What Happens to Delinquent SSS Salary Loans?


What happens if I have a delinquent SSS Salary Loan?

If you have an unpaid SSS salary loan, you will not be able to enjoy your other SSS benefits.

This means that if you will file
a sickness benefit claim,
or a maternity benefit claim,
or a disability benefit claim,
your delinquent salary loan plus penalties and interests will be deducted from
your sickness benefit,
or your maternity benefit,
or your disability benefit.

After the deduction, and you still have a loan balance, you remaining loan balance will continue to accumulate penalties and interests until the time your pension or retirement lump sum is computed.

If your benefit is a monthly pension, your monthly pension will be used to pay off your remaining loan balance from month to month until your loan balance is fully paid off.  You'll start to receive your monthly pension only after your loan balance is fully paid off.

If your benefit is a retirement lump sum, your remaining loan balance will be deducted in full from your lump sum.

Very Important Advice for Employees with SSS Salary Loans

If you are resigning and moving to another company, and your full payment for your SSS salary loan balance was not deducted from your last pay or separation pay, remember to give your loan voucher or printout to your new employer and ask them to deduct your monthly payments and remit them to SSS.

It's always easier to pay our SSS loans through our employers.  If we hold the payment money, we might be tempted to spend it on other things.

If your previous employer deducted your SSS loan balance in full, ask for a receipt or a documentary proof. Ask them when it will be remitted to SSS, then check later on with SSS if your loan payment was remitted by your previous company.

Danger of Ignoring our SSS Salary Loans

We have received lots of comments from SSS members complaining about how fast their SSS loans have ballooned to super big amounts. See the following:

  • I received a loan of 13,500 in 2010. When I resigned, I had a balance of 5,400. I thought my former employer deducted my loan balance from my last pay. I found out too late that they did not. This March 17, 2014, the 5,400 balance has increased to 9,004.

  • June 2012 was my 1st loan amounting to 15,000. Total amount paid was only 3,937.44. Last payment done in January 2013. As of today, January 13, 2015, my loan balance is 14,499.22. 

  • I got a loan of 24,000 in 2012. I paid until December 2013 and paid more than 10,000. This December 4, 2014, I checked my online account and saw that my balance is still big -- 16,000.

  • I received my 24,000 loan in August 2009. I resigned and was not able to pay any amount. I checked my online account this January 2013, and was so saddened when I saw that my loan has ballooned to 36,000.

  • Me too. My loan was also 24,000, issued to me in 2009. This May 2013, it has shot up to 38,000.


  1. is it right to deduct my unpaid sss loan in full from my my lumpsum and the remaining will be my pension?

  2. My loan is 13,000 issued to me december2016 i didnt pay it because i need maternity leave because im pregnant i just wanna ask if my salary loan can be deducted to my maternity loan my due date is june2017 ???and my last contribute is decemeber2016 .so i am not pay already my sss loan start jan2017 until now..

    1. Hi Cherubine: Yes, SSS says the delinquent salary loan will be deducted from the maternity benefit. Hindi pa naman sobrang delinquent yong loan mo in June or July so malamang hindi pa nila ide-deduct. Pero hindi ko sure kung meron silang new rule na hindi ko pa nabasa. Or baka yong arrears mo lang by June or July ang ide-deduct.

    2. Ganun po ba bali 6months ko po hndi mahuhulugan yun salary loan ko kasi naka leave po ako s work hndi po ba matagal na un 6month?ilang months po ba pweding hndi hulugan yun salary loan?thank you po sa reply nga po pala nag check po ako ng status sa online sss at chineck ko po un about maternity nakalagay po dun eligibility ako sa maternity and nakalagay rin po dun un computation ko kun magkano makukuwa ko sa maternity pero wla po nkalagay dun na kakaltasan nila un loan ko dun..

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