Pasay City: The state-run Social Security System (SSS) announced its decision to reduce interest rates for salary and calamity loans, expand the pension loan program to include surviving spouse pensioners, and implement a micro-credit loan facility through third-party providers. These enhancements are part of a broader initiative to recognize the contributions of Filipino workers, as highlighted by President Ferdinand R. Marcos Jr. during his Labor Day message at the SMX Convention Center.
According to Philippines News Agency, SSS’s move to reduce interest rates will benefit members with good credit quality who have not availed of penalty condonation in the past five years. The target implementation for these reduced interest rates is July 2025. SSS President and CEO Robert Joseph de Claro stated that the salary loan interest rate will be reduced from the current 10 percent to 8 percent, while the calamity loan interest rate will drop to 7 percent.
In addition, the SSS is set to expand its Pension Loan Program (PLP) to include surviving spouse pensioners. As of December 2024, there are approximately 1.2 million surviving spouse pensioners who could benefit from this expansion, with a target implementation date of September this year. The maximum loanable amount for these pensioners will be PHP150,000, covered by Credit Life Insurance to ensure the loan balance is fully paid in the event of the borrower’s death.
The SSS is also in discussions with partner financial institutions regarding a potential micro-credit loan facility for members, offering a tenor between 15 to 90 days. This initiative aims to address short-term cash needs and, once a framework is established, will be implemented promptly.
De Claro emphasized that these enhancements are offered to all Filipino workers, both domestically and overseas, as part of the Labor Day celebrations. The SSS is committed to improving service excellence through program enhancements and innovations, aligning with the Marcos administration’s goal of reducing poverty through initiatives like livelihood loans.
Furthermore, the SSS is exploring collaborations with the Department of Information and Communications Technology on digitalization programs, PhilHealth for data synchronization, and various industries for targeted stakeholder engagements.
