MANILA, Philippines – The Home Development Mutual Fund or Pag-IBIG Fund is scheduled to double the monthly contribution rate of its members starting February 1, its deputy chief executive officer said.
In a televised Palace briefing Thursday, Pag-IBIG Fund Deputy CEO for Member Services cluster Alexander Aguilar confirmed that the monthly contribution rate for its members will be doubled, or P200.
Currently, the average monthly contribution of an employee is set at P100, with the employer contributing an additional P100.
Starting next month, the employee will contribute P200, and the employer will contribute P200 more to cover the P10,000 monthly fund salary (MFS).
Under Circular No. 460, the Home Development Mutual Fund said that the new contribution rate covers both mandatory and voluntary members of the Pag-IBIG Fund.
However, Pag-IBIG Fund said that under the revised premium rate, members will gain access to higher cash loan entitlements and doubled savings.
“Lahat po ng benepisyo ng ating mga miyembro sa Pag-IBIG ay dodoble – ang kanilang maturity benefit; iyon pong kanilang ipon ng 20 years dodoble po mula po sa P87,000 – ngayon magiging P174,000 po iyan; iyong kanilang mga cash loans, iyong multipurpose loans po na tinatawag natin halimbawa, on the average is P22,000 – magiging P44,000 po ang maaaring mahiram nila. So, in the long run, mas maganda po ito para sa mga miyembro natin,” Aguilar said during the briefing.
Pag-IBIG Fund had been slated to increase the MFS from 2021 to 2023 to make the maximum MFS P10,000, but it was postponed due to the economic effects brought upon by the COVID-19 pandemic.
Over P38 billion worth of funds is expected to be accumulated with the scheduled hike in contribution rate by February, adding that it will increase the state-run corporation’s capacity to offer housing loans to its members.
