What Will Happen to My SSS Salary Loan If I Resign?
Thinking of resigning but still have an active SSS Salary Loan? Don’t worry — you’re not alone. Many employees in the Philippines face this question:
“Paano na ‘yung loan ko sa SSS kapag nag-resign ako?”
This guide will walk you through everything you need to know — from what happens after resignation, how to continue payments, and what you can do to avoid penalties or benefit deductions later on.
🏦 What Is an SSS Salary Loan?
An SSS Salary Loan is a short-term cash loan given to active SSS members. It’s designed to help employees and self-employed members during financial needs, repaid monthly through payroll deduction or direct payment.
- Interest rate: 8% per year (based on diminishing balance)
- Loan term: 24 months (2 years)
- Service fee: 1% deducted upfront
- Pro-rated interest: Deducted before loan release based on approval date (more on this below)
To know exactly how much you can borrow and your estimated monthly amortization, you can use the
👉 SSS Salary Loan Calculator
👩💼 What Happens to Your SSS Salary Loan After You Resign?
Once you resign, your employer stops deducting your monthly amortization from your salary.
But your loan obligation doesn’t stop — you’re still responsible for completing your payments directly to SSS.
Here’s what happens step-by-step:
- Employer stops remitting payments.
SSS will no longer receive salary deductions from your company. - Your loan becomes your personal responsibility.
You must pay directly to SSS via their online or partner payment channels. - If you don’t pay, penalties apply.
A 1% monthly penalty is added for every missed month. - Future SSS benefits may be affected.
Any unpaid loan may be deducted from future benefits (e.g., maternity, sickness, or retirement). - You can still continue paying voluntarily.
Even as a voluntary or self-employed member, you can resume your amortization.
🧾 Example: ₱30,000 SSS Salary Loan (24 Months)
Here’s a simple amortization table for a ₱30,000 SSS Salary Loan with 8% annual interest.
It includes pro-rated interest, assuming the loan was approved on March 12, 2025.
📆 Pro-Rated Interest Computation (Before Loan Release)
| Step | Description | Formula | Result |
|---|---|---|---|
| 1 | Count days from March 12 to April 30 | 20 (March) + 30 (April) = 50 days | 50 days |
| 2 | Annual interest | 8% × ₱30,000 | ₱2,400/year |
| 3 | Daily interest | ₱2,400 ÷ 365 | ₱6.58/day |
| 4 | Multiply by 50 days | ₱6.58 × 50 | ₱329.04 |
🧮 ₱329.04 pro-rated interest will be deducted upfront from your loan before release.
💰 Simplified Amortization Table
| Month | Beginning Balance | Monthly Payment | Interest | Principal | Remaining Balance |
|---|---|---|---|---|---|
| 1 | ₱30,000 | ₱1,350 | ₱200 | ₱1,150 | ₱28,850 |
| 2 | ₱28,850 | ₱1,350 | ₱192 | ₱1,158 | ₱27,692 |
| 3 | ₱27,692 | ₱1,350 | ₱185 | ₱1,165 | ₱26,527 |
| 4 | ₱26,527 | ₱1,350 | ₱177 | ₱1,173 | ₱25,354 |
| 5 | ₱25,354 | ₱1,350 | ₱169 | ₱1,181 | ₱24,173 |
| 6 | ₱24,173 | ₱1,350 | ₱162 | ₱1,188 | ₱22,985 |
| 7 | ₱22,985 | ₱1,350 | ₱153 | ₱1,197 | ₱21,788 |
| 8 | ₱21,788 | ₱1,350 | ₱145 | ₱1,205 | ₱20,583 |
| 9 | ₱20,583 | ₱1,350 | ₱137 | ₱1,213 | ₱19,370 |
| 10 | ₱19,370 | ₱1,350 | ₱129 | ₱1,221 | ₱18,149 |
| 11 | ₱18,149 | ₱1,350 | ₱121 | ₱1,229 | ₱16,920 |
| 12 | ₱16,920 | ₱1,350 | ₱113 | ₱1,237 | ₱15,683 |
| 13 | ₱15,683 | ₱1,350 | ₱105 | ₱1,245 | ₱14,438 |
| 14 | ₱14,438 | ₱1,350 | ₱96 | ₱1,254 | ₱13,184 |
| 15 | ₱13,184 | ₱1,350 | ₱88 | ₱1,262 | ₱11,922 |
| 16 | ₱11,922 | ₱1,350 | ₱80 | ₱1,270 | ₱10,652 |
| 17 | ₱10,652 | ₱1,350 | ₱71 | ₱1,279 | ₱9,373 |
| 18 | ₱9,373 | ₱1,350 | ₱63 | ₱1,287 | ₱8,086 |
| 19 | ₱8,086 | ₱1,350 | ₱54 | ₱1,296 | ₱6,790 |
