The Employers Confederation of the Philippines (ECOP) has expressed its support for the plan of Pag-IBIG Fund to increase the monthly contribution of its members. According to ECOP Honorary Chairman and President Sergio Ortiz-Luiz Jr., Pag-IBIG Fund has been responsive to their requests to postpone the implementation of new savings rates for the past three years due to the challenges brought by the pandemic. However, this time around, ECOP has no objection to the plan to push through with the increase this year.
Ortiz-Luiz emphasized that ECOP’s support is based on their observation of how Pag-IBIG Fund effectively manages the funds entrusted to them by their members. He also highlighted that the increase in savings rates will benefit the members by boosting their forced savings.
Pag-IBIG Fund Chief Executive Officer Marilene Acosta expressed gratitude for the support of both employer and labor groups as they plan to implement the increase in savings rates, which have remained unchanged for almost four decades. Acosta acknowledged the productive discourse between Pag-IBIG Fund and ECOP in shaping responsive policies for the benefit of their stakeholders. She further explained that the implementation of the new rates is necessary to enhance member benefits, address the growing loan demand, maintain the affordability of home loans, and ensure the sustainability and growth of Pag-IBIG Fund.
Under the new savings rates of Pag-IBIG Fund, the maximum monthly compensation used to compute the required employee savings and employer share will be increased from P5,000 to P10,000. Consequently, the monthly savings for both the employee’s share and the employer’s counterpart will increase from P100 to P200.
The increase in savings rates was approved by Pag-IBIG Fund in 2019, with the concurrence of stakeholders, for implementation in 2021. However, due to the impact of the Covid-19 pandemic, the implementation was deferred in 2021, 2022, and 2023. Pag-IBIG Fund heeded the requests of the business community, led by ECOP, as well as the directive of President Ferdinand Marcos Jr., to provide relief to workers and employers amidst the ongoing effects of the pandemic.
The decision to proceed with the increase in savings rates this year reflects Pag-IBIG Fund’s commitment to adapt to changing circumstances and prioritize the welfare of its members. By implementing the new rates, Pag-IBIG Fund aims to enhance member benefits, cater to the growing loan demand, and ensure the long-term sustainability and growth of the organization.
In conclusion, the Employers Confederation of the Philippines’ support for Pag-IBIG Fund’s plan to increase member contributions demonstrates the trust and confidence they have in the organization’s ability to manage the funds and provide valuable benefits to its members. The implementation of the new savings rates will not only boost forced savings but also contribute to the overall stability and growth of Pag-IBIG Fund.
Source: The Manila Times
