THE Home Development Mutual Fund or Pag-IBIG Fund on Wednesday said that its members would enjoy better benefits as the agency implements higher rates starting in February.
“We at Pag-IBIG Fund have long recognized the need of our members to have higher savings that shall provide them with decent and fair returns upon their retirement, as well as higher cash loans to help them during times of need,” the agency said in a statement.
“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,” Pag-IBIG Fund Chief Executive Officer Marilene Acosta said.
Starting next month, the monthly savings of Pag-IBIG Fund members for both the employee’s share and the employer’s counterpart shall increase to P200 each from the current P100.
This follows the adjustment in the maximum monthly compensation to be used in computing the required 2 percent employee savings and 2 percent employer share for Pag-IBIG Fund members, which shall now increase to P10,000 from P5,000.
Department of Human Settlements and Urban Development (DHSUD) Secretary Jose Rizalino Acuzar said that with the new monthly savings rates of both members and employers, the DHSUD would now be better equipped to finance the growing demand for home loans of members while maintaining affordable rates.
“All these are in line with the call of President Ferdinand Marcos Jr. to provide Filipino workers with opportunities to gain comfortable and productive lives,” said Acuzar, who also heads the 11-member Pag-IBIG Fund Board of Trustees.
Under the new rates, members will have higher Pag-IBIG savings that earn annual dividends, which they shall receive upon membership maturity or retirement.
For example, based on its old rates, a member would receive around P87,000 upon reaching membership maturity.
On the one hand, a member who saves under the new rates over a period of 20 years would receive P174,000 or double the amount.
Acosta said they were thankful for the support of the Trade Union Congress of the Philippines, Federation of Free Workers, Philippine Government Employees’ Association, Overseas Filipino Workers’ organizations, and Employers’ Confederation of the Philippines (ECOP) in its plans to raise the contribution rates.
Approved by the Board of Trustees in 2019, the new monthly saving rates were originally scheduled to be implemented in 2021 but were delayed due to the Covid-19 pandemic.
Its implementation was again delayed last year due to the request of the ECOP to provide the business community more time to recover losses during the pandemic.
