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1 LAST PAY PAID TO SSS AND PAG IBIG LOANS on Mon Jan 26, 2015 1:32 pm


Arresto Menor
Before I resigned from the company, I still have a cash advance amounting to 6k. Since I was confident that my 13th month pay can cover my CA, I will be free of debt from the company. Resigned: OCt2014. When I got a feedback from HR, they paid my whole last pay to SSS and PAG IBIG and I still owe them my cash advance.

I dont understand why they have to deduct first all my government loans and not my company loan first then whatever is left, they pay that to SSS and pag ibig.

When I raised this concern to HR and payroll they said the system computes for the last pay and it AUTOMATICALLY deducts the government loans. Is this process acceptable?

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2 Re: LAST PAY PAID TO SSS AND PAG IBIG LOANS on Mon Jan 26, 2015 5:28 pm


Reclusion Perpetua
Generally external loans are first deducted before other accountabilities.

Rationale behind this is that:

1. they are all accountabilities whichever way you look at them
2. if the government loans are paid last and there is a balance, they may collect from both you and the company

Also, it is not prohibited to deduct the loans so the process should not be in question in the first place.

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