How to Compute Your SSS Salary Loanable Amount (Step-by-Step Guide)
If you’ve ever wondered “Magkano kaya ang pwede kong ma-loan sa SSS?”, you’re not alone. Many members are unsure how SSS computes their loanable amount — especially since it depends on your contributions and Average Monthly Salary Credit (AMSC).
In this guide, we’ll explain in simple terms how your SSS salary loan is calculated, including sample computations, eligibility rules, and deductions — so you can estimate your take-home cash before applying.
🏦 What Is an SSS Salary Loan?
The SSS Salary Loan is a cash assistance program by the Social Security System (SSS) designed to help employed, self-employed, or voluntary members with short-term financial needs.
You can apply for either:
1-year loan (equivalent to one month of your average salary), or
2-year loan (equivalent to two months of your average salary).
Your loan amount is based on your Average Monthly Salary Credit (AMSC), which SSS computes using your latest 12 months of posted contributions.
🧮 How to Compute Your SSS Salary Loanable Amount
Let’s break down how SSS determines your loanable amount — step by step.
Step 1: Find Your Average Monthly Salary Credit (AMSC)
SSS looks at your latest 12 posted contributions and gets the average of your salary credits.
Example: If your last 12 posted contributions are based on ₱20,000 per month, 👉 your AMSC = ₱20,000.
If your salary fluctuates (for example ₱18,000, ₱19,000, ₱20,000), SSS will average them:
(₱18,000 + ₱19,000 + ₱20,000) ÷ 3 = ₱19,000 AMSC
Step 2: Determine How Many Contributions You Have
If you have 36 posted contributions (with at least 6 in the past 12 months), you may apply for a 1-year loan.
If you have 72 posted contributions (with at least 6 in the past 12 months), you qualify for a 2-year loan.
Step 3: Apply the Loan Formula
Type of Loan
Loanable Amount
Example Based on ₱20,000 AMSC
1-Year Loan
1 × AMSC
₱20,000
2-Year Loan
2 × AMSC
₱40,000
However, SSS caps the maximum loanable amounts:
₱25,000 for 1-year loans
₱50,000 for 2-year loans
So even if your AMSC exceeds these limits, your maximum approved amount will still follow SSS policy.
Step 4: Deduct the 1% Service Charge
SSS automatically deducts a 1% service charge from your approved amount.
Example: If you qualified for a ₱40,000 loan: ₱40,000 × 1% = ₱400 (service charge)
Net loan proceeds after service fee: ₱40,000 – ₱400 = ₱39,600
Step 5: Deduct the Pro-Rated Interest (Before Loan Release)
SSS charges pro-rated interest upfront — covering the period from your loan approval date until the end of the following month. This ensures that interest starts accruing fairly, even before your regular amortization begins.
Example Computation:
Loan approved on March 12, 2025, ₱20,000 loan:
Days covered = March 12–31 (20 days) + April (30 days) = 50 days
Annual interest = 8% of ₱20,000 = ₱1,600
Daily interest = ₱1,600 ÷ 365 = ₱4.38/day
Pro-rated interest = ₱4.38 × 50 = ₱219.18
➡️ ₱219.18 will be deducted from your proceeds before crediting to your account.
Step 6: Get Your Final Take-Home Amount
Using the same ₱20,000 example:
Description
Amount
Approved Loan
₱20,000
Less: 1% Service Fee
₱200
Less: Pro-Rated Interest
₱219.18
Total Net Loan Released
₱19,580.82
That’s the actual amount that will be credited to your UMID-ATM or Disbursement Account Enrollment Module (DAEM)-registered bank account.
💵 Monthly Amortization Computation
For a 2-year loan, the term is 24 months, with an 8% annual interest based on the diminishing balance.
Let’s illustrate using ₱20,000 loan (2 years):
Month
Beginning Balance
Payment
Interest (0.667%)
Principal
Remaining 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
🧾 Average monthly amortization is around ₱900, depending on rounding and exact dates.
🧠 Quick Summary (TL;DR)
Topic
Key Details
Loanable Amount Basis
Average of last 12 months’ salary credits (AMSC)
1-Year Loan
36 posted contributions, 6 in last 12 months
2-Year Loan
72 posted contributions, 6 in last 12 months
Interest Rate
8% per annum, diminishing balance
Service Charge
1% deducted upfront
Pro-Rated Interest
Deducted for the days before amortization starts
Loan Term
24 months for 2-year loan
Penalty for Late Payment
1% per month
💡 Tip: Use the SSS Salary Loan Calculator
Before applying, it’s smart to simulate your loan — so you’ll know your exact monthly payments, interest, and deductions.
The minimum amount SSS can approve is ₱1,000, even if your AMSC is lower.
2. Why did I receive less than my approved loan amount?
SSS deducts the 1% service fee and pro-rated interest upfront before crediting the cash.
3. Can I increase my loanable amount?
Yes, by continuing your monthly contributions at a higher salary credit and maintaining a good repayment record.
4. What if I miss payments?
A 1% monthly penalty will be charged on missed amortizations, and you might become ineligible for future loans until settled.
5. When can I renew my loan?
You may renew your SSS Salary Loan once you’ve paid at least half of your loan term and balance.
📈 Sample Comparison Table: 1-Year vs 2-Year Loan
Loan Type
Contributions Required
Max Loan
Term
Example Monthly Payment (₱20,000 AMSC)
1-Year Loan
36 (6 in last 12)
₱25,000
12 months
₱2,250/month
2-Year Loan
72 (6 in last 12)
₱50,000
24 months
₱900/month
🏁 Final Thoughts
Knowing how to compute your SSS Salary Loanable Amount empowers you to borrow wisely and plan realistically. By understanding your AMSC, loan terms, and deductions, you avoid surprises and ensure smoother processing.
✅ Always keep your SSS contributions updated. ✅ Use the SSS Salary Loan Calculator before applying. ✅ Make payments on time to stay eligible for future loans and benefits.
With the right preparation, your SSS Salary Loan can be a valuable financial tool — not a burden.
