CLAP for SSS Members: Full Guide

In the wake of natural disasters, financial stability becomes a pressing concern for many. The Social Security System (SSS) has introduced the Calamity Loan Assistance Program (CLAP) to provide relief to its members affected by tropical cyclones such as Typhoons Karding, Paeng, and others. This guide will walk you through the essential details of the program, ensuring you understand the eligibility criteria, loan amount, payment terms, and application process.

Scope of the Program

The CLAP is designed for SSS members residing in areas declared as calamity-stricken by the National Disaster Risk Reduction and Management Council (NDRRMC). The program aims to offer financial assistance to help members recover from the adverse effects of natural disasters.

Availment Period

The availment period begins on the date of issuance of the Circular and extends for ninety (90) calendar days. This period may be extended or modified by subsequent circulars.

Eligibility Criteria

To qualify for the CLAP, members must meet the following criteria:

1. Registered on the SSS website (My.SSS facility) for online application.

2. At least thirty-six (36) posted monthly contributions, with six (6) contributions within the last twelve (12) months before the application month.

3. For self-employed, voluntary, and non-working spouse members, at least six (6) posted monthly contributions under the current membership type.

4. Residents of the calamity-stricken areas with a home address in the declared area.

5. Must not be receiving any final benefit (e.g., retirement, total disability, or death benefits).

6. No outstanding SSS Short-Term Member Loans.

7. No outstanding Loan Restructuring Program or CLAP.

8. Certified by the employer through online My.SSS facility in loan application, if employed.

Loan Amount

The loan amount is equivalent to one (1) monthly salary credit (MSC) computed based on the average of the last twelve (12) MSCs, rounded up to the nearest thousand, with a maximum of PHP 20,000.

Payment Term and Deadline of Payment

1. The loan is payable within two (2) years in twenty-four (24) equal monthly installments.

2. The loan amortization starts on the 2nd month following the approval date.

3. Payments are due on or before the last day of the month following the applicable month.

4. If the payment deadline falls on a weekend or holiday, payment is due on the next working day.

5. Payments can be made through any payment channel (SSS Automated Teller System, SSS-accredited banks, and Non-Bank Collection Partners).

Service Fee, Interest Rate, and Penalty

1. A service fee of 1% of the loan amount is deducted.

2. The loan has a 10% annual interest rate, computed on a diminishing principal balance and amortized over twenty-four (24) months.

3. A 3% penalty for late amortization payments.

4. Any excess in the amortization payment is applied to the outstanding principal balance.

5. A 1% per month penalty for loan amortization not remitted on the due date.

Filing of Application

Members must apply for CLAP through the SSS website via the My.SSS account.

Updating of Member’s Home Address

Members must update their home address if they relocate during the CLAP availment period by submitting the Member Data Change Request Form (SSS Form E-4) with proof of billing.

Responsibilities of the Member

1. Update home address information.

2. Ensure sufficient funds in the bank account for loan deduction.

3. Notify the employer of any employment status changes.

4. Secure an updated statement of account through the My.SSS account.

Other Conditions

1. The loan must be fully paid before availing of future SSS loans.

2. Any overpayment is applied to the active loan.

3. Aggregate unpaid obligations exceeding PHP 5,000 are deducted from final benefits.

4. Immediate payment of the outstanding balance if the member fails to pay.

Release of Loan Proceeds

Loan proceeds are released through:

1. Unified Multi-Purpose Identification (UMID) – Automated Teller Machine (ATM) card.

2. PESONet participating banks.

3. Disbursement Account Enrollment Module (DAEM) via the My.SSS account.

By understanding these guidelines, SSS members can effectively navigate the CLAP application process and secure the financial assistance needed during challenging times.

Reference: CI-2024-005 Annex 1