Payment of SSS Salary Loan After Resignation (Philippine Context)

Resigning from your job does not cancel your Social Security System (SSS) Salary Loan. You remain fully responsible for paying it until cleared. Below is a one-stop guide covering your rights, duties, options, and the practical “what to do next.”

Quick answers

Who pays after resignation? You do. Payroll deductions stop; you switch to self-payment or arrange deductions with your next employer.
Is the employer liable for my remaining loan? No, except for amounts they already deducted (which they must remit) and any due installment they should deduct from your final pay if applicable.
Will SSS penalize late payments? Yes. Unpaid installments continue to accrue interest and late payment penalties until fully settled.
Can SSS offset the loan from my benefits later? Yes. Any outstanding balance (plus interest/penalties) can be deducted from future SSS benefits, especially final benefits (e.g., retirement, total disability, death). Best practice: settle before you file for benefits.

Legal foundations (plain-English)

Social Security Act (as amended, currently R.A. 11199):
- Members are liable for loans they take.
- Employers must deduct authorized amortizations from wages and remit to SSS on time; failure to remit can trigger employer liability and penalties.
SSS Salary Loan rules (circulars and loan guidelines):
- Typical interest: 10% per annum on the outstanding principal (computed monthly on a diminishing balance).
- Service fee: commonly 1% of the loan amount (deducted upfront).
- Penalty for delayed amortizations: commonly 1% per month on overdue amounts.
- Term: usually 24 monthly installments, starting two months after loan release.

(Figures above reflect standard SSS salary-loan terms in recent years; check your promissory note or My.SSS account for your exact terms.)

What changes on resignation

1) Payroll deductions stop

Your former employer’s obligation to withhold future amortizations ends with your employment. However, they should:

Withhold any due installment(s) that coincide with your final pay (if timing aligns); and
Remit all amounts already deducted to SSS with the required collection list.

If your payslip shows a deduction but My.SSS doesn’t reflect it after a reasonable posting window, ask HR for proof of remittance. If they failed to remit, you can report it to SSS; the employer (not you) can be held liable for unremitted amounts and penalties. You should still keep your loan current to avoid your own penalties while SSS enforces against the employer.

2) You become a “self-paying” borrower

You must continue paying directly using Payment Reference Numbers (PRNs) under SSS’s Real-Time Processing of Loans (RTPL).

How to keep paying after resignation (step-by-step)

Check your running balance and schedule
- Log in to My.SSS or the SSS Mobile App → Loans → Loan Info / SOA.
- Note the next due date, installment amount, outstanding balance, and any overdues.
Generate a PRN (Loan PRN / RTPL)
- From Loans → Generate PRN. Each month has a specific PRN; use the correct one so your payment posts instantly to the right installment.
Choose a payment channel
- Over-the-counter: SSS partner banks, Bayad Centers, SM Business Centers, etc.
- E-wallets/online banking: channels that support SSS Loan PRN.
- Abroad/OFW: pay via accredited remittance partners that accept SSS loan PRNs (not just contributions).
Keep proof
- Save the e-receipt or validated stub. Check posting in My.SSS after payment. If it doesn’t post promptly, contact the payment channel with your PRN and receipt.
(Optional) Pay ahead or fully settle
- You may prepay future installments or pay in full (request a current Statement of Account first so you cover exact principal, interest to date, and any penalties).

If you move to a new employer

Tell HR you have an existing SSS Salary Loan and sign a new payroll-deduction authorization.
Confirm that your amortization amount and start date match your loan schedule.
Monitor postings in My.SSS to ensure the new employer is remitting under the correct PRN each month.

If you become unemployed or a voluntary member

You can still pay as a voluntary member; membership category doesn’t affect your obligation to settle the loan.
Consider budgeting tools or auto-payments through your bank/e-wallet using the monthly PRN to avoid penalties.

Charges you might see (typical)

Interest: ~10% p.a. on outstanding principal (computed monthly).
Penalty on late amortizations: ~1% per month on any overdue installment (separate from interest).
Service fee: ~1% of the loan amount (deducted when loan was released).

Exact amounts depend on your approved loan and SSS rules in force on your release date. Always refer to your Loan Disclosure/Promissory Note and My.SSS figures.

What if you stop paying?

Your account goes delinquent. Unpaid dues continue to accrue interest and penalties.
SSS can offset the outstanding balance (plus charges) against benefits payable, especially retirement, total disability, or death benefits. This reduces the benefit you or your beneficiaries will receive.
SSS may also report delinquency and pursue collection remedies allowed by law.

In past years, SSS has occasionally opened Loan Restructuring or Penalty Condonation programs (e.g., for calamities). These are time-bound and not permanent. If a new window opens, it’s a chance to reduce penalties and get back on track.

Employer’s duties at separation (why this matters to you)

Remit any loan amounts already deducted from your pay, including the installment due that they withheld from your final pay (if timing aligned).
Report correct employee separation/updates in their SSS employment records.
Liability: If an employer deducted but did not remit, SSS can hold the employer liable, with penalties. Keep your payslips and ask for proof of remittance if something looks off in My.SSS.

Practical scenarios & what to do

A) My last day was before the due date; no deduction on final pay

Start self-payment immediately. Generate the PRN for that month and pay through any RTPL channel on or before the due date.

B) HR deducted the installment from my final pay, but it’s not in My.SSS

Ask HR for the SSS payment receipt/collection list where your PRN appears.
If unresolved, file a report with SSS (bring payslips, COE/separation papers, and any HR emails).

C) I’m between jobs and missed two months

Generate PRNs for the overdue months and pay them; expect penalties to be included.
Consider paying in advance for the next month to break the late-payment cycle.

D) I can’t afford the full installment this month

SSS expects full installment amounts (PRN is per installment). Partial payments may not stop penalties. If hardship is ongoing, watch for official restructuring/condonation announcements and, in the meantime, budget to catch up ASAP.

E) I’m applying for retirement/disability with an unpaid loan

SSS will offset the outstanding balance (plus charges) from your benefit proceeds. If feasible, settle first to maximize your benefit.

Documentation you should keep

Promissory Note/Loan Disclosure (from loan release)
Payslips showing loan deductions
HR certification (if they remitted a deduction from your final pay)
PRNs and receipts for all post-resignation payments
My.SSS screenshots (before/after payment posting)

Frequently asked questions

Does resignation accelerate my loan? No. Your installment schedule stays the same—unless you fully prepay or enter a restructuring if one is officially offered.

Can my employer require me to “pay off everything” before clearance? They can require clearance for company-related obligations, but they cannot force you to settle the entire SSS loan with them. They should only deduct the installment(s) already due from final pay (with your prior authorization on the original payroll-deduction form); the rest you pay directly to SSS.

Will non-payment affect my ability to get another SSS loan? Yes. Delinquent borrowers generally cannot take new short-term SSS loans until the old one is updated/settled.

Can SSS go after my new employer for my old loan? No. Your new employer’s duty begins only after you authorize payroll deductions with them and they start withholding/remitting your current installments.

Best practices before and after you resign

Before last day:
- Check your loan balance & upcoming due dates in My.SSS.
- Confirm with HR whether a due installment will be deducted from your final pay; ask for remittance timing.
After last day:
- Generate PRN monthly (or request an SOA if you’ll settle).
- Pay on or before each due date through an RTPL channel.
- Monitor postings in My.SSS; keep all receipts.

Bottom line

Your SSS Salary Loan follows you, not your employer. After resignation, shift to PRN-based self-payment (or set up payroll deduction with your next employer), keep an eye on interest and penalties, and preserve documentation. Staying current protects you from unnecessary charges and preserves your future SSS benefits.