In the Philippines, the Social Security System (SS) Salary Loan is a privileged credit facility intended to provide immediate financial assistance to member-borrowers. Governing these transactions are the policies set forth by the Social Security Commission (SSC) pursuant to Republic Act No. 11199, otherwise known as the Social Security Act of 2018.

Below is a comprehensive guide regarding the timelines, procedural requirements, and disbursement protocols for SSS Salary Loans.

I. Prerequisites for Processing

Before a loan enters the processing stage, the member must meet specific eligibility criteria. Failure to meet these results in immediate system rejection:

Contribution Requirement: For a one-month salary loan, the member must have thirty-six (36) posted monthly contributions, six (6) of which must be within the last twelve (12) months prior to the month of filing. For a two-month loan, seventy-two (72) posted contributions are required.
Employer Verification: For employed members, the employer must be updated in their contribution payments and must have a registered SSS Web Account to certify the loan application.
Active Status: The member must not have been granted final benefits (e.g., total permanent disability, retirement, or death benefits).

II. The Digital Mandate: Application Process

As of 2020, the SSS has shifted to mandatory online filing. Manual submissions are no longer the standard for salary loans.

Submission: The member submits the application via the My.SSS Member Portal or the SSS Mobile App.
Employer Certification: For employed members, the application remains "Pending" until the employer certifies the loan through their own SSS Web Account. The employer has a window of three (3) working days to act on the notification.

Note: If the employer fails to certify within the prescribed period, the application expires, and the member must re-file.

Self-Employed/Voluntary Members: These members do not require third-party certification; their applications proceed directly to SSS processing upon submission.

III. Processing Timelines

Once an application is "Certified" by the employer or submitted by a voluntary member, it enters the SSS backend system.

Approval Window: Generally, the SSS processes and approves the loan within three (3) to five (5) working days, provided there are no inconsistencies in the member's records.
Notification: Members receive an SMS or email notification once the loan status changes from "Pending" to "Approved" or "Generated."

IV. Disbursement Guidelines

The SSS has phased out the issuance of physical checks for salary loans. Disbursement is now strictly electronic to ensure security and speed.

1. Disbursement Channels

Funds are released through the Disbursement Account Enrollment Module (DAEM). Members must ensure they have enrolled one of the following in their My.SSS account:

PESONet-participating Banks: A personal savings account where the name matches the SSS records.
e-Wallets: Such as GCash or Maya.
Remittance Center Partners: (e.g., M Lhuillier).
UnionBank Quick Card: A specific SSS-branded card.

2. Disbursement Timeline

Standard Period: After the loan is tagged as "Approved," the funds are typically credited to the chosen account within one (1) to three (3) working days.
Wait Times: For PESONet transfers, the timing may depend on the receiving bank’s internal processing hours.

V. Loan Amount and Deductions

The amount disbursed is not the gross loan amount. The SSS applies specific legal deductions:

Item	Description
Service Fee	A 1% service fee is deducted from the loan proceeds.
Outstanding Balance	If the loan is a renewal, the remaining balance of the previous loan is deducted.
Advance Interest	Pro-rated interest from the date of disbursement to the first installment due date.

VI. Member Responsibilities Post-Disbursement

The legal obligation to ensure repayment begins the moment the funds are credited.

Payment Term: The loan is payable within twenty-four (24) months (2 years) in equal monthly installments.
Interest Rate: Currently fixed at 10% per annum based on the diminishing principal balance.
Penalty for Delinquency: A penalty of 1% per month is charged on any unpaid amortizations.
Employer Deduction: For employed members, the employer is legally mandated to deduct the monthly amortizations from the employee's salary and remit them to the SSS. Failure to do so renders the employer liable under the Social Security Act.