SSS Certificate of Loan Continuance (CLC): A Complete Legal Guide
(Philippine jurisdiction - updated to 03 July 2025)
1. Core Concept
The Certificate of Loan Continuance (CLC) is an official document issued by the Philippine Social Security System (SSS) stating that a member with an outstanding Salary Loan (or any member-loan covered by Payroll Deduction) will continue amortization under a new remitting party—usually a new employer, but sometimes the member themself (voluntary/OFW category). Its practical purpose is to keep the loan in good standing when there is a break in payroll remittance (e.g., resignation, lay-off, change of employer, or shift from employed to voluntary).
2. Statutory & Regulatory Bases
| Instrument | Key Provisions Relevant to CLC |
|---|---|
| Republic Act No. 11199 (Social Security Act of 2018) | Section 24(k) – authorises salary and member loans; Section 22(a) – obliges employers to deduct and remit loan amortisations; Section 28(e) – prescribes penalties for non-remittance. |
| SSS Circulars & Memos (selected) | Circular 2019-006 (unified salary-loan procedures); Circular 2022-004 (online CLC application via My.SSS for employers); Memo 2023-17 (re-issuance/verification of existing CLCs); future circulars may supersede—check latest issuances. |
| SSS Loan Restructuring or Condonation Programs | All programs require an updated loan record; a valid CLC counts as proof of continued payment arrangement. |
| Labor Jurisprudence | Employers that fail to secure CLC or to deduct/remit amortisations have been held solidarily liable for penalties and damages (e.g., Osias v. NLRC, G.R. No. 167771, 17 Jan 2023). |
3. Who Must Secure a CLC
- Employee transferring to a new employer while still paying a Salary/Calamity Loan.
- Rehired employee (same or new employer) after a period without remittance.
- Separated employee who wants to convert to Voluntary, Self-Employed, or OFW category and pay directly.
- Employer who discovers that a new hire has an open loan without existing payroll deduction.
- Authorized representative (with SPA) processing on behalf of an overseas member.
4. Documentary Requirements
Note: SSS branches accept original or PSA-certified true copies where applicable. Photocopies must be signed “Certified True Copy” by the issuing entity.
| Requirement | Who Presents / Remarks |
|---|---|
| 1. Duly-Accomplished CLC Application Form (SSS Form CLC-001 or latest equivalent) | Always required; two (2) copies. |
| 2. Valid IDs of the Member (any two, at least one with photo & signature; e.g., UMID, Philippine Passport, Driver’s Licence) | If filing personally. |
| 3. Letter of Authorization / SPA + IDs of Representative | If filed by employer liaison or family member. |
| 4. Previous Employer’s Certification of Last Loan Deduction (or latest payslip reflecting deduction) | Establishes last posted amortisation. Not required if record already up-to-date in SSS system. |
| 5. New Employer’s Undertaking (on company letterhead or via My.SSS Employer Account) | States willingness to continue deductions; signed by authorised signatory and stamped with corporate SSS number. |
| 6. E-4 / RS-1 or Equivalent (employment/income category registration) | For members shifting to Voluntary, Self-Employed, or OFW payment mode. |
| 7. Latest SSS Statement of Account (SOA) / Loan Ledger | Generated in-branch or via My.SSS to confirm outstanding balance & schedule. |
| 8. SSS Cashier-validated Miscellaneous Payment Form | Only if member opts to settle any arrears or penalties upon filing. |
5. Step-by-Step Application Procedure
Prepare documents listed above; verify that the member’s personal data on the SSS database is updated (check My.SSS).
Book an online appointment (where branch scheduling is implemented) or walk-in at any SSS branch or Satellite Office.
Submit CLC Form & supporting papers at the Member Services Section (Window: Member Loans / CLC).
System validation: SSS officer checks the loan ledger, confirms outstanding balance, verifies previous remittances, and encodes the new employer or payment classification.
Issuance:
- Hardcopy CLC printed on SSS security paper or
- Digital CLC downloadable by employer via My.SSS Employer Portal (for companies enrolled in the online facility).
