PRESIDENT Ferdinand R. Marcos, Jr., on Thursday said the state-run Social Security System (SSS) would cut interest rates on salary and calamity loans starting July as part of efforts to ease borrowing costs for workers amid rising prices.
“Starting July 2025, [SSS] members with a clean record will be able to avail themselves of SSS loans at lower interest rates,” he said in Filipino at a Labor Day event in Pasay City.
“The interest rate will go down to 8% for salary loans and 7% for calamity loans. These rates have been reduced from the previous 10%,” he added.
Starting September, the spouses of deceased pensioners can also apply for loans of as much as P150,000.
“The SSS is also coordinating with several financial institutions to explore the possibility of establishing a microcredit loan facility,” the President said. “This aims to address the urgent financial needs of its members.”
The reduced interest rate will be for members who have not availed themselves of penalty condonation in the past five years, the SSS said in a statement.
It added that the microcredit facility for SSS members would have a tenor of 15 to 90 days.
“When we see a framework for this micro-credit program, we will implement it as soon as possible,” SSS President and Chief Executive Officer Robert Joseph M. De Claro said in the statement.
Federation of Free Workers (FFW) President Jose Sonny G. Matula welcomed the move, but urged for much lower interest rate cuts.
“The government can still do better; it can still bring this down to 5%,” he said in a Viber chat. “Many workers have already pawned their ATM (automated teller machine) cards for loan sharks, so even with this loan relief, it’s not enough.”
He said the real solution is to increase wages. Labor groups have been calling for a legislated wage hike of P150 to P200 to keep up with inflation.
“Let’s be clear: Workers shouldn’t have to rely on loans just to get by. It would be better if there were no need to borrow just to survive,” he said.
“The better solution lies in addressing the root of the problem — low wages. We urge the government to go beyond debt relief and pursue a national living wage, job security and stronger social protection systems,” he added.
He called the SSS a “good band-aid,” adding that workers need “surgery-level” reforms.
Rising prices of essential goods such as food, fuel and transportation have placed increasing pressure on household budgets, particularly for minimum wage earners and low-income families. — Chloe Mari A. Hufana