President Ferdinand R. Marcos Jr., in his Labor Day message at the SMX Convention Center in Pasay City, announced major enhancements to the loan programs of the Social Security System (SSS). These reforms aim to recognize the contributions of hardworking Filipinos, both in the country and overseas.
Lower Interest Rates for Salary and Calamity Loans
SSS President and CEO Robert Joseph M. De Claro confirmed that the agency will implement reduced interest rates for salary and calamity loans, following approval from the Social Security Commission, led by Finance Secretary and SSS Chairperson Ralph G. Recto.
Salary loan interest rate: Reduced from 10% to 8%
Calamity loan interest rate: Reduced from 10% to 7%
These reduced rates will apply to members with no history of penalty condonation over the past five years—effectively those with good credit standing. This initiative aims to increase the net proceeds that borrowers receive.
Target implementation date: July 2025
Expanded Pension Loan Program for Surviving Spouse Pensioners
Since its launch in 2018, the Pension Loan Program (PLP) has benefited retiree pensioners. Building on its success, SSS will extend the program to surviving spouse pensioners, addressing a long-recognized need for financial support within this group.
Eligible group: 1.2 million surviving spouse pensioners (as of December 2024)
Maximum loanable amount: PHP 150,000
Credit Life Insurance: Included, ensuring the loan balance is fully settled in case of the borrower’s death before full repayment
Target implementation date: September 2025
Micro-Credit Loan Facility Under Development
To address members’ short-term cash needs, the SSS is currently in talks with partner financial institutions to develop a micro-credit loan facility. This facility would offer loans with short tenors, ranging from 15 to 90 days.
De Claro emphasized that while discussions are still ongoing, the agency is moving toward creating a framework for swift and secure implementation.
Broader Commitment to Service Innovation
“These program enhancements are our Labor Day offering to all Filipino workers here and abroad,” De Claro said. “We are committed to continuous service innovation and strengthening our social security protection.”
Looking ahead, SSS is exploring the rollout of livelihood loans for members, particularly those in the transport sector, as authorized under Republic Act 11199 (Social Security Act of 2018). This supports President Marcos Jr.’s whole-of-government approach to poverty reduction.
Strengthening Partnerships and Digitalization
SSS is also advancing several strategic initiatives:
- Digital transformation with the Department of Information and Communications Technology (DICT)
- Data synchronization and collaboration with PhilHealth
- Targeted outreach to key industries, including mining, construction, BPO, and the gig economy
Through these efforts, SSS reaffirms its commitment to improving access, reliability, and responsiveness of social security services for all Filipinos.
