SSS Presents New Loan Penalty Condonation Program

The Social Security System (SSS) has launched a new penalty condonation program aimed at assisting its members in repaying their outstanding loans.

This program, known as the Consolidation of Past Due Short-Term Member Loans with Condonation of Penalty, offers an opportunity for eligible members to settle their loan balances without incurring any penalties.

SSS President and Chief Executive Officer, Michael G. Regino, emphasizes the importance of this initiative in helping members regain their good standing with the SSS.

Eligibility and Program Details

Under the SSS Condonation Program, members who have unpaid short-term loans such as Salary Loans, Salary Loan Early Renewal Program (SLERP), Calamity Loans, Emergency Loans, and Restructured Loans may qualify.

To be eligible for the program, members must meet certain criteria:

  • They must have a past-due short-term member loan at the time of application.
  • They should not have received any final benefits, such as permanent total disability or retirement.
  • They should not have been disqualified due to fraudulent activities committed against the SSS.
  • They must have an active My.SSS account.

Consolidation and Condonation

Upon approval, the SSS will consolidate the principal and interest of the member’s past-due short-term loans into one consolidated loan.

Additionally, all unpaid penalties will be consolidated and condoned once the consolidated loan is fully paid.

This streamlined approach simplifies the repayment process for members and provides them with a fresh start to settle their financial obligations.

Payment Options For Condonation Program

Interested members have two payment options available to them. They can choose to make a one-time payment within thirty (30) calendar days after receiving the approval notice.

Alternatively, members can opt for an installment scheme. In this case, they must pay a down payment equivalent to at least 10% of the consolidated loan within thirty (30) calendar days after receiving the approval notice.

The remaining balance can be paid over a period of up to 60 months, depending on the loan amount.

Consequences of Non-Compliance

It is important for members to adhere to the payment terms outlined in the consolidated loan agreement.

Failure to meet these terms will result in deductions from the member’s short-term benefits, such as sickness, maternity, or partial disability claims, as authorized by the Social Security Commission (SSC).

Moreover, the outstanding balance of the consolidated loan may also be deducted from the death benefit of the member’s beneficiaries or deducted from their final benefit claims.

Addressing the Impact of the Pandemic

SSS recognizes the adverse effects of the pandemic on the livelihoods of many members.

The SSS Chief, Michael G. Regino, acknowledges that some members may be facing financial difficulties, making it challenging for them to fulfill their loan obligations.

Hence, the SSS has designed the consolidated program to accommodate these circumstances by waiving penalties and offering flexible payment terms.

The program aims to support members in settling their loan obligations while providing them with much-needed financial relief during these challenging times.


The SSS Condonation Program serves as a lifeline for SSS members burdened by unpaid loans.

By consolidating and condoning penalties, the program facilitates a simplified and manageable repayment process.

Through this initiative, the SSS aims to help members regain their financial footing and reestablish their good standing.

Members are encouraged to take advantage of this opportunity by submitting their applications online through their My.SSS accounts.

The SSS stands ready to assist its members in their journey toward financial stability and peace of mind.

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