SSS Loan

SSS Loan

Ref. No.: CPP-HR-0306_SSS Loan_V2.doc 
Prepared
P. Gregorio
05/18/2017
Approved
Execom
05/19/2017

1.0 Objective 
To provide the guidelines on availing salary loan through SSS that is intended to meet short term credit needs. 

2.0 Scope 
This policy shall apply to all team members who are applying for a salary loan through SSS. 

3.0 Provisions 
3.1 Eligibility 
3.1.1 An employed, currently paying self-employed or voluntary member (SE/VM) who has 6 posted monthly contributions for the last 12 months prior to the month of filing of application. 
3.1.2 For one-month loan, the member-borrower must have 36 posted monthly contributions prior to the month of filing of application. 
3.1.3 For a two-month loan, the member-borrower must have 72 posted monthly contributions prior to the month of filing of application. 
3.1.4 If the member-borrower is employed, the employer must be updated in contributions and loan remittances. 
3.1.5 The member-borrower must be updated-current in the payment of other member loans, which include educational, stock investment, MADE & housing loans granted under the Unified Housing Loan program (UHLP) or direct from SSS. 
3.1.6 The member-borrower has not been granted final benefit (total permanent disability, retirement and death). 
3.1.7 The member-borrower has not been disqualified due to fraud committed against the SSS.
3.2 Entitlement 
3.2.1 A one-month salary loan is equivalent to the average of the member’s latest 12 monthly credits posted. 
3.2.2 A two-month salary loan is equivalent to twice the average of the member’s latest 12 monthly salary credits posted (rounded to the next higher monthly salary credit), but not to exceed P24,000
3.3 Requirements 
3.3.1.0 An employed member shall log on to SSS website and follow below procedures in applying SSS loan: 
3.3.1.1 After signing in, select the E-Services button on the menu bar then click Apply for Salary Loan. 
3.3.1.2 Once directed to the SSS online application form, fill out the necessary information in order to complete the request. Click I agree to the terms and conditions tick box then click Proceed. 
3.3.1.3 A confirmation message will appear to confirm the submission of the request. Click OK button to continue.
3.3.1.4 Once done submitting the SSS Salary Loan request, an e-mail confirmation from SSS regarding the Salary Loan Application will be sent together with a transaction number for reference. 
3.3.1.5 HR ER will be responsible for approving the employed member’s Salary Loan Online Application via SSS Website employer’s account. 
3.3.1.6 The employed member should wait for at least 3 days to check the status of SSS Salary Loan application. 
3.3.1.7 To check the SSS Salary Loan Application online status, just log on to SSS account. 
3.3.1.8 Go to E-Services tab, click inquiry then select Loans – Loans Status. If the status shows “Check Generated” that means that the Salary Loan is already on process and soon will be delivered to the office address. NOTE: The employer shall submit annually an updated SSS Form L-501 (Specimen Signature Card) to avoid delay in the processing of salary loan applications.
3.4 Availment 
3.4.1 The one-month or two-month salary loan shall be payable within two (2) years in 24 equal monthly installments. 
3.4.2 The loan shall be charged a nominal interest of 10% per annum. First year’s interest shall be deducted in advance from the proceeds of the loan. Second year’s interest shall be included in the monthly amortizations. 
3.4.3 Loan amortization not remitted on due date shall bear a penalty of 1% per month. 
3.4.4 A service fee of 1% of the loan amount shall be charged and deducted from the proceeds of the loan. 
3.4.5 The loan may be renewed after the prescribed amortization period of two (2) years. Balance of P500 or less shall be deducted from the proceeds of the new loan. 
3.4.6 A member-borrower who transfers employment shall submit to his new employer an updated statement of account of any outstanding loan balance with SSS and allow his employer to deduct from his salary the corresponding amortization due, including any interest or penalty for late remittance.
3.5 Payment and Remittance 
3.5.1 For employed member-borrower (including participants of the fast track program), the first deduction from their salaries shall start on the second month following the date of loan. All remittances shall be made on or before the 10th day following the applicable month of deduction to the SSS or to any of its authorized banks. 
3.5.2 The employee is obliged to report to the new employer his obligations with SSS and shall allow the new employer to deduct from his salary the corresponding amortizations due, plus any penalty for late remittance of amortizations. 
3.5.3 The employer shall be responsible for the collection and remittance to the SSS of the amortization(s) due on the member-borrower’s salary loan through payroll deduction. Version 2 
3.5.4 In case a member-borrower is separated voluntarily, (e.g. retirement or resignation) or involuntarily, (e.g. termination of employment or cessation of operations of the company), the employer shall be required to deduct the total balance of the loan from any benefit(s) due to the employee and shall remit the same in full to SSS. 
3.5.5 If the benefit(s) due the employee or the amount thereof legally available for offset of obligations of the employee is insufficient to fully repay the loan, the employer shall report the unpaid loan balance to SSS. 
3.5.6 In case of member’s death, total disability or retirement under the Social Security Act, the entire amount or any unpaid amount of the loan as well as the interest and penalty thereon, If any, shall be deducted from the corresponding benefit.

4.0 Responsibility 
4.1 New team member is responsible for submitting to Infinit-O an updated statement of account of any outstanding loan balance with SSS and allow Infinit-O to deduct from his salary the corresponding amortization due, including any interest or penalty for late remittance. 
4.2 F&A Team shall be responsible for the collection and remittance to the SSS of the amortization due on the member-borrower's salary loan through payroll deduction. 
4.3 
4.4 HR_ER shall require new employees to secure from the SSS an updated statement of account. 
4.5 F&A Team shall deduct and remit to SSS any outstanding loan balance of new employees.

5.0 Frequency 
5.1 Advisory of current SSS Loan – upon employment 
5.2 Salary Deduction of Salary Loan – monthly 
5.3 Collection and Remittance of SSS amortization – monthly 

6.0 Distribution 
Team Member 
HR-ER Team 
F&A Team 

7.0 Usage 
7.1 New hire submits updated statement of account of any outstanding loan balance with SSS. 
7.2 F&A Team implements monthly salary deduction of the SSS loan. 
7.3 F&A Team remits monthly amortization to SSS. 
7.4 In case of separation, F&A Team deducts the total balance of the SSS Loan. If the final pay is insufficient to deduct the total loan amount balance, the remaining loan balance must be reported to SSS. 
7.5 If no deduction is made because the final pay is zero, the separating team member must secure a certification from one’s new employer that the deduction will be continued and HR-ER must have this document notarized and send a copy to SSS.
8.0 References 
https://www.sss.gov.ph/sss/index2.jsp?secid=4065&cat=3&pg=null 9.0 
Records 
Pay Slip 
SSS Remittance Report
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