Social security is primarily a social insurance program that provides social protection of illness, disability, pregnancy and childbirth, old age, death, poverty and other unforeseen circumstances leading to loss of income or deterioration of financial condition. The SSS (Social Security System) manages the social security system in the Philippines giving the opportunity to apply for sss loan.
Social security number
Social Security number which you are assigned is a unique number of service life that is used in any SSS transactions including salary loan sss. You can register with SSS by filling in the SS-E-1 form (for employed members), SS-RS-1 form (for self-employed members) or SS Form NW-1 and present it with the original or certified copy of any of the primary or any two secondary documents in any SSS industry near you.
- Among the list of primary documents are: birth certificate, passport, driver’s license, etc.
- Among the secondary documents are: registration certificate for foreigners, ID card, credit card, etc. You can also apply for a social security number on the Internet.
The Social Security allowance that you receive is calculated on the basis of the earnings reports provided by your employer (or you, if you are self-employed) to your social security number. Therefore, you should always use the correct social security number. Make sure that your name and surname on the documents coincide with the name and surname on your social security card. Otherwise you may face with some problems while trying to make a loan according to a sss salary loan requirements. If you ever change your name or surname, you must change your first or last name on the social security card.
The amount of the social security allowance
As a rule, the social security allowance is a certain percentage of your average earnings during a lifetime. Low-paid workers receive a higher percentage of average earnings during their lives. Also they can pretend for higher money amount while filling in the sss loan application. Higher-paid workers get lower percentage and their amount of money while making an sss online application is lower. An employee with an average salary level can expect a pension allowance equal to approximately 40% of his average earnings over a lifetime. When creating a social security system, it was not intended that a social security benefit would be the only source of income for you after retirement or disability, or in case of your death will be the only source of income for your family. The social security allowance is an addition to savings, investments, pensions and insurances. One more addition is the sss loan which requirements are not very strict.
Social security taxes
If you work for hire, your employer withholds your social security and Medicare taxes from your salary. These taxes are transferred to the Internal Revenue Service (IRS). Your employer transfers to the IRS the same amount that was withheld from your salary. The employer informs the Social Security Service of the full amount of your earnings. If you are self-employed, you pay full social security taxes when filing a tax declaration. IRS reports your earnings to the Social Security Service. You pay an interest rate equal to the amount of your and employer’s share. Also there are special tax deductions that can be used to reduce taxes.
Who can apply for a SSS loan?
Prior to sorting out how to apply for sss loan, you must carefully read all the requirements for such loan type. Among the main requirements for making the loan are:
- You must be a SSS member who is currently employed,
- You must be self-employed, or a voluntary contributor with at least 36 posted monthly payments to your name.
- Six of those monthly contributions have to been made within the twelve months prior to the moment you fill your application for the loan.
Moreover, in addition to these requirements:
- you must be below 65 years old and have not get from the SSS any “financial benefits,” such as in the case of total permanent disability, retirement, or death yet.
- Your employer must be fully updated on the monthly contributions you have made,
- and you must not have been disqualified due to a previous case of fraud against the Social Security System.
Now we are ready to sort out the main steps of how to get sss loan. They are following:
- Visit the official website of SSS and create a registration account by entering your personal data, such as email address, SSS number, name, surname and date of your birth. After that you will be ready to fill in the special application for SSS loan.
- If after filling the form you will meet all the requirements, system will inform you about your eligibility for such loan.
- After the confirming your eligibility for the SSS loan you should agree with the conditions and terms of the contract. Then you will be able to enter the desired money amount.
- After that you should wait week or more for the final answer. When everything is ready, you will receive a call and be ready to take your first check.
There is nothing special and difficult in how to apply for loan in sss and in sss loan renewal, if there are no problems with your documents and application, you have all chances to get this loan quickly and without efforts.
There are two different ways on how to pay your SSS loan repayments online. For this purpose, you can use either online banking or Bancnet. Note, that for online banking your bank should be a partner of SSS.