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SSS Salary Loan

How to Compute SSS Salary Loan Monthly Amortization

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How to Compute SSS Salary Loan Monthly Amortization (2025 Complete Guide)

Have you ever wondered how much you’ll actually pay every month for your SSS Salary Loan? Many members know the loan amount they’re approved for — ₱10,000, ₱20,000, or ₱50,000 — but they’re unsure how the monthly amortization is computed and when payments begin.

This guide explains step-by-step how to compute your SSS Salary Loan monthly amortization, how interest and deductions work, and what affects the total amount you’ll receive.

Whether you’re an employee, self-employed, or voluntary member, you’ll learn exactly how to check, compute, and plan your monthly payments — so you can manage your loan smartly and avoid penalties.

🏦 What Is an SSS Salary Loan?

The SSS Salary Loan is a short-term cash loan for active SSS members who need financial support — perfect for emergencies, education, or family needs.

It’s based on your Average Monthly Salary Credit (AMSC) and repaid through monthly amortizations automatically deducted from your salary (for employed members) or paid directly (for voluntary/self-employed).

📋 Eligibility and Requirements

Before you compute or apply, check if you qualify:

Loan TypeMinimum ContributionsAdditional Requirements
1-Year LoanAt least 36 posted contributions, 6 within the last 12 monthsCurrently employed or active self-employed member
2-Year LoanAt least 72 posted contributions, 6 within the last 12 monthsUpdated record and no existing overdue SSS loan

💰 How SSS Salary Loan Amount Is Computed

The amount you can borrow depends on your AMSC (Average Monthly Salary Credit) — the average of your last 12 months of contributions.

Loan TypeBasisMaximum Amount
1-Year LoanOne month of AMSCUp to ₱25,000
2-Year LoanTwo times AMSCUp to ₱50,000

📝 Note: Even if your AMSC is higher, the maximum approved amount will not exceed the official SSS limit.

🧮 Step-by-Step: How to Compute SSS Salary Loan Monthly Amortization

Let’s go through an actual computation example.

Example Scenario

  • Loan Amount: ₱20,000
  • Interest Rate: 8% per annum
  • Term: 24 months
  • Service Charge: 1% (₱200)
  • Pro-Rated Interest: depends on approval date (explained below)

Step 1️⃣: Compute Annual and Monthly Interest

  • Annual interest = ₱20,000 × 8% = ₱1,600 per year
  • Monthly interest rate = 8% ÷ 12 = 0.667%

Interest is computed on the diminishing balance — meaning every month, you pay interest only on what’s left of your principal.

Step 2️⃣: Determine Fixed Monthly Payment

The monthly amortization for SSS loans is determined by dividing the principal and interest over the full term.

For simplicity, SSS uses a standard amortization schedule, which makes monthly payments almost equal throughout the loan.

For a ₱20,000 loan at 8% annual interest over 24 months, the monthly payment is approximately ₱900.00.

Let’s break it down:

MonthBeginning BalancePaymentInterest (0.667%)PrincipalRemaining Balance
1₱20,000.00₱900.00₱133.40₱766.60₱19,233.40
2₱19,233.40₱900.00₱128.85₱771.15₱18,462.25
3₱18,462.25₱900.00₱123.10₱776.90₱17,685.35
4₱17,685.35₱900.00₱117.80₱782.20₱16,903.15
5₱16,903.15₱900.00₱112.76₱787.24₱16,115.91
6₱16,115.91₱900.00₱107.57₱792.43₱15,323.48
7₱15,323.48₱900.00₱102.31₱797.69₱14,525.79
8₱14,525.79₱900.00₱97.00₱803.00₱13,722.79
9₱13,722.79₱900.00₱91.53₱808.47₱12,914.32
10₱12,914.32₱900.00₱86.12₱813.88₱12,100.44
11₱12,100.44₱900.00₱80.27₱819.73₱11,280.71
12₱11,280.71₱900.00₱75.18₱824.82₱10,455.89
13₱10,455.89₱900.00₱69.94₱830.06₱9,625.83
14₱9,625.83₱900.00₱64.17₱835.83₱8,789.99
15₱8,789.99₱900.00₱58.66₱841.34₱7,948.65
16₱7,948.65₱900.00₱52.99₱847.01₱7,101.64
17₱7,101.64₱900.00₱47.37₱852.63₱6,249.01
18₱6,249.01₱900.00₱41.67₱858.33₱5,390.68
19₱5,390.68₱900.00₱35.95₱864.05₱4,526.63
20₱4,526.63₱900.00₱30.19₱869.81₱3,656.82
21₱3,656.82₱900.00₱24.41₱875.59₱2,781.23
22₱2,781.23₱900.00₱18.55₱881.45₱1,899.78
23₱1,899.78₱900.00₱12.67₱887.33₱1,012.45
24₱1,012.45₱900.00₱6.75₱893.25₱0.00

Total paid over 24 months: ₱21,696.00
Total interest paid: ₱1,696.00

✅ Your monthly amortization = ₱900.00

⚖️ Step 3️⃣: Understand Pro-Rated Interest Deduction

SSS charges pro-rated interest from the loan approval date up to the end of the following month before regular amortizations start.

Example:

If your ₱20,000 loan is approved on March 12, 2025:

  • Interest period: March 12 – April 30 = 50 days
  • Annual interest: 8% × ₱20,000 = ₱1,600
  • Daily rate: ₱1,600 ÷ 365 = ₱4.38/day
  • ₱4.38 × 50 = ₱219.18

📌 ₱219.18 will be deducted upfront from your loan proceeds.

This ensures you pay interest only for actual days covered, not a flat estimate.

