The Home Development Mutual Fund, also known as Pag-IBIG Fund, announced on Wednesday that its members would enjoy improved benefits as the agency implements higher rates starting in February. Recognizing the need for higher savings and better financial assistance, Pag-IBIG Fund aims to provide its members with decent returns upon retirement and increased cash loans during times of need.
According to Marilene Acosta, the Chief Executive Officer of Pag-IBIG Fund, the higher savings of members will entitle them to higher multi-purpose and calamity loan amounts, addressing their financial needs more effectively. This move is in response to the growing demand for financial support among members.
Starting next month, both the employee’s share and the employer’s counterpart in the monthly savings of Pag-IBIG Fund members will increase to P200 each from the current P100. This adjustment is based on the increase in the maximum monthly compensation used to compute the required 2 percent employee savings and 2 percent employer share, which will now be P10,000 instead of P5,000.
Jose Rizalino Acuzar, the Secretary of the Department of Human Settlements and Urban Development (DHSUD), expressed his confidence in the new rates, stating that the DHSUD will now be better equipped to finance the growing demand for home loans while maintaining affordable rates. Acuzar, who also heads the 11-member Pag-IBIG Fund Board of Trustees, emphasized that these changes align with the government’s goal of providing Filipino workers with opportunities to lead comfortable and productive lives.
Under the new rates, members will have higher Pag-IBIG savings that earn annual dividends, which they can receive upon membership maturity or retirement. To illustrate the impact of these changes, let’s consider an example. Under the old rates, a member would receive approximately P87,000 upon reaching membership maturity. However, with the new rates, a member who saves for 20 years can expect to receive P174,000, double the previous amount.
Pag-IBIG Fund expressed its gratitude for the support of various organizations, including 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 their plans to raise the contribution rates. The approval of the new monthly saving rates by the Board of Trustees in 2019 was initially scheduled for implementation in 2021 but was delayed due to the Covid-19 pandemic. Furthermore, the implementation was further delayed last year to accommodate the request of the ECOP, allowing the business community more time to recover from the losses incurred during the pandemic.
In conclusion, the implementation of higher contribution rates by Pag-IBIG Fund signifies a significant step towards providing better benefits for its members. With increased savings and loan amounts, members can expect improved financial security and assistance during various life stages. Pag-IBIG Fund remains committed to supporting Filipino workers in their pursuit of comfortable and productive lives, aligning with the government’s vision for a prosperous nation.
Source: The Manila Times
