The Social Security System (SSS) said it 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 form part of the government’s move to help promote the welfare of Filipino workers, was announced in his Labor Day message by President Ferdinand R. Marcos Jr. at the SMX Convention Center in Pasay City.
In a separate statement, SSS said the reduced interest rate will 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 will be reduced to 75,” SSS President and Chief Executive Officer Robert Joseph de Claro said.
He said SSS is also looking at expanding the Pension Loan Program to include surviving spouse pensioners. SSS data show 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.
“Currently, we are bringing the idea of a micro credit loan facility among our partner financial institutions, and see if we can address such short-term cash needs of our members. When we see a framework for this micro-credit program, we will implement it as soon as possible,” de Claro said.
“We offer these enhancements to all Filipino workers, here and overseas, for Labor Day – Araw ng mga Manggagawa. We remain committed to our push for service excellence with program enhancements and innovations,” he added.
De Claro said SSS is also looking at ways on how to help members through livelihood loans as part of the Marcos administration’s bid to reduce poverty.
He said they are also in talks with the Department of Information and Communications Technology on digitalization programs, with PhilHealth for better collaboration through data synchronization, and with several industries for targeted stakeholder engagements.(With PNA)