MANILA, Philippines: In an effort to support the government’s Pambansang Pabahay para sa Pilipino (4PH) program, the Home Development Mutual Fund (HDMF) or Pag-IBIG Fund is set to implement new savings rates for its members. The increased contributions are expected to generate P38 billion, which will be used to finance the construction of affordable housing units and high-rise facilities. This move aims to provide more housing loan opportunities for Pag-IBIG members at affordable and low-interest rates.
During a public forum on PTV4, Hilario “Alex” Aguilar, the Pag-IBIG deputy chief executive officer, explained that the additional funds would be allocated to the Department of Human Settlements and Urban Development (DHSUD) for the development of low-cost condominium units and high-rise housing facilities. Aguilar emphasized that the availability of these structures would encourage more Pag-IBIG members to take advantage of the housing loan program.
Aguilar also highlighted the upcoming launch of Pag-IBIG’s Quick Loan program, which will enable members to access short-term loans through their mobile phones. The program will offer loan amounts of P5,000, P10,000, and P15,000, which can be easily claimed using loyalty or cash cards or G-cash. This initiative aims to provide financial assistance to members during emergency situations.
Furthermore, Pag-IBIG Fund plans to introduce the Health and Education Loan program. Under this program, members will have the option to use their savings for either their children’s tuition fees or emergency medical needs. This expansion of services demonstrates Pag-IBIG’s commitment to supporting its members’ overall well-being.
The increase in members’ contributions will also result in higher benefits, cash loans, and maturity benefits. For instance, under the previous rates, a member would receive approximately P87,000 upon reaching membership maturity. However, with the new rates, a member who saves for 20 years would receive P174,000, doubling the amount they would have received previously.
Marilene Acosta, the Chief Executive Officer of Pag-IBIG Fund, emphasized that the higher savings would entitle members to higher multi-purpose and calamity loans, providing them with additional financial support when needed. The adjustment in the maximum monthly compensation used in computing the required savings reflects Pag-IBIG’s commitment to ensuring the financial security of its members.
Starting in February, the new scheme will require Pag-IBIG Fund members to increase their monthly savings from P100 to P200, including both the employee’s share and the employer’s counterpart. This adjustment aligns with the increase in the maximum monthly compensation, which will be raised from P5,000 to P10,000.
Pag-IBIG Fund expressed gratitude for the support received from various organizations, including the Trade Union Congress of the Philippines, Federation of Free Workers, Philippine Government Employees’ Association, Overseas Filipino Workers’ organizations, and the Employers’ Confederation of the Philippines (ECOP). These partnerships have been instrumental in the successful implementation of the new savings rates.
Originally scheduled for implementation in 2021, the new monthly rates were delayed due to the COVID-19 pandemic. Last year, the implementation was further postponed to accommodate the request of the ECOP, allowing the business community more time to recover from the financial losses caused by the pandemic.
In conclusion, the increase in Pag-IBIG Fund members’ savings rates will contribute significantly to the government’s national housing program. The additional funds generated from the higher contributions will be used to construct affordable housing units and high-rise facilities, providing more housing loan opportunities for Pag-IBIG members. Furthermore, Pag-IBIG Fund’s expansion of services, such as the Quick Loan program and the Health and Education Loan program, demonstrates its commitment to supporting members’ financial needs and overall well-being.
Source: The Manila Times
