Pag-IBIG scores FFW support for 2024 contribution hike

The Home Development Mutual Fund (Pag-IBIG) on Monday said it secured the support of labor organization Federation of Free Workers (FFW) on its plan to increase its mandatory monthly savings for both members and employees.

In a statement, Pag-IBIG said it received a letter from the FFW citing the agency’s fund management program, mandated to generate more savings for Filipino workers and provide accessible funds for housing of every member.

“With this increase, we recognize that our fellow workers will be entitled to greater savings when their memberships (with Pag-IBIG Fund) mature or upon retirement,” FFW National President Sonny Matula said.

“We particularly note the equal increase in employers’ counterpart contributions, which will result in more substantial savings for our fellow workers,” he added.

Pag-IBIG will implement the deferred increase in members’ contribution starting this month, increasing the maximum monthly compensation to be used in computing the required 2% employee savings and 2% employee share to P10,000 from P5,000 previously.

This would translate to a monthly cap of P200 for the average premium of members, with the employer also paying P200 for the member savings fund.

“The increase in our monthly savings rates mean that our members shall have higher Pag-IBIG Savings that earn annual dividends, which they shall receive upon membership maturity or retirement,” Pag-IBIG Fund Chief Executive Officer Marilene Acosta said.

“And, 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. On an equally important note, our new rates shall allow us to continue providing affordable home loans to our members in the coming years,” she added.

The Pag-IBIG Fund was scheduled to increase the monthly fund salary (MFS) in 2021, 2022, and 2023 to make it P10,000, but this was deferred to 2024 amid the lingering effects of the COVID-19 pandemic. — DVM, GMA Integrated News