State-run Social Security System (SSS) will reduce interest rates for salary and calamity loans, expand the pension loan to include surviving spouse pensioners programs, and implement a micro-credit loan facility through third-party providers.
The enhanced benefits of members, which are part of the government's move to recognize Filipino workers, was announced by President Ferdinand R. Marcos Jr. in his Labor Day message at the SMX Convention Center in Pasay City on Thursday.
In a separate statement, SSS said the reduced interest rate shall be for members who have no availment of penalty condonation in the five years or those who have good credit quality.
The target implementation of the reduced interest rates for these loan programs is July 2025.
“As announced early this year, we proposed and obtained approval of the Social Security Commission, headed by our Chairperson Finance Secretary Ralph G. 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 percent while calamity loan interest rate shall be reduced to 7 percent,” SSS President and Chief Executive Officer Robert Joseph de Claro said.
SSS is also looking at expanding the Pension Loan Program to include surviving spouse pensioners.
Data from the agency showed that as of December 2024, there are 1.2 million surviving spouse pensioners who could benefit from the expanded Pension Loan Program which is targeted to be implemented by September this year.
“We acknowledge the need of other pensioners for access to a dependable loan facility, so we are expanding the PLP to surviving spouse pensioners. The maximum loanable amount shall be P150,000," de Claro said.
The PLP for surviving spouse pensioners shall also be covered by Credit Life Insurance, with the insurance premium to be deducted from the proceeds of the Pension Loan (PL).
SSS said this will ensure that in the event of the death of the PL borrower before full payment and end of the loan term, the PL balance shall be fully paid.
The SSS has also begun discussions with partner financial institutions on the feasibility of implementing a micro-credit loan facility for members with a tenor between 15 to 90 days.
SSS PHOTO