🏦 Step 4️⃣: Apply Deductions to Know Net Loan Release

When SSS releases your loan, the following are deducted:

Deduction TypeBasisExample (₱20,000 Loan)
Service Charge1% of loan₱200.00
Pro-Rated InterestBased on approval date₱219.18
Total Deductions₱419.18

👉 Actual cash received = ₱20,000 − ₱419.18 = ₱19,580.82

📅 Step 5️⃣: Know When Repayment Starts

Amortization starts on the second month following approval.
So if your loan is approved in March 2025, regular deductions begin in May 2025.

Payments continue monthly for 24 months (for a two-year loan).

💻 Tip: Use the SSS Salary Loan Calculator

Instead of manual computation, you can use the SSS Salary Loan Calculator to:

  • Estimate your loanable amount
  • View monthly amortization schedule
  • See interest and pro-rated deductions
  • Plan your repayment in advance

This calculator automatically applies the 8% interest, 1% service charge, and pro-rated interest logic — the same rules used by SSS.

📆 Late Payment and Penalty Rules

  • Late Payment Penalty: 1% per month of delayed amortization.
  • Loan Renewal: Allowed once 50% of the principal is paid.
  • Loan Default: Unpaid loans are deducted from future SSS benefits.
  • Early Payment: You can pay in full anytime — no penalty.

💡 Quick Reference: Key Computation Summary

Computation ElementFormula / RuleExample (₱20,000 Loan)
Interest Rate8% per annum (0.667%/month)₱133.40 (first month)
Service Charge1% of loan₱200.00
Pro-Rated InterestDaily interest × actual days₱219.18 (50 days)
Monthly PaymentBased on amortization schedule₱904.00
Total Payment (24 mo.)₱904 × 24₱21,696.00

⚠️ Common Mistakes to Avoid

  1. ❌ Forgetting pro-rated interest — many members think the full loan amount is released, but deductions apply.
  2. ⚠️ Unverified bank account — delays release of funds.
  3. 🚫 Late employer certification — stalls your application.
  4. 🧾 Not tracking payments — check My.SSS regularly to ensure proper posting.

🕓 Sample Loan Amortization Table (₱20,000 Loan)

MonthBeginning BalancePaymentInterest (0.667%)PrincipalRemaining Balance
1₱20,000.00₱900.00₱133.40₱766.60₱19,233.40
2₱19,233.40₱900.00₱128.85₱771.15₱18,462.25
3₱18,462.25₱900.00₱123.10₱776.90₱17,685.35
4₱17,685.35₱900.00₱117.80₱782.20₱16,903.15
5₱16,903.15₱900.00₱112.76₱787.24₱16,115.91
6₱16,115.91₱900.00₱107.57₱792.43₱15,323.48
7₱15,323.48₱900.00₱102.31₱797.69₱14,525.79
8₱14,525.79₱900.00₱97.00₱803.00₱13,722.79
9₱13,722.79₱900.00₱91.53₱808.47₱12,914.32
10₱12,914.32₱900.00₱86.12₱813.88₱12,100.44
11₱12,100.44₱900.00₱80.27₱819.73₱11,280.71
12₱11,280.71₱900.00₱75.18₱824.82₱10,455.89
13₱10,455.89₱900.00₱69.94₱830.06₱9,625.83
14₱9,625.83₱900.00₱64.17₱835.83₱8,789.99
15₱8,789.99₱900.00₱58.66₱841.34₱7,948.65
16₱7,948.65₱900.00₱52.99₱847.01₱7,101.64
17₱7,101.64₱900.00₱47.37₱852.63₱6,249.01
18₱6,249.01₱900.00₱41.67₱858.33₱5,390.68
19₱5,390.68₱900.00₱35.95₱864.05₱4,526.63
20₱4,526.63₱900.00₱30.19₱869.81₱3,656.82
21₱3,656.82₱900.00₱24.41₱875.59₱2,781.23
22₱2,781.23₱900.00₱18.55₱881.45₱1,899.78
23₱1,899.78₱900.00₱12.67₱887.33₱1,012.45
24₱1,012.45₱900.00₱6.75₱893.25₱0.00

📋 TL;DR Summary

If you’re applying for an SSS Salary Loan, remember these key points:

  • 💰 Interest rate: 8% per annum (diminishing balance)
  • 🧾 Monthly payment: About ₱900 for a ₱20,000 loan (24 months)
  • 🪙 Service charge: 1% deducted upfront
  • 📆 Pro-rated interest: Around ₱200 deducted before release
  • 🏦 Amortization starts the 2nd month after approval

You can quickly check your actual amortization using the SSS Salary Loan Calculator.

🙋‍♀️ Frequently Asked Questions (FAQs)

1. How can I know my exact SSS Salary Loan monthly amortization?

Use the SSS Salary Loan Calculator to compute it automatically. It follows SSS’s 8% diminishing-balance rule.

2. Why is the amount I received smaller than my approved loan?

Because of the 1% service charge and pro-rated interest deduction before release.

3. When will SSS start deducting my monthly payment?

Payments start on the second month after your loan is approved.

4. Can I pay off my loan early?

Yes! SSS allows early or full payment anytime without penalty.

5. What happens if I miss a payment?

A 1% monthly penalty applies to the overdue amount, and unpaid balances may be deducted from your future SSS benefits.

🏁 Final Thoughts

Computing your SSS Salary Loan monthly amortization isn’t complicated once you understand the interest rate, service charge, and pro-rated deductions.

By knowing the exact numbers, you can plan your budget, avoid surprises, and even pay earlier to save on interest.

If you’re planning to apply, check your estimated payments using the
👉 SSS Salary Loan Calculator — it’s the easiest way to preview your full amortization schedule before submitting your loan.

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