Have you ever wondered how much you’ll really pay each month for your SSS Salary Loan? Many members see “8% per annum interest” but don’t fully understand how the monthly payment (amortization) is computed — or why the amount they receive is slightly less than their approved loan.
An SSS Salary Loan is a short-term cash loan offered by the Social Security System (SSS) to active members who need financial assistance — perfect for emergencies, family needs, or temporary income gaps.
It is payable through monthly amortization (installments) over 24 months for a 2-year loan or 12 months for a 1-year loan, depending on your contribution record.
Interest rate: 8% per year based on the diminishing balance (meaning you only pay interest on the remaining principal each month).
🧾 Who Can Apply for an SSS Salary Loan?
To qualify:
Type
Minimum Contributions
Contributions in Last 12 Months
1-Year Loan
36 posted
6 required
2-Year Loan
72 posted
6 required
Other requirements:
You must be currently employed (your employer will deduct monthly payments), self-employed, or a voluntary member with updated contributions.
You must not have any existing unpaid SSS loan.
You must have filed at least one contribution in the past six months before the application.
💰 How Much Can You Borrow?
The loan amount is based on your Average Monthly Salary Credit (AMSC) — the average of your last 12 posted contributions.
Loan Type
Maximum Loanable Amount
Example
1-Year Loan
1 × AMSC or up to ₱25,000
If AMSC = ₱18,000 → Max ₱18,000
2-Year Loan
2 × AMSC or up to ₱50,000
If AMSC = ₱20,000 → Max ₱40,000
Even if your computed amount is higher, SSS caps the maximum loan at ₱25,000 (1-year) and ₱50,000 (2-year).
⚙️ SSS Loan Deductions Before Release
When your loan is approved, the full amount isn’t released 100% to your account. SSS deducts:
Service charge: 1% of approved loan.
Pro-rated interest: Interest from the date of approval until the end of the following month.
📆 Example: ₱20,000 Loan Approved on March 12, 2025
Let’s compute the pro-rated interest step by step:
Days covered:
March 12–31 = 20 days
April (full month) = 30 days → Total = 50 days
Annual interest: 8% × ₱20,000 = ₱1,600/year
Daily interest: ₱1,600 ÷ 365 = ₱4.38/day
Pro-rated interest: ₱4.38 × 50 = ₱219.18
So SSS deducts ₱219.18 upfront.
✅ Loan release = ₱20,000 − ₱200 (1% service charge) − ₱219.18 (interest) = ₱19,580.82 credited to your account.
📉 How to Compute Your Monthly Amortization
SSS uses equal monthly payments (amortization), where each payment includes:
📊 Example Amortization Table for ₱20,000 Loan (24 Months)
Month
Beginning Balance
Payment
Interest (0.667%)
Principal
Remaining Balance
1
₱20,000.00
₱904.00
₱133.33
₱770.67
₱19,229.33
2
₱19,229.33
₱904.00
₱128.20
₱775.80
₱18,453.53
3
₱18,453.53
₱904.00
₱123.02
₱780.98
₱17,672.55
4
₱17,672.55
₱904.00
₱117.82
₱786.18
₱16,886.37
5
₱16,886.37
₱904.00
₱112.58
₱791.42
₱16,094.95
6
₱16,094.95
₱904.00
₱107.30
₱796.70
₱15,298.25
7
₱15,298.25
₱904.00
₱102.00
₱802.00
₱14,496.25
8
₱14,496.25
₱904.00
₱96.64
₱807.36
₱13,688.89
9
₱13,688.89
₱904.00
₱91.26
₱812.74
₱12,876.15
10
₱12,876.15
₱904.00
₱85.84
₱818.16
₱12,057.99
11
₱12,057.99
₱904.00
₱80.39
₱823.61
₱11,234.38
12
₱11,234.38
₱904.00
₱74.90
₱829.10
₱10,405.28
13
₱10,405.28
₱904.00
₱69.37
₱834.63
₱9,570.65
14
₱9,570.65
₱904.00
₱63.80
₱840.20
₱8,730.45
15
₱8,730.45
₱904.00
₱58.20
₱845.80
₱7,884.65
16
₱7,884.65
₱904.00
₱52.56
₱851.44
₱7,033.21
17
₱7,033.21
₱904.00
₱46.89
₱857.11
₱6,176.10
18
₱6,176.10
₱904.00
₱41.17
