The Social Security System (SSS) said is enhancing its loan programs for Filipino workers as the country observes Labor Day on May 1, 2025.
It said the enhancements include reducing interest rates for salary and calamity loans; expanding the pension loan program to include surviving spouse pensioners; and implementing a micro-credit loan facility through third-party providers.
“As announced early this year, we proposed and obtained approval of the Social Security Commission, headed by our chairperson Finance Secretary Ralph Recto, to reduce interest rates for salary loans and calamity loans. From the current interest rate of 10 percent, salary loan interest rate shall be reduced to 8 percentwhile calamity loan interest rate shall be reduced to 7 percent,” SSS president and chief executive Robert Joseph De Claro said.
The reduced interest rate will be for members who have no availment of penalty condonation in the past five years and will increase cash proceeds from loan applications. Target implementation of the reduced interest rates for these loan programs is July 2025.
It said that with the successful implementation of the Pension Loan Program (PLP) for retiree pensioners since 2018, the fund is looking to expand the program for surviving spouse pensioners. As of December 2024, there were 1.2 million surviving spouse pensioners.
“We acknowledge the need of other pensioners for access to a dependable loan facility, so we are expanding the PLP to surviving spouse pensioners,” De Claro said.
The maximum loanable amount will be P150,000.
The PLP for surviving spouse pensioners will also be covered by credit life insurance, with insurance premium to be deducted from the proceeds of the pension loan so that in the event of death of the PL borrower before full payment and end of the loan term, the PL balance would be fully paid.
Target implementation of the expanded pension loan program, to include surviving spouse pensioners, is September 2025, according to the SSS.
The SSS said it also started discussions with partner financial institutions on the feasibility of implementing a micro-credit loan facility for members with tenor between 15 to 90 days.
“Currently, we are bringing the idea of a micro credit loan facility among our partner financial institutions through meetings and brainstorming sessions and see if we can address such short-term cash needs of our members. When we see a framework for this micro-credit program, we will implement as soon as possible,” De Claro said.
