The Government Service Insurance System (GSIS) has introduced ‘Balik Ginhawa’, an alternative three-month loan moratorium.

This new programme is specifically designed to help government employees cope with rising living costs.

Announced on 1 April 2026, the initiative is a response to the financial strain caused by surging global oil prices and their subsequent impact on food and energy expenses.

Rather than pausing loan payments, the GSIS will continue regular deductions.

However, participants will receive a single lump-sum refund equal to their loan amortisations for the period between December 2025 and February 2026.

The funds will be credited directly to members’ accounts.

A statement from the state pension fund explained the rationale behind this approach:

“This would enable members to immediately access a meaningful amount that they can use for urgent personal and household needs, instead of receiving smaller amounts spread out over time.”

GSIS President and General Manager Wick Veloso noted that the scheme aims to provide immediate financial relief to borrowers.

The programme is entirely voluntary, and interested members must apply through the GSIS Touch mobile application.

Once approved, the programme extends its existing loan terms by three months without adding any penalties or interest charges.

Furthermore, this financial assistance measure supports the Philippine government’s broader Unified Package for Livelihoods, Industry, Food, and Transport (UPLIFT) programme as it helps citizens navigate current economic challenges.

Featured image: Edited by Fintech News Philippines based on images by Achmad Khoeron via Freepik and Rizalninoynapoleon via Wikimedia Commons.