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Is the SSS Salary Loan Deducted from Your SSS Maternity Benefit?

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Is the SSS Salary Loan Deducted from Your SSS Maternity Benefit?
A Comprehensive Guide for Filipino Moms and Employees

You’re excited to finally receive your SSS Maternity Benefit — but you suddenly remember you still have an SSS Salary Loan that hasn’t been fully paid. Then comes the question:

“Will SSS automatically deduct my salary loan from my maternity benefit?”

This is one of the most common and confusing concerns among members, especially for new mothers. The short answer: Yes, SSS may deduct your unpaid salary loan from your maternity benefit — but only under certain conditions.

In this guide, we’ll explain exactly when that happens, how SSS computes your loan balance, and what you can do to maximize your maternity benefit payout.

🧾 Understanding the SSS Salary Loan

The SSS Salary Loan is designed to help members during financial emergencies or everyday needs. It’s based on your Average Monthly Salary Credit (AMSC) and the number of posted contributions in your SSS record.

Basic Loan Terms

DetailDescription
Interest Rate8% per annum (based on diminishing balance)
Service Charge1% of the approved amount
Loan Term24 months (for 2-year loan) or 12 months (for 1-year loan)
Payment MethodAuto-deduction from salary via employer
Penalty1% per month on delayed payments

The maximum loanable amount depends on your AMSC:

  • 1-year loan → Up to 1Ă— AMSC (max ₱25,000)
  • 2-year loan → Up to 2Ă— AMSC (max ₱50,000)

👉 You can use the SSS Salary Loan Calculator to compute your loanable amount and estimate your monthly payments.

🤰 Understanding the SSS Maternity Benefit

The SSS Maternity Benefit is a cash allowance paid to female members who are unable to work due to childbirth or miscarriage.

Eligibility Requirements:

  • At least 3 monthly contributions within the 12 months before the semester of delivery or miscarriage.
  • Must notify SSS or employer about pregnancy.
  • Must not have resigned or been terminated before the date of delivery (for employed members).

Benefit Computation:
The benefit is equivalent to 100% of your average daily salary credit (ADSC) multiplied by the number of maternity leave days:

  • Normal Delivery or Miscarriage – 105 days
  • Solo Parent – 120 days
  • Caesarean Delivery – 105 days

⚖️ So, Will SSS Deduct Your Salary Loan from Maternity Benefit?

Here’s the key rule:

âś… If you have an outstanding SSS Salary Loan, SSS may deduct it from your Maternity Benefit before releasing your payout.

This is because your SSS benefits and loans are all under one member account. When you receive a benefit, SSS has the authority to offset it against any overdue or defaulted loan balance you owe.

🧩 Two Possible Scenarios

🟢 Scenario 1: You’re Still Paying, and the Loan Is Current

If your salary loan is updated and your employer continues to remit payments, SSS will not automatically deduct from your maternity benefit.

  • You’ll still receive your full maternity payout.
  • Monthly amortizations will continue through payroll deductions.

đź”´ Scenario 2: Your Loan Is Overdue or Defaulted

If your salary loan has missed or unpaid amortizations, or you’ve resigned and stopped remitting payments, SSS will automatically deduct the outstanding balance from your maternity benefit.

This helps settle your debt and avoid further penalties or interest accumulation.

đź’° Sample Computation

Let’s say you have:

  • Outstanding SSS Salary Loan: ₱20,000
  • Loan balance (including interest): ₱21,000
  • Maternity Benefit: ₱30,000

Here’s what happens:

  • SSS will deduct ₱21,000 from your maternity benefit to settle your loan.
  • You’ll receive ₱9,000 net in your bank account or via check.

If your loan is smaller, say ₱5,000, the deduction will also be smaller — you’ll receive ₱25,000 of your ₱30,000 benefit.

To check how much your current loan balance might be and its amortization, you can try the SSS Salary Loan Calculator.

🧮 Pro-Rated Interest and Deductions Explained

If your loan was approved recently, SSS deducts a pro-rated interest upfront — this covers the interest from your approval date up to the end of the following month before your regular payments begin.

Example:

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

  1. Count interest for March 12–31 (20 days) + April (30 days) = 50 days.
  2. Annual interest = ₱1,600 (8% of ₱20,000).
  3. Daily interest = ₱1,600 ÷ 365 = ₱4.38/day.
  4. Multiply ₱4.38 × 50 = ₱219.18 pro-rated interest.

This ₱219.18 is deducted upfront before loan release.

🧾 What If You’re on Maternity Leave and Still Paying a Loan?

If you’re on maternity leave but still employed:

  • Your employer continues to deduct amortizations from your salary once you return to work.
  • Your maternity benefit is not automatically reduced, as long as your loan payments are up to date.

However, if you resigned or stopped working and your salary loan remains unpaid, SSS will apply the deduction once you claim your benefit.

🔄 What Happens After Deduction?

If SSS deducts your loan from your maternity benefit:

  • You’ll receive only the remaining balance of your benefit.
  • Your loan record will be updated to “fully paid” (if the deduction covers the entire amount).
  • You may then become eligible again for a new salary loan after meeting contribution requirements.

đź“Ś Tips to Avoid Full Deduction

  1. Keep your payments updated.
    • Regularly check your SSS loan status through your My.SSS account.
  2. Settle any unpaid loan before filing maternity benefits.
    • This ensures your benefit is released in full.
  3. Coordinate with your employer.
    • Make sure your loan amortizations are correctly remitted.
  4. Use the calculator before applying.

🩵 TL;DR (Quick Summary)

  • Yes, SSS may deduct your unpaid Salary Loan from your Maternity Benefit, but only if your loan is overdue or defaulted.
  • If your loan payments are up to date, your maternity benefit will be released in full.
  • Always check your loan balance and payment status via My.SSS before filing maternity benefits.
  • You can compute your estimated amortization using the SSS Salary Loan Calculator.

🙋‍♀️ FAQs

1. Will SSS automatically deduct my loan if it’s still current?

No. Deductions only happen if your loan is overdue or defaulted.

2. Can I still apply for a salary loan while pregnant?

Yes, if you are actively employed and meet the contribution requirements.

3. What happens if my loan is deducted from my maternity benefit?

The deducted amount will be used to settle your outstanding loan balance. You’ll receive only the net benefit.

4. Can I apply for another loan after giving birth?

Yes, once your loan is fully paid and your contributions are updated.

5. How can I avoid loan deduction in the future?

Always keep your loan amortizations current, and verify with your employer that payments are remitted on time.

✨ Final Advice

Your SSS Maternity Benefit is meant to support you during a special time — your recovery and bonding with your baby. To protect your full payout, make sure your Salary Loan is updated before filing.

If you’re unsure how much is left in your balance or want to see how interest affects your total, try the SSS Salary Loan Calculator today — and take control of your SSS benefits with confidence.

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