SSS lowers interest rates, expands pension coverage

The Social Security System (SSS) rolled out big news Friday, unveiling a series of improvements to its loan programs — including lower interest rates, expanded coverage for pension loans and plans for a new micro-credit facility.

According to SSS, these upgrades aim to recognize the hard work of Filipinos both here and abroad, in line with President Ferdinand R. Marcos Jr.’s Labor Day message at the SMX Convention Center in Pasay City.

SSS president and CEO Robert Joseph M. de Claro shared that the agency got the green light from the Social Security Commission, chaired by Finance Secretary Ralph G. Recto, to cut interest rates on salary and calamity loans.

“Our salary loan interest rate will drop from 10 percent to 8 percent, and calamity loans from 10 percent to 7 percent,” De Claro announced.

The catch? The lower rates apply to members with good credit standing — specifically, those who haven’t availed of penalty condonation in the past five years. The aim is to reward reliable members and ensure they get more from their loans. The SSS is targeting to roll out these reduced rates by July 2025.

Pension loans now for surviving spouses

Since launching the Pension Loan Program in 2018, SSS has helped many retiree pensioners. Now, it’s extending that support to surviving spouse pensioners — benefiting around 1.2 million people as of December 2024.

“We know how important access to dependable loans is, especially for surviving spouses,” De Claro said. Qualified pensioners can borrow up to P150,000, with credit life insurance included to cover the loan in case of the borrower’s death.

This expansion is expected to take effect by September 2025.

Micro-credit loans in the works

SSS is also working on something new: A micro-credit loan facility in partnership with financial institutions. This would cater to members needing short-term loans — from 15 to 90 days.

“We’re still brainstorming with our partner institutions to iron out the details,” De Claro explained. “But once we have a solid framework, we’ll launch it as soon as possible.”

“These improvements are our Labor Day gift to hardworking Filipinos,” De Claro said. “We’re committed to continuously enhancing our services and programs.”