Skip to main content

Resigning? SSS Will Deduct Your Loan Balance from Your Last Pay

The purpose of this article is to inform the public about this policy of the Social Security System (SSS), the government-owned insurance company for those employed in the private sector.

I just learned about this a few months ago when my company announced a workforce reduction program. Among the sad discussions is about this policy of SSS regarding loans in cases of resignation or retrenchment. Section G-2 of the SSS Loan Terms and Conditions (at the back of the loan application form) explicitly says the following:
"The employer shall deduct the total balance of the loan from any benefit/s due to the employee and shall remit the same in full to SSS, in case the member-borrower is separated voluntarily (e.g., retirement or resignation) or involuntarily (e.g., termination of employment or cessation of operations of the company)."



In other words, you will be required to pay the rest of your loan (including the interest) when you change employer or employment status. If your last pay and benefits won't suffice, your next employer will require you to pay the rest. I'm taking about up to ~33,000 Pesos plus 10% interest per year. That can be huge amount for those trying to make the ends meet.

So there you go, if you're thinking of resigning or if you think you will lose your job anytime soon, consider the policy above and see if it will be better to postpone the loan.


Did you find this article helpful? If so, please hit the share button and let your friends know.

Comments

  1. This comment has been removed by the author.

    ReplyDelete
  2. Thank you for giving such clarification! By the way, here is a helpful post about the courtesy of resigning from your work: https://ndvlaw.com/how-to-resign-properly-in-the-philippines/.

    ReplyDelete
  3. Saved as a favorite, I really like your web site! I love what you guys tend to be up too. This type of clever work and reporting! Keep up the very good works guys I’ve incorporated you guys to blogroll. friv game 2019
    io jogos for kids
    2player games

    ReplyDelete
  4. Great info! I recently came across your blog and have been reading along. I thought I would leave my first comment. I don’t know what to say except that I have
    friv jogos online
    jogos online 2019
    friv jogos 4 school online

    ReplyDelete
  5. Hi just want to check if someone can answer this question. If your loan has already been approved for a week already and the status is on check generated but then due to the stressful work he is having right now he suddenly decide to resign. Will the employer hold the loan?

    ReplyDelete
    Replies
    1. I hope someone can answer this question

      Delete
    2. It is likely so or it will be deducted to your last pay if you suddenly resign after receiving the check.

      Delete
  6. Mgndang araw po. Tanong q lng po kapg ang employee po ba ay magreresign and may mga loan siya sa SSS at PAGIBIG. Responsible po ba nya na i-gather ang statement of loan status nya sa mga agency na un then submit kay employer? Sabi po kc ng employer ay that is the only time they will compute his/her separation pay. C employer po kc ay inutusan c employee na kunin ang loan status nya at isubmit sa kanila bago cla kumilos. Tama po ba un na c employee na about to resign ang magaasikaso?

    Kindly advice and enligthen me regarding this po. Thank you po in advance.

    ReplyDelete
  7. Nevertheless the people be strong that dwell in the land, and the cities are walled, and very great: and moreover we saw the children of Anak there. The Amalekites dwell in the land of the south: and the Hittites, and the Jebusites, and the Amorites, dwell in the mountains: and the Canaanites dwell by the sea, and by the coast of Jordan. And Caleb stilled the people before Moses, and said, Let us go up at once, and possess it; for we are well able to overcome it. Abc ya free games || y8 games online ||friv free games

    ReplyDelete
  8. CEPLİ DOSYA
    Cepli dosyalar firmaların müşterilerine öneri verirken ya da bizzat kendilerini anlatırken önce tanışmada verdikleri, içerisinde öneri durumda olan antetli kağıtların ve şirket ile ilgili CD’lerin, verilerin olduğu dosyalara sunum dosyası ya da cepli dosya diyoruz. İç kapakta CD, kartvizit ilave eden, içerisine konulan evrakları, cepli dosya baskı ve kağıtları düşürmeyecek bir gsm yer almaktadır. Genel olarak kalın kağıtlardan ve evrak çantalarına sığacak boyutlarda basılmaktadır. Genelde sunum dosyalarında, cepli dosyalarda ön yüzlere stress istenilmektedir. Cepli Dosya ancak dosya içerisine ayrıyeten stress istenilirse fiyatları belli bir süre artmaktadır. Cepli Dosya www.ceplidosya.com.tr

    ReplyDelete

Post a Comment

Popular posts from this blog

4 Steps to Replace Stolen or Lost Passbook

My passbook (inside my bag) was recently stolen inside a local grocery store, and I would like to share the steps I took to secure my account and get a new passbook.      By User:Aerous ", CC BY-SA 3.0 , Link The steps outlined here are for a BPI savings account, but generally, the procedure will be very similar to other banks in the Philippines. 1. Call the Bank to Secure Your Account The first and most crucial step you need to do immediately is to contact your bank by phone or personally report it to the branch where you opened the account. This action will ensure that funds will stay put. The bank will lock the account immediately. The big banks have 24/7 hotlines. For BPI, it's 889-100. You have to do this step ASAP after discovering the loss. 2. Go to the Branch to Ask for a Replacement of the Passbook It can mean a simple replacement of the lost passbook, but it can also mean closing the entire account and opening a new one for security purposes. 3. Get an Affidav

How Much Does a MRI Scan Costs in the Philippines?

My dad needs a Magnetic Resonance Imaging (MRI) scan for his prostate problem. I did a little research on how much does it cost to have one. Well, it depends on many factors, such as which body part is to be scanned. There's also this technique called "MRI with contrast," wherein the patient will be injected with a chemical to make the scan clearer. For your information, this technique of adding contrast is known as  Gadolinium Contrast Medium . It adds cost to the procedure, but with more clarity, the more you can trust the diagnosis. MRI Machine KasugaHuang , CC BY-SA 3.0 , Link So, in my father's case, we had a  Prostate MRI,  and I assume it was without contrast since he was never injected with the "contrast" chemicals. We got it in  i-Scan Healthcare Inc.  here in Quezon City. The cost is  13000 Pesos . Please take note that the amount was just for the scan, and a separate professional will read the result. Some laboratories offer this service (i.e