Penalty condonation program for short-term member loans

Member-borrowers with past due short-term loans may apply for the Social Security System’s (SSS) Penalty Condonation Program via online using their My.SSS accounts starting Nov 15, 2021 up to Feb 14, 2022.

SSS President and Chief Executive Officer Aurora C. Ignacio said that the Short-term Member Loan Penalty Condonation Program (STMLPCP) is part of the Pandemic Relief and Restructuring Programs (PRRP 5) being offered by SSS.

“Our heart goes to our members who were greatly affected during this pandemic and yet they try their best to get back on their feet. SSS is always here to extend not only in a form of cash benefits and loan privileges but also conditional condonation which provides financial relief by waiving their accumulated penalties once their loan principal and interest are fully paid.” Ignacio said.

Included in the program are those with outstanding Salary, Calamity, Salary Loan Early Renewal Program (SLERP), Emergency Loans and Restructured Loan under the Loan Restructuring Program (LRP) implemented in 2016 to 2019.

Qualified applicants are as follows:

Members with short term member loans that are past due for at least six (6) months as of the first day of the condonation availment period;

Members who have not been granted any final benefit such as permanent total disability or retirement;

Members who have not been disqualified due to fraud committed against the SSS;

Members who will file their final benefits application for permanent total disability or retirement, whose contingency date is on or before the last day of the availment period of the condonation program; and

Heirs or beneficiaries of deceased member borrowers who will file the death benefit application, whose contingency date is on or before the last day of the availment period of the condonation program.

For member-borrowers who will pay their consolidated loan under instalment basis, their age must be under 65 years old at the end of the instalment term.

Under the STMLPCP, the total amount of the outstanding principal and interest of the member’s past due loans shall be consolidated and settled through the following arrangements:

One-time full payment, in a single payment transaction, within 30 calendar days from the receipt of notice of approval of the STML Penalty Condonation Application.

Installment term – member should pay the 50 percent of the consolidated loan in full, in a single payment transaction, within 30 calendar days from the receipt of the notice of approval of the STML Penalty Condonation Application. Meanwhile, the remaining 50 percent of the consolidated loan will become Restructured Loan 1 (RL1) and shall be paid in six equal monthly installments starting from the month following the end of the 30-calendar day period.

“Please do take note that no staggered/partial payment shall be allowed for the consolidated loan under one-time payment or 50% down payment under installment term even if the required payment is completed within the 30-day period,” Ignacio said.

For member-borrowers who are 65 years old or older who will choose not to file their final benefit claim within the availment period, they may only avail the one-time payment. Whereas, member-borrowers and heirs or beneficiaries of deceased members whose contingency date is on or before the last day of the availment period should file their benefit claim within the availment period of the penalty condonation program and shall only be allowed to avail of the one-time payment scheme through deduction from the benefit proceeds.

Applicants except the final benefit filers shall pay their consolidated loan using the SSS-issued Payment Reference Number (PRN) with the amount and due date for each required payment.

RL1 has an annual interest rate of three percent computed on a decreasing principal balance over the six-month payment term. Every unpaid/late payment shall be charged a one percent penalty per month.

Other terms and conditions under the loan penalty condonation can be viewed in SSS Circular 2021-014 which can be accessed through this link https://bit.ly/3GEzwhf.

For accurate information and updates on SSS programs and benefits, visit and follow SSS on Facebook and YouTube at “Philippine Social Security System,” Instagram at “mysssph,” Twitter at “PHLSSS,” join its Viber Community at “MYSSSPH Updates,” or visit the uSSSapTayo Portal at https://crms.sss.gov.ph/.