SSS Cuts Loan Rates, Expands Benefits to Spouse Pensioners

The Social Security System (SSS) announced on Labor Day 2025 major enhancements to its loan programs, including lower interest rates for salary and calamity loans, an expanded pension loan program for surviving spouse pensioners, and the rollout of a micro-credit facility for short-term cash needs.

In his Labor Day address at the SMX Convention Center in Pasay City, President Ferdinand R. Marcos Jr. recognized the resilience of Filipino workers and endorsed the SSS improvements as part of broader pro-labor reforms.

SSS President and CEO Robert Joseph M. De Claro said the Social Security Commission, chaired by Finance Secretary Ralph G. Recto, approved a reduction in interest rates for salary and calamity loans.

The salary loan rate will drop from 10% to 8%, while the calamity loan interest rate will decrease to 7%.

These reduced rates will apply to SSS members with good credit standing — those without a penalty condonation in the past five years — and are expected to boost loan proceeds for qualified borrowers.

The lower interest rates are targeted for implementation by July 2025.

De Claro also announced the expansion of the Pension Loan Program (PLP) to include surviving spouse pensioners, acknowledging the financial needs of the estimated 1.2 million eligible beneficiaries as of December 2024.

“We acknowledge the need of other pensioners for access to a dependable loan facility, so we are expanding the PLP to surviving spouse pensioners,” he said.

Under the new program, spouse pensioners may borrow up to PHP 150,000, with Credit Life Insurance coverage to ensure that the outstanding loan is fully settled in case of the borrower’s death during the loan term.

The pension loan expansion is scheduled for launch in September 2025.

Additionally, the SSS is in talks with financial institutions to introduce a micro-credit loan facility that would cater to members needing short-term credit with repayment terms ranging from 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,” De Claro said. “When we see a framework for this micro-credit program, we will implement it as soon as possible.”

He also confirmed that SSS is evaluating livelihood loan offerings for sectors such as transport, in line with the Social Security Act of 2018 and the administration’s poverty alleviation efforts.

“These enhancements are our Labor Day offering to all Filipino workers, here and abroad,” De Claro said. “We remain committed to service excellence through innovation.”

SSS is also pursuing digitalization efforts with the Department of Information and Communications Technology and exploring data sharing agreements with PhilHealth to improve inter-agency coordination.

Stakeholder engagement campaigns are underway across sectors such as mining, construction, BPO, and the gig economy to strengthen social security coverage and accessibility.