SSS says salary loans increasing

More salary loans from the Social Security System were availed of as more members regained eligibility to borrow due partly to a loan penalty condonation program that ends June 30.

Edgar Solilapsi, SSS officer in charge, said in a statement the pension fund released a total of P3.6 billion in salary loans for some 250,000 members in the first quarter.

The amount was 41 percent higher than the P2.6 billion for the same period last year, Solilapsi said.

“The first-quarter releases included renewals of employed members who regained loan eligibility after settlement of their overdue amortization under [the condonation program] that started last January 3,” Solilapsi added.

Solilapsi explained that employers must be updated in remitting contributions and loan amortization to enable their employees to be eligible for salary loans.

“We call on delinquent employers to avail [themselves] of the program before it ends on June 30,” he said.

The program offers employers the opportunity to settle overdue loans of their employees without paying the one-percent monthly penalty.

Employers can pay in full within the six-month availment period or make installment payments for up to 24 months.