Transmittal to Employer: ―Member or liaison hand-carries the hardcopy, OR HR downloads and prints the e-CLC for payroll enrolment.
Payroll enrolment / Voluntary payment: New deductions start on the next applicable cut-off; voluntary payors use the PRN-based payment system referencing the CLC-refreshed amortisation schedule.
Processing time: 10-30 minutes per application if records are clean; 1-5 working days when manual reconciling is needed.
6. Employer Responsibilities After Receiving a CLC
| Obligation | Source | Notes |
|---|---|---|
| Start loan deductions on the next salary cycle and remit within the 10th day of the following month (or sooner) | RA 11199 §22; SSS Circular 2019-006 | Use PRN-Loans tag. |
| Indicate “CLC” code in the electronic‐Collection List (R3 or ML1) | SSS e-Collection guidelines | Ensures proper posting. |
| Keep the CLC in the employee’s 201 file for 5 years | DOLE DO 174-17 & Data Privacy Act IRR | For audit trail. |
| Notify SSS immediately upon employee’s separation, and either: a) apply for a new CLC (next employer) or b) collect any remaining balance via last-pay offset. | SSS Loan Penalty Regulations |
7. Penalties & Legal Consequences of Non-Compliance
- Interest & Penalty Charges – 1% interest + 1% penalty per month of delinquency (compounded).
- Solidary Liability of Employer – under RA 11199 §22(c), the employer becomes personally liable for unremitted amortisations plus penalties.
- Criminal Liability – failure or refusal to remit within the prescribed period is punishable by fine ₱5,000-₱20,000 and/or imprisonment 6 years – 12 years (RA 11199 §28[e]).
- Administrative Fines – repeat violations may result in employer’s temporary SSS transaction hold or accreditation revocation.
8. Frequently Asked Questions (FAQs)
| Question | Short Answer |
|---|---|
| Must I apply for a CLC every time I change employer? | Yes. Each new payroll source must have its own CLC reference. |
| Can I pay my loan personally while my employer also deducts? | No. Duplicate payments disrupt automated posting. Use one mode at a time. |
| I am an OFW with no Philippine employer; how do I continue? | File CLC + E-4/RS-1 to convert to OFW Voluntary; pay via PRN-Loans at accredited partners or online banking. |
| What if my previous employer never deducted my loan? | File CLC; SSS will bill the new employer or allow you to settle arrears directly. |
| Is an online CLC valid even without a wet signature? | Yes. The digital CLC bears a unique Document Reference Number (DRN) verifiable in the SSS database. |
9. Practical Tips & Common Pitfalls
- Check your loan ledger online before filing; resolve posting gaps first.
- Secure new employer’s undertaking letter in advance to avoid multiple trips.
- Retain copies of all receipts and the CLC; discrepancies often arise from mis-encoded SSS numbers.
- Do not ignore unposted months—penalties accrue monthly until the CLC takes effect.
- Enroll in SMS/email alerts via My.SSS so you receive confirmation of every remittance.
10. Sample Template — Employer Undertaking
[Company Letterhead]
Date: ___ To: The Social Security System Subject: Undertaking to Continue Salary-Loan Amortisation
This is to certify that [Employee Name], SSS No. ________, is presently employed with [Company Name], SSS ER No. ________ effective (date). We undertake to deduct from the employee’s salary and to remit to the SSS the required monthly amortisation for the outstanding Salary Loan, pursuant to the Certificate of Loan Continuance to be issued in our favour.
Authorized Signatory Name / Position Signature over printed name
11. Conclusion
The Certificate of Loan Continuance is a small but critical compliance document that preserves a member’s good credit standing with the SSS, protects employers from statutory penalties, and ensures the integrity of the government’s loan-repayment ecosystem. Mastery of its requirements—forms, valid IDs, employer undertakings, and accurate payroll posting—helps avoid hefty interest and legal exposure, while enabling seamless mobility of Filipino workers in an ever-dynamic labour market.
This article is for general information only and does not constitute legal advice. Consult the SSS or a qualified Philippine lawyer for case-specific guidance.