What Is the “Service Fee” Shown in the SSS Voucher?

Have you ever noticed that your SSS loan voucher shows a smaller amount than what you applied for?
If you’re wondering why there’s a deduction labeled “Service Fee”, you’re not alone. Many SSS members — especially first-time borrowers — are surprised when they see this deduction right before the loan is credited to their bank account or e-wallet.

In this blog, we’ll explain what the SSS service fee really means, why it’s deducted, how much it costs, and how it affects the total cash you receive. We’ll also walk you through how to compute your SSS Salary Loan accurately using the official SSS Salary Loan Calculator.

💡 Quick Overview: How the SSS Salary Loan Works

The SSS Salary Loan is one of the most accessible financial benefits for employed, self-employed, and voluntary SSS members. It’s designed to provide short-term cash assistance to members who have made enough contributions.

🧾 Basic Rules

Interest Rate: 8% per year (based on diminishing balance)
Loan Term: 24 months for a 2-year loan, 12 months for a 1-year loan
Service Fee: 1% of the approved loan amount
Pro-rated Interest: Deducted upfront (covers the period before first amortization)
Penalty for Late Payment: 1% per month

🏷️ What Exactly Is the “Service Fee” in the SSS Loan Voucher?

When SSS approves your loan, you don’t get 100% of the approved amount. Before releasing the money, SSS deducts a 1% service charge — this is shown as the service fee on your voucher.

📊 Example:

Let’s say your approved loan is ₱20,000.

Description	Amount (₱)
Approved Loan	20,000.00
Less: Service Fee (1%)	200.00
Less: Pro-rated Interest (estimated)	219.18
Total Cash Released	₱19,580.82

So even if your loan is ₱20,000, you’ll receive only around ₱19,580 — and that’s completely normal.

🤔 Why Does SSS Charge a Service Fee?

The service fee is a small administrative cost that covers the processing and maintenance of your loan record.
Think of it as the “processing charge” similar to what banks charge when you apply for a personal loan.

It’s not an extra penalty or hidden charge.
SSS is transparent about this — the deduction is shown directly on your voucher under the “Less: Service Fee” line.

⚖️ Is the Service Fee Deducted from the Loan or Paid Separately?

Good news — you don’t need to pay it out of pocket.
The 1% service fee is automatically deducted from your approved loan before SSS transfers the funds to your disbursement account.

For instance:

You applied for ₱20,000
SSS approved ₱20,000
SSS deducts ₱200 (service fee)
You’ll receive ₱19,800 minus any pro-rated interest

🧮 How to Compute the Service Fee and Pro-rated Interest

If you want to double-check your deductions, use the SSS Salary Loan Calculator.

Here’s how you can manually understand the math:

🧩 Step-by-Step Example

Scenario: You applied for ₱20,000 and it was approved on March 12, 2025.

Service Fee (1%)
₱20,000 × 1% = ₱200
Pro-rated Interest (8% annual)
From March 12 to April 30 → 50 days
₱20,000 × 8% ÷ 365 × 50 = ₱219.18
Total Deductions:
₱200 + ₱219.18 = ₱419.18
Net Cash Released:
₱20,000 – ₱419.18 = ₱19,580.82

✅ The service fee doesn’t increase your interest or your monthly amortization — it’s just a one-time deduction at release.

📋 What Other Deductions May Appear in the SSS Loan Voucher?

Aside from the service fee, here are other possible deductions that may appear on your voucher:

Deduction Type	Description
Pro-rated Interest	Charged upfront before amortization starts
Overdue Balance (if renewing)	Remaining balance from previous SSS loan
Penalty	If you had unpaid dues before applying
Loan Renewal Interest (10%)	For those who availed penalty condonation

These deductions make the released amount smaller than your approved amount, but your loan principal remains the full approved amount (e.g., ₱20,000).

🧠 Does the Service Fee Affect My Monthly Amortization?

No.
The service fee is not part of your amortization — it’s already deducted at the start.

For a ₱20,000 two-year loan:

Term: 24 months
Annual interest: 8%
Monthly amortization (approx): ₱904.00

This monthly payment is computed from the ₱20,000 principal, not the ₱19,800 net released.

💬 Real-Life Example: “Why Did I Receive Less Than My Loan Amount?”

“I applied for ₱20,000 but only got ₱19,580 — did SSS make a mistake?”

No, that’s normal!
That difference covers the 1% service fee and pro-rated interest for the period before your first payment.

You still owe ₱20,000 — your monthly amortization is based on that amount.

🧾 How the Service Fee Appears in Your SSS Voucher

When you download your SSS Loan Voucher from your account, look for:

Approved Loan Amount: ₱20,000.00  
Less: Service Fee (1%): ₱200.00  
Less: Interest: ₱219.18  
Net Amount Payable: ₱19,580.82

This transparency helps you confirm that the deduction is part of the standard loan processing, not an error.

🔍 Common Questions About the SSS Service Fee

1. Can I request SSS to waive the service fee?

No. The 1% service fee is standard and automatically applied to all salary loans.

2. Is the service fee refundable if I cancel my loan?

No. Once the loan is processed and released, deductions are final.

3. Does the service fee change if I renew my SSS loan?

Yes, it will be recomputed as 1% of your new approved amount (after deducting your previous balance).

4. Is the service fee different from interest?

Yes. The service fee is a one-time charge. Interest is ongoing based on your outstanding principal.

5. How can I confirm the correct deductions?

Check your SSS Loan Voucher online or verify through the SSS Salary Loan Calculator.

⚙️ How to Check Your SSS Voucher

To see your actual service fee and deductions:

Log in to your My.SSS account
Go to “Inquiry” → “Loans” → “Loan Info”
Select your SSS Salary Loan
Click “View Loan Disclosure Statement” or “Voucher”
Download or screenshot for your records

🧾 TL;DR (Quick Summary)

Detail	Description
Service Fee	1% of approved loan amount, deducted upfront
Purpose	Administrative charge for processing and maintaining your loan
Impact on Loan	Reduces the cash released but not your principal
Amortization	Based on full approved loan, not the net amount
Pro-rated Interest	Additional upfront deduction for the period before first payment

📣 Key Takeaway

The “service fee” you see on your SSS voucher is not a penalty or hidden cost — it’s a standard 1% processing charge deducted before SSS releases your loan.
Understanding this helps you plan your cash flow better and avoid confusion when your released amount is smaller than what you expected.

To estimate your net loan amount, interest, and take-home cash before applying, try the SSS Salary Loan Calculator today.

What Is the “Service Fee” Shown in the SSS Voucher?