Photo from Unsplash | Carl Kho
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
Members who are residents of the calamity-stricken areas as declared and may be declared by the National Disaster Risk Reduction and Management Council (NDRRMC) and who suffered losses or damages to their properties located in the said calamity-stricken areas. (SSC Resolution No. 792, Series of 2016)
SSS Calamity Loan Assistance Program (CLAP)
The Calamity Loan Assistance Program (CLAP) is a program of the Social Security Commission offered to members of the SSS who are residents of the calamity-stricken areas as declared by the National Disaster Risk Reduction and Management Council (NDRRMC), and those who have suffered losses or damages to their properties located in such calamity-stricken areas. (SSC Resolution No. 792-s.2016)
Eligibility
A member who has paid at least thirty-six (36) monthly contributions shall be eligible to apply for calamity loan, provided that six (6) months contribution should have been made within the last twelve (12) months prior to the loan application.
SSC Resolution No. 792-s.2016 provides that:
“All currently contributing employed, self-employed and voluntary members applying for calamity loan assistance must meet the following eligibility requirements:
- The employed member’s employer must be updated in the payment of contributions and loan remittances, as applicable.
- The member must:
– Have at least thirty-six (36) posted monthly contributions, six (6) of which should be posted within the last twelve (12) months prior to the month of filing of application.
– Be a resident of the calamity declared areas and suffered losses/damages to their properties. A resident is one who has a home address/property at the stricken area.
– Have not been granted any final benefit (i.e., total permanent disability, retirement and death at the time of application.
– Not have an outstanding restructured loan under the SSS Loan Restructuring Program (LRP).” (Eligibility Requirements, SSC Resolution No. 792-s.2016)
Amount of Loan
Qualified members may apply for a loan in the amount equivalent to one month salary credit (MSC) computed based on the average of their last twelve (12) monthly salary or the total amount of damages as certified by the member in the application form (rounded up to the nearest thousand), whichever is lower. (Loanable Amount, SSC Resolution No. 792-s.2016)
Responsibilities of employer
- The employer shall be responsible for the collection through payroll deduction and remittance to the SSS of the amortization due on the employed member’s calamity loan assistance.
- The employer shall deduct the total balance of the loan from any company benefit due to the member and shall remit the same in full to SSS in case the member is separated from the company voluntarily (e.g., retirement or resignation) or involuntarily (e.g., termination of employment or cessation of operations of the company).
- The employer shall report to the SSS the effective date of separation from the company and the unpaid loan balance of the employed member, through the collection list, if the company benefit is insufficient to fully repay the loan.
- The employer shall require a new employee to secure from the SSS an updated statement of outstanding loan account, if any.
- The employer shall deduct and remit to SSS any outstanding loan balance of new employees. (Responsibilities of Employer, SSC Resolution No. 792-s.2016)
Question: In case a member transfers employment, what must he/she do?
SSC Resolution No. 792-s.2016 provides:
“Members who avail SSS calamity loan and thereafter transfer employment shall submit to their new employer an updated statement of account of any outstanding loan balance with SSS and allow their employer to deduct from their salary the corresponding amortization due, including any interest or penalty for late remittance.” (Responsibility of Member, SSC Resolution No. 792-s.2016)
Read also: What is the difference between Special Leave Benefit vis-à-vis SSS Sickness Benefit?
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding taxation and taxpayer’s remedies, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
All rights reserved.