What Does “Net Proceeds” Mean on the SSS Loan Voucher?

If you recently applied for an SSS Salary Loan, you probably noticed a section in your SSS loan voucher labeled “Net Proceeds.”

Many members get confused when they see that the net proceeds are less than their approved loan amount. Don’t worry — that doesn’t mean SSS deducted something unfairly. It simply shows how your loan was processed, charged, and released according to SSS rules.

This article explains in simple terms what “net proceeds” mean, why it’s different from your approved loan amount, and how to compute it accurately using the official SSS Salary Loan Calculator.

🏦 What Is an SSS Salary Loan?

The SSS Salary Loan is a short-term cash assistance program by the Social Security System (SSS) for employed, self-employed, or voluntary members who need quick financial support.

It’s designed to help members cover personal, medical, or emergency expenses — repayable through salary deductions or voluntary payments.

Your approved loan amount depends on your Average Monthly Salary Credit (AMSC) and your total number of posted contributions.

📄 What Does “Net Proceeds” Mean on the Loan Voucher?

“Net proceeds” is the actual amount credited to your account (via check or bank transfer) after all standard deductions are made from your approved loan.

In short:

Net proceeds = Approved Loan Amount – Deductions

The common deductions are:

Service charge – 1% of your approved loan amount
Pro-rated interest – interest charged upfront for the period before your first monthly amortization
Outstanding balance (if you had a previous SSS loan not yet fully paid)

So, even if your approved loan is ₱20,000, your net proceeds could be slightly lower — usually around ₱19,500–₱19,700 — depending on the deductions.

🧾 Example: How SSS Calculates Net Proceeds

Let’s use a simple example to make this clearer.

Scenario:

Approved Loan: ₱20,000
Loan Approval Date: March 12, 2025
Term: 24 months (2-year loan)

Step 1. Compute Service Charge

1% of ₱20,000 = ₱200

Step 2. Compute Pro-rated Interest

SSS charges 8% per year based on your diminishing balance.

For this example:

Coverage = March 12–31 (20 days) + full April (30 days) = 50 days total
Annual interest = ₱20,000 × 8% = ₱1,600 per year
Daily interest = ₱1,600 ÷ 365 = ₱4.38/day
Pro-rated interest = ₱4.38 × 50 = ₱219

Step 3. Deduct Total

₱20,000 – ₱200 (service charge) – ₱219 (interest) =
✅ ₱19,581 net proceeds

That’s the amount SSS will actually release to your account.

💰 Why Does SSS Deduct Interest Before Releasing the Loan?

This deduction is called pro-rated interest, and it ensures fairness.

Instead of charging you for a full month right away, SSS only charges for the actual number of days between loan approval and the start of your first amortization month.

This prevents overcharging and ensures the total interest stays proportional to your real usage time.

🧮 Compute Your Loan Easily with the SSS Salary Loan Calculator

If you want to see how much you’ll receive after deductions, use the SSS Salary Loan Calculator.

It helps you:

Estimate net proceeds (actual take-home loan)
Compute monthly amortization
Understand interest and service charge deductions

💡 Tip: Use this tool before applying so you’ll know exactly how much will be credited to your account.

📊 Summary of Typical SSS Loan Deductions

Deduction Type	Description	Typical Range
Service Charge	1% of approved loan	₱100–₱500
Pro-rated Interest	Charged upfront for days before amortization	₱100–₱400
Outstanding Balance	Deducted if you have an existing unpaid loan	Varies
Total Deduction	Sum of all deductions	₱200–₱800
Net Proceeds	Actual amount released	Approved Loan – Total Deductions

👩‍💼 Example: Net Proceeds for Different Loan Amounts

Approved Loan	Term	Service Charge	Est. Pro-rated Interest	Net Proceeds
₱10,000	24 months	₱100	₱120	₱9,780
₱20,000	24 months	₱200	₱219	₱19,581
₱25,000	24 months	₱250	₱274	₱24,476

Note: These are estimates. Actual deductions vary depending on your exact approval date and SSS computation.

📝 Other Important SSS Loan Computation Rules

Factor	Details
Interest Rate	8% per annum (diminishing balance)
Loan Term	24 months (2 years)
Eligibility	Must have 36 or 72 contributions depending on loan type
Service Charge	1% upfront
Late Payment Penalty	1% per month
Loan Renewal	Allowed after paying at least 50% of total amortization
Repayment	Salary deduction or voluntary payment
Early Repayment	Allowed anytime without penalty

💡 Why Understanding “Net Proceeds” Matters

Knowing your net proceeds helps you:

Avoid confusion when the released amount is smaller than expected
Budget accurately since you’ll know the actual cash you’ll receive
Track whether SSS applied deductions correctly
Plan for repayment better

Many members mistakenly think SSS “cut” their loan, but it’s just automatic deductions applied for fairness and accuracy.

💬 TL;DR Summary

Net Proceeds = The actual amount you’ll receive after SSS deducts service charge, pro-rated interest, and any existing balance.

If your approved loan is ₱20,000, expect around ₱19,500–₱19,700 credited to your account.

Use the SSS Salary Loan Calculator to see your estimate before applying.

❓ FAQs About “Net Proceeds” on the SSS Loan Voucher

1. Why is my net proceeds lower than the approved loan?

Because SSS automatically deducts the 1% service charge, pro-rated interest, and any unpaid balance from your previous loan.

2. Is pro-rated interest refundable?

No. It’s part of the standard SSS loan computation to cover the days before your first amortization.

3. Can I request to remove deductions?

No, deductions are fixed and required under SSS loan computation rules.

4. What if my voucher shows a very low amount?

Check if you still have an existing unpaid or overdue SSS loan — this can reduce your net proceeds significantly.

5. How can I see my net proceeds online?

Log in to your My.SSS account, go to “Inquiry” → “Loans Info” → “Salary Loan”, then open your Loan Voucher to view the details.

🏁 Final Thoughts

Understanding what “net proceeds” means on your SSS loan voucher helps you manage your expectations and plan your finances better.

Always review your voucher carefully — and before applying, use the SSS Salary Loan Calculator to check your estimated take-home amount.

By knowing how the deductions work, you’ll have full control over your loan, repayment, and budgeting — ensuring you maximize the benefit of your SSS Salary Loan.

What Does “Net Proceeds” Mean on the SSS Loan Voucher?