MANILA, Philippines: In a move to provide better benefits for its millions of members, Pag-IBIG Fund plans to raise the mandatory monthly savings for both members and their employers starting February 2024. This adjustment will result in higher savings, increased cash loans, and improved home loan opportunities.
“We at Pag-IBIG Fund have long recognized the need for our members to have higher savings that can provide them with decent and fair returns upon their retirement, as well as higher cash loans to help them during times of need,” stated Pag-IBIG Fund Chief Executive Officer Marilene Acosta. Acosta expressed her appreciation for the support of stakeholders in the plan to increase the monthly contribution rate, assuring members of better benefits under the agency’s new rates.
Under the new rates, members will enjoy higher Pag-IBIG savings that earn annual dividends, which they will receive upon membership maturity or retirement. For example, under the old rates, a member would receive around P87,000 upon reaching membership maturity. However, with the new rates, a member who saves for 20 years would receive P174,000, double the amount. This increase in savings will also entitle members to higher multi-purpose and calamity loan amounts, providing them with greater financial support when needed.
Pag-IBIG Fund is grateful for the support shown by various organizations, including the Trade Union Congress of the Philippines (TUCP), Federation of Free Workers (FFW), Philippine Government Employees’ Association (PGEA), Overseas Filipino Workers’ (OFW) organizations, and ECOP, in its plans to raise the contribution rates. Acosta emphasized that raising the monthly savings rates will enable Pag-IBIG Fund to continue providing affordable home loans to its members in the coming years.
Starting next month, the monthly savings of Pag-IBIG Fund members, both the employee’s share and the employer’s counterpart, will increase to P200 each from the current P100. This adjustment follows the increase in the maximum monthly compensation used to compute the required two percent employee savings and two percent employer share for Pag-IBIG Fund members, which will now be P10,000 instead of the current P5,000.
Department of Human Settlements and Urban Development (DHSUD) Secretary Jose Rizalino Acuzar highlighted that with the new monthly savings rates, DHSUD will 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, stated that these changes align with the call of President Ferdinand Marcos Jr. to provide Filipino workers with opportunities to lead comfortable and productive lives.
The new monthly savings rates were approved by the Board of Trustees in 2019 and were initially scheduled for implementation in 2021. However, due to the Covid-19 pandemic and its impact on the economy, Pag-IBIG Fund decided to defer the implementation in 2021 and 2022. The agency was prepared to implement the contribution hike in 2023 but responded to the request of the Employers’ Confederation of the Philippines (ECOP) to allow the business community more time to recover from the financial challenges brought about by the health crisis. This deferment also aligned with the Chief Executive’s call last year to alleviate the financial burden of Filipinos due to the prevailing socio-economic challenges caused by the pandemic.
In conclusion, the increase in monthly savings for Pag-IBIG Fund members will provide them with higher savings, improved loan benefits, and better opportunities for homeownership. These changes reflect Pag-IBIG Fund’s commitment to supporting its members’ financial needs and ensuring their future security.
Source: The Manila Times
