Pag-IBIG to double monthly contribution rate in February

The Home Development Mutual Fund or Pag-IBIG Fund is set to double the monthly contribution rate of its members starting next month.

Under Pag-IBIG Fund’s contribution policy, the monthly fund salary (MFS), which is the basis of the 2% contribution rate, is pegged at a maximum of P5,000 a month. 

This means the average premium of members is currently capped at P100 per month, with the employer also paying P100 for the member’s savings fund.

But starting February, the MFS will be adjusted to P10,000, effectively doubling the monthly contribution to P200 for the employee and P200 for the employer.

Pag-IBIG Fund, however, emphasized that members would benefit from doubled savings and higher cash loan entitlements under the new premium rate.

“By implementing the new Pag-IBIG Monthly Savings Rates of both members and employers originally scheduled in 2021, not only would we be able to improve the benefits of our members, we would also be better equipped to finance the growing demand for home loans of our members while maintaining our affordable rates,” said Secretary Jose Rizalino Acuzar, who heads the Department of Human Settlements and Urban Development (DHSUD) and the 11-member Pag-IBIG Fund Board of Trustees.

Pag-IBIG Fund Chief Executive Officer Marilene Acosta, meanwhile, emphasized that this also means increased savings and loanable amounts for members.

“Under our new rates, they will have higher Pag-IBIG Savings that earn annual dividends, which they shall receive upon membership maturity or retirement... Because of their higher savings, they shall also be entitled to higher multi-purpose and calamity loan amounts to help them with their financial needs,” said the Pag-IBIG chief.

Pag-IBIG also said that the premium rate increase was long overdue since the last time that contribution rate was adjusted was in 1986.

Pag-IBIG Fund was supposed to increase the MFS in 2021, 2022, and 2023 to make the maximum MFS at P10,000 but was deferred to 2024 amid the lingering effects of the pandemic.

The agency again deferred the implementation of the increase in 2023, following the request of the Employers’ Confederation of the Philippines (ECOP) to provide the business community with time to further recover from the continuing financial challenges due to the health crisis. 

The deferment was also Pag-IBIG Fund’s response to the call of President Ferdinand Marcos Jr. early last year to alleviate the financial burden of fellow Filipinos due to the prevailing socio-economic challenges brought about by the COVID-19 pandemic. —VAL, GMA Integrated News