up to one or two months of your average monthly salary credit (AMSC), depending on your contribution history.

1-year loan: Up to 1 month of AMSC (max ₱25,000)
2-year loan: Up to 2 months of AMSC (max ₱50,000)

It comes with an 8% annual interest rate (based on diminishing balance) and a 1% service charge deducted upfront.

🤔 So, Do You Need to Inform Your Employer?

Yes — if you are currently employed, your employer plays an important role in the SSS Salary Loan process.

Here’s why:

Your employer must certify your loan application.
- This means they confirm that you are an active employee and that your SSS contributions are updated.
- Without employer certification, your salary loan won’t be approved.
They will deduct your monthly amortization from your salary.
- Once approved, SSS sends a billing statement to your employer.
- Your employer automatically deducts the monthly payment from your paycheck and remits it to SSS.
They receive notifications from SSS.
- SSS sends a digital notice to your employer via their My.SSS Employer Portal.

So yes, you need to inform your employer — but only after you apply online, so they can certify your application promptly.

🧭 Step-by-Step: How the Process Works

Here’s the typical flow for employed SSS members:

Step 1: Apply Online via My.SSS

Go to your My.SSS account, click “Apply for Salary Loan”, and fill out the online form.

Step 2: Wait for Employer Certification

After submission, SSS sends an alert to your employer’s portal.
They must certify the application within 3 working days.

👉 Tip: Inform your HR or payroll department right after you apply.
This ensures they don’t miss the notification and your loan won’t be delayed.

Step 3: Loan Approval and Release

Once certified, your loan will be processed and released either via:

UMID-ATM (if enrolled)
Bank account linked to your SSS record

Step 4: Salary Deduction Begins

Amortizations start on the 2nd month after loan approval and are automatically deducted by your employer every payroll.

🧾 What If I Don’t Inform My Employer?

If you don’t inform your employer, two things might happen:

Your loan may be delayed or not processed at all.
- The system waits for your employer’s certification.
- If not done within the timeframe, the application automatically expires.
You might face payroll deduction issues.
- Your HR must know when to start deducting your amortization.
- Failure to remit on time can lead to penalties (1% per month).

👉 So always make sure to coordinate with HR or your payroll department as soon as you apply.

🏠 What If I’m Self-Employed or Voluntary?

Good news! If you’re self-employed, voluntary, or OFW member, you don’t need employer certification.

Since you handle your own contributions, you can apply and get approved directly — as long as:

You have updated SSS contributions; and
You meet the eligibility requirements below.

✅ SSS Salary Loan Requirements and Eligibility

To qualify for an SSS Salary Loan, you must meet these conditions:

For 1-Year Loan

At least 36 posted contributions,
6 of which are within the last 12 months, and
Currently employed, self-employed, or voluntary member.

For 2-Year Loan

At least 72 posted contributions,
6 of which are within the last 12 months,
Still actively contributing and with no existing overdue loans.

💰 How Much Can You Borrow?

Your loanable amount depends on your Average Monthly Salary Credit (AMSC).

1-Year Loan: 1× AMSC or ₱25,000 max
2-Year Loan: 2× AMSC or ₱50,000 max

To make this easier, try the SSS Salary Loan Calculator — it automatically computes your estimated loan amount, interest, and monthly amortization.

This tool helps you visualize how much you can borrow before even applying — perfect if you’re planning your budget or comparing loan options.

📅 Understanding Loan Interest and Deductions

The interest rate is 8% per annum based on the diminishing balance.
Here’s what that means in simple terms:

Every month, the interest is computed only on your remaining balance — so it gradually decreases as you make payments.

There’s also a 1% service charge and pro-rated interest deducted upfront for the period between approval and the start of amortization.

💡 Example:

If your ₱20,000 loan is approved on March 12, 2025, SSS charges pro-rated interest for 50 days (March 12 to April 30).

Daily interest = ₱1,600 ÷ 365 = ₱4.38
50 days × ₱4.38 = ₱219.18 deducted upfront

That’s how SSS ensures interest is fairly charged only for the actual days covered before your regular payment starts in May.

🕐 Repayment and Penalties

Term: 24 months (2 years) or 12 months (1 year)
Interest: 8% per annum
Late Payment Penalty: 1% per month on overdue amortization
Early Payment: Allowed anytime without penalty

Payments are automatically deducted by your employer and remitted to SSS. If your employment ends, you can continue paying directly to SSS branches or online.

⚠️ What If You Resign or Transfer Jobs?

If you resign, your employer will stop salary deductions — but your loan doesn’t pause.

You must:

Inform SSS immediately, and
Continue payments directly via SSS branches, payment partners, or online portals.

Failure to do so may lead to:

Penalties (1% per month)
Loan default
Deduction from future SSS benefits (e.g., maternity or retirement benefits)

🌸 Can I Apply During Maternity Leave?

Yes, you can! As long as you meet the contribution and employment requirements, maternity leave doesn’t disqualify you.

However, since your employer certifies your loan, it’s best to coordinate early before your leave starts — so the process won’t be delayed.

🧩 Common Mistakes to Avoid

❌ Forgetting to inform your employer after online application
❌ Not checking if your employer certified your loan
❌ Applying while you have an existing overdue loan
❌ Using an unlinked or inactive bank account for disbursement
❌ Assuming your loan auto-renews

🧠 TL;DR — Quick Summary

If you’re employed, yes — inform your employer right after you apply for an SSS Salary Loan.
They must certify your loan online before SSS approves and releases the amount.

✅ Key Points:

Employer certification = required for employed members
No employer certification needed for self-employed or voluntary
8% annual interest, 1% service charge, 24-month term
Payments auto-deducted from salary
Use the SSS Salary Loan Calculator to estimate your loan

❓ FAQs: Employer and SSS Salary Loan

1. Can I apply for an SSS Salary Loan without employer approval?

No. If you’re employed, SSS requires your employer’s certification before processing your loan.

2. How long does my employer have to certify my loan?

They usually have 3 working days after your online application.

3. What if my employer doesn’t certify?

Your loan request will expire automatically. Inform HR immediately after applying to avoid delays.

4. What if I already resigned?

You can still apply as a voluntary member — just make sure your contributions are updated.

5. Can my employer refuse to certify?

Generally, no — unless you have employment issues (e.g., inactive status or unpaid SSS contributions). In such cases, clarify with HR or update your records first.

🏁 Final Thoughts

Applying for an SSS Salary Loan is easier than ever — especially now that everything is online.
But remember: your employer plays a key role in verifying your employment and processing your deductions.

So before you hit “Submit,” send a quick message to HR — “Hi Ma’am/Sir, I just applied for my SSS Salary Loan, please check your portal for certification.”
That simple step can save you weeks of waiting time!

And when you’re ready to plan your budget, don’t forget to try the SSS Salary Loan Calculator to estimate how much you can borrow and what your monthly payments might look like.

Do I Need to Inform My Employer for SSS Salary Loan?