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Authorization Letter To Deduct Sss Loan for Philippines

Authorization Letter To Deduct Sss Loan Template for Philippines

An Authorization Letter to Deduct SSS Loan is a formal document used in the Philippines that enables an employer to make regular deductions from an employee's salary to repay their SSS loan. This document serves as the employee's written consent for such deductions, complying with Philippine labor laws and SSS regulations. The letter establishes the terms of the deduction, including the amount to be deducted, frequency of deductions, and duration of the authorization. It's a crucial document that protects both employer and employee interests while ensuring proper loan repayment through salary deduction mechanisms established by the Philippine Social Security System.

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What is a Authorization Letter To Deduct Sss Loan?

The Authorization Letter to Deduct SSS Loan is a essential document in the Philippine employment landscape, required whenever an employee obtains a loan from the Social Security System (SSS) and chooses to repay it through salary deductions. This document becomes necessary after an employee's SSS loan approval and before the commencement of deductions. It serves as the employer's legal basis for making regular deductions from the employee's salary, protecting both parties and ensuring compliance with Philippine labor laws, particularly Article 113 of the Labor Code regarding authorized wage deductions. The letter typically includes specific details about the loan amount, monthly amortization, and deduction period, and must be properly executed before any deductions can begin. This authorization remains in effect until the loan is fully paid or until explicitly revoked by the employee, subject to SSS guidelines.

What sections should be included in a Authorization Letter To Deduct Sss Loan?

1. Date and Place: Current date and location where the letter is being executed

2. Addressee Details: Complete details of the employer/company, including name, address, and department

3. Subject Line: Clear indication that this is an Authorization for SSS Loan Deduction

4. Employee Information: Complete details of the employee including full name, SSS number, employee ID, and position

5. Loan Details: Specific information about the SSS loan including loan amount, monthly amortization, and term of payment

6. Authorization Statement: Clear and explicit statement authorizing the employer to deduct the specified amount from salary

7. Implementation Details: When the deduction should start and the duration of the authorization

8. Contact Information: Employee's contact details for verification purposes

9. Signature Block: Space for employee's signature, printed name, and date

What sections are optional to include in a Authorization Letter To Deduct Sss Loan?

1. Witness Section: Section for witnesses to sign - used when additional verification is required by company policy

2. Co-maker Information: Details and signature of co-maker if required by SSS loan terms

3. Acknowledgment: Space for employer's acknowledgment of receipt - used when company policy requires formal acceptance

4. Revocation Clause: Statement about conditions for revoking the authorization - included when company policy requires it

What schedules should be included in a Authorization Letter To Deduct Sss Loan?

1. SSS Loan Details Attachment: Copy of SSS loan approval or loan details from SSS

2. Payment Schedule: Detailed schedule of monthly deductions showing dates and amounts

3. Company Policy Reference: Relevant company policies regarding salary deductions, if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Philippines

Publisher

Ƶ

Sector

Banking

Cost

Free to use
Relevant legal definitions




















Clauses















Relevant Industries

Banking and Financial Services

Business Process Outsourcing

Manufacturing

Retail

Construction

Information Technology

Healthcare

Education

Government

Transportation and Logistics

Hospitality

Agriculture

Mining

Real Estate

Professional Services

Relevant Teams

Human Resources

Payroll

Finance

Accounting

Legal

Employee Relations

Compensation and Benefits

HR Operations

Relevant Roles

HR Manager

Payroll Manager

Finance Manager

HR Officer

Payroll Officer

Finance Officer

HR Administrator

Payroll Administrator

Compensation and Benefits Specialist

HR Business Partner

Finance Controller

Accounting Manager

Employee Relations Manager

HR Operations Manager

Benefits Administrator

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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