Pag-IBIG members to gain more benefits under new rates starting February 2024

by Info @Brand Zone | January 17, 2023

Pag-IBIG Fund members are set to enjoy doubled savings and higher cash loan  entitlements while continuing to have access to affordable home loans, as the agency  is set to increase the nearly four-decade old mandatory monthly savings for both  members and their employers starting February 2024, officials announced  Wednesday (17 January). 

Under the agency’s new rates, the monthly savings of Pag-IBIG Fund members for  both the employee’s share and the employer’s counterpart shall increase to two  hundred pesos (P200) each from the current one hundred pesos (P100). This follows  the adjustment in the maximum monthly compensation to be used in computing the  required two percent (2%) employee savings and two percent (2%) employer share for Pag-IBIG Fund members, which shall now increase to ten thousand pesos  (P10,000) from the current five thousand pesos (P5,000).  

“We at Pag-IBIG Fund have long recognized the need of our members to have higher savings  that shall provide them with decent and fair returns upon their retirement, as well as higher  cash loans to help them during times of need. By implementing the new Pag-IBIG Monthly  Savings Rates of both members and employers originally scheduled in 2021, not only would  we be able to improve the benefits of our members, we would also be better equipped to finance  the growing demand for home loans of our members while maintaining our affordable rates.  All these are in line with the call of President Ferdinand Marcos, Jr. to provide Filipino  workers with opportunities to gain comfortable and productive lives,” said Secretary Jose  Rizalino L. Acuzar, who heads the Department of Human Settlements and Urban  Development (DHSUD) and the 11-member Pag-IBIG Fund Board of Trustees. 

Pag-IBIG Fund’s new monthly rates were initially approved by its Board of Trustees  in 2019, after obtaining the concurrence of stakeholders to implement a scheduled  increase in 2021. During that time, the agency saw the increase necessary as it  projected that the amount of loans disbursed will eventually outpace the total  collections from both loan payments and members’ savings. However, due to the  difficulties brought about by the COVID-19 pandemic in 2021 and 2022, the Pag-IBIG  Fund Board deferred the increase of the agency’s savings rates. 

The agency again deferred the implementation of the increase in 2023, following the  request of the Employers’ Confederation of the Philippines (ECOP) to provide the  business community with time to further recover from the continuing financial  challenges due to the health crisis. The deferment was also the Pag-IBIG Fund’s  response to the call of President Ferdinand Marcos, Jr. early last year, to alleviate the  financial burden of fellow Filipinos due to the prevailing socio-economic challenges  brought about by the COVID-19 pandemic. 

Pag-IBIG Fund Chief Executive Officer Marilene C. Acosta, meanwhile, expressed  her appreciation for the support of stakeholders, and assured members of better  benefits under the agency’s new rates. 

“We thank the Trade Union Congress of the Philippines (TUCP), the Federation of Free  Workers (FFW), the Philippine Government Employees’ Association (PGEA), Overseas  Filipino Workers’ (OFW) Organizations, and the Employers’ Confederation of the  Philippines (ECOP) for supporting our plans and for recognizing that raising our monthly  savings rates will allow Pag-IBIG Fund to continue to provide affordable home loans to its  members in the coming years,” Acosta said. 

“It is also important to note that the increase in our monthly savings rates shall benefit our  members the most because every peso they save will go to their Pag-IBIG Savings. Under our  new rates, they will have higher Pag-IBIG Savings that earn annual dividends, which they  shall receive upon membership maturity or retirement. For example, based on our old rates, a  member would receive around P87,000 upon reaching membership maturity. On the other  hand, a member who saves under our new rates over a period of 20 years would receive  P174,000 or double the amount. And, because of their higher savings, they shall also be  entitled to higher multi-purpose and calamity loan amounts to help them with their financial  needs,” Acosta emphasized.

OFW groups join support for Pag-IBIG contribution hike

by Info @Brand Zone | January 16, 2023

OFW organizations are also backing Pag-IBIG Fund’s plan to increase members' monthly savings rate this year, agency officials announced Tuesday, (16 January).