₱862.83
₱5,313.27
19
₱5,313.27
₱904.00
₱35.42
₱868.58
₱4,444.69
20
₱4,444.69
₱904.00
₱29.63
₱874.37
₱3,570.32
21
₱3,570.32
₱904.00
₱23.80
₱880.20
₱2,690.12
22
₱2,690.12
₱904.00
₱17.93
₱886.07
₱1,804.05
23
₱1,804.05
₱904.00
₱12.03
₱891.97
₱912.08
24
₱912.08
₱904.00
₱6.08
₱897.92
₱0.00
Total Payment: ₱21,696 Total Interest Paid: ₱1,696
This means that over two years, you’ll pay ₱1,696 in total interest — not ₱3,200 — because interest decreases every month as your balance goes down.
🧮 Simplify the Process Using the SSS Salary Loan Calculator
If doing all these computations manually feels complicated, you can quickly check your estimated monthly amortization and total interest using the 👉 SSS Salary Loan Calculator.
It automatically applies:
The 8% per annum rate
The 1% service charge
The pro-rated interest (based on your approval date)
The 24-month amortization schedule
Just input your desired loan amount (₱10,000 to ₱50,000), and it will instantly show your monthly payment and total payable — perfect for planning your budget before applying.
⚠️ What Happens If You Miss a Payment?
Late payment penalty: 1% per month on the overdue amount.
Employer delay: If your employer fails to remit, SSS will hold them liable — but it’s best to check your SSS account regularly.
Default: Unpaid loans may be deducted from future SSS benefits (like sickness, maternity, or retirement).
Tip: Always ensure your employer remits on time or pay voluntarily if self-employed.
💡 Can You Pay Early?
Yes! You can pay your loan in advance or in full anytime without penalty. Doing so reduces your total interest because you shorten the loan period.
🧾 Loan Renewal Rule
You can renew your loan once:
You have paid at least 50% of your existing loan, and
At least 12 months have passed since the date of your previous loan release.
The balance from your old loan will be deducted from your new one.
✨ TL;DR Summary
Interest rate: 8% per annum on diminishing balance
Loan term: 24 months (2 years)
Service charge: 1% deducted upfront
Pro-rated interest: Deducted upfront (covers days between approval and next amortization start)
Payment method: Salary deduction or voluntary remittance
✅ Perfect for: SSS members (employed, self-employed, or voluntary) who want to know exactly how much they’ll pay monthly before applying.
❓Frequently Asked Questions
1. How is the SSS Salary Loan amortization calculated? It’s computed based on an 8% annual interest rate applied to the diminishing balance, divided into 24 equal payments.
2. Why is the released loan amount lower than what I applied for? Because of the 1% service charge and pro-rated interest deducted upfront.
3. When does the first payment start? Usually in the second month after loan approval — giving time for your employer to begin salary deductions.
4. Can I apply for a new SSS Salary Loan while I still have an existing one? Yes, once you’ve paid at least 50% of your current loan and 12 months have passed since release.
5. Will my SSS benefits be affected if I don’t pay my salary loan? Yes. SSS may deduct the unpaid balance from future benefits like maternity, sickness, or retirement claims.
💬 Final Thoughts
Understanding your SSS Salary Loan amortization table empowers you to plan your finances better. Instead of guessing how much you’ll receive or pay monthly, use the official computation rules and tools like the 👉 SSS Salary Loan Calculator.
Be an informed borrower — know your numbers, plan your budget, and use your SSS benefits wisely.