| 20 | ₱6,790 | ₱1,350 | ₱45 | ₱1,305 | ₱5,485 |
| 21 | ₱5,485 | ₱1,350 | ₱37 | ₱1,313 | ₱4,172 |
| 22 | ₱4,172 | ₱1,350 | ₱28 | ₱1,322 | ₱2,850 |
| 23 | ₱2,850 | ₱1,350 | ₱19 | ₱1,331 | ₱1,519 |
| 24 | ₱1,519 | ₱1,350 | ₱10 | ₱1,340 | ₱0 |
Summary:
- Total payments: ₱32,400
- Total interest: ~₱2,400
- Upfront pro-rated interest: ₱329 (deducted before release)
- Service charge: ₱300 (1%)
💵 Actual amount received: ₱30,000 − ₱300 − ₱329 = ₱29,371
🧍 What If You Don’t Pay After Resigning?
If you stop paying your loan after leaving your job, SSS will still collect it later. Here’s what may happen:
| Situation | Result |
|---|---|
| You ignore payments for months | 1% monthly penalty will be added. |
| You apply for another SSS loan | Your old balance will be deducted first. |
| You claim your final benefits (retirement, maternity, etc.) | SSS will automatically deduct your unpaid loan. |
| You rejoin employment | The new employer will start salary deductions again (if you authorize). |
👉 Tip: Don’t wait for SSS to collect. Continue paying voluntarily to avoid ballooning interest.
💳 How to Continue Paying Your SSS Salary Loan After Resignation
Option 1: Pay Online via My.SSS
- Log in to your My.SSS account.
- Generate a PRN (Payment Reference Number) for your salary loan.
- Pay through online banking, GCash, Maya, or accredited partners.
Option 2: Over-the-Counter Payments
You can also pay at:
- SSS branch cashier
- Bayad Center
- SM Business Center
- GCash partner outlets
Option 3: Voluntary Member Setup
If you plan to be self-employed or a freelancer:
- Update your membership status to Voluntary or Self-Employed.
- Continue regular SSS contributions.
- Pay your monthly loan amortization using your new PRN.
📊 Why SSS Charges Pro-Rated Interest (Explained Simply)
SSS applies pro-rated interest because your loan doesn’t start amortizing right away.
For fairness, SSS charges interest only for the actual days from approval to your first due month — not a full month estimate.
Example:
Loan approved on March 12 → Regular amortization starts in May
SSS deducts interest for March 12–April 30 (50 days) upfront.
That ensures your repayment starts evenly aligned with your loan’s actual release period.
⚠️ Important Reminders If You’re About to Resign
✅ Settle all pending amortizations before your last day.
✅ Update your SSS record (employment status and contact info).
✅ Inform SSS if your employer missed remittances.
✅ Continue payments as a voluntary member to avoid penalties.
✅ Keep your payment receipts or PRN confirmations.
🧠 TL;DR (Quick Summary)
If you resign while still paying your SSS Salary Loan, you are still required to continue paying directly to SSS.
- You can switch to voluntary payment.
- Missed payments add 1% monthly penalty.
- Unpaid balances may be deducted from your future SSS benefits.
👉 Check your monthly amortization using the
SSS Salary Loan Calculator
🙋 FAQs: SSS Salary Loan and Resignation
1. Can I apply for a new SSS Salary Loan after resigning?
Yes, but only after fully paying your previous loan and meeting the new contribution requirements as a voluntary or self-employed member.
2. Will SSS contact me if I miss payments after resigning?
Not always — but penalties accumulate monthly, so it’s your responsibility to pay.
3. Can I transfer my loan to my new employer?
Yes, once you’re hired again. Inform your new employer to resume salary deductions for your loan.
4. What if my employer failed to remit my last deductions?
You can report it to SSS and present payslips showing deductions. SSS may follow up with your former employer.
5. Can I pay my entire loan balance in advance?
Absolutely. Early repayment has no penalty, and you’ll save on interest.