After gaining support from labor and employer groups, Pag-IBIG Fund's plan also received nods from the Kapisanan ng mga Kamag-anak at Migranteng Manggagawang Pilipino, Inc. (KAKAMMPI), the Kabalikat ng Migranteng Pilipino, Inc. (KAMPI), the Kaibigan ng mga OCWs, and several other OFW groups.

“We support unequivocally Pag-IBIG Fund’s proposal to increase the contributions of its members. An increase in contributions is definitely a step towards the right direction as this would mean more funds that could be employed for the benefit of members seeking to apply for home loans and short-term loans. Not only is it timely, but more importantly, it is the right thing to do,” said Luther Calderon, who serves as President of KAMPI.

In their respective letters sent to Pag-IBIG Fund, the OFW groups noted that the new Pag-IBIG monthly savings rates would enable members to improve their benefits and better prepare for the future.

Under Pag-IBIG Fund’s new savings rates, the maximum monthly compensation to be used in computing the required 2% employee savings and 2% employer share of Pag-IBIG Fund members shall be increased to P10,000, from the current P5,000. As a result, the monthly savings of Pag-IBIG Fund members, for both the employee’s share and the employer’s counterpart, shall increase to P200 each from the current P100.

Pag-IBIG Fund Chief Executive Officer Marilene C. Acosta, meanwhile, expressed her appreciation for the support of the OFW groups and gave assurance that Pag-IBIG Fund members shall receive better benefits under the agency’s new rates.

“We thank the KAKAMMPI, KAMPI, Kaibigan ng mga OCWs and all other OFW groups for their support and sharing in our efforts to improve the benefits received by our members, including our fellow Filipinos working overseas, by increasing our monthly savings rates,” Acosta said.

“We at Pag-IBIG Fund recognize the aspirations of our fellow Filipinos working overseas of providing a better life and future for their families. That is why we assure our OFW members that the increase in the Pag-IBIG monthly savings rates shall mean better benefits to further help them pursue their dreams.  Under our new rates, members shall have higher Pag-IBIG Savings that earn annual dividends, which they shall receive upon membership maturity or retirement, as well as higher multi-purpose and calamity loan amounts to help them with their financial needs. This shall also allow us to continue offering affordable home loans and provide them better opportunities to gain a home of their own,” Acosta added.

Pag-IBIG gets ECOP support on new contributionrates

by Info @Brand Zone | January 9, 2023

Pag-IBIG Fund gained the support of the Employers’ Confederation of the Philippines (ECOP) on its plan to increase the monthly contribution (savings) rates for both employers and members, the agency’s top executive announced Tuesday (09 January).

With the agency gaining ECOP’s support, Pag-IBIG Fund has now secured both employer and labor groups’ backing as it plans to increase its nearly four-decade old savings rate this year.

“Over the years, Pag-IBIG Fund and ECOP have engaged in productive discourse to help shape responsive policies for the benefit of our stakeholders. We appreciate their recognition of the need for us to finally implement our new rates, after having deferred its implementation since 2021, so that we can increase our members’ benefits, address the growing loan demand of our members, maintain the affordability of our home loans, and ensure the sustainability and growth of Pag-IBIG Fund,” said Pag-IBIG Fund Chief Executive Officer Marilene C. Acosta.

Under Pag-IBIG Fund’s new savings rates, the maximum monthly compensation to be used in computing the required two percent (2%) employee savings and two percent (2%) employer share of Pag-IBIG Fund members shall be increased to ten thousand pesos (P10,000), from the current five thousand pesos (P5,000). As a result, the monthly savings of Pag-IBIG Fund members, for both the employee’s share and the employer’s counterpart, shall increase to two hundred pesos (P200) each from the current one hundred pesos (P100).

In 2019, agency officials approved the increase of its members’ monthly savings rates after obtaining the concurrence of stakeholders to implement a planned increase in 2021. During that time, the agency saw the increase necessary as it projected that the amount of loans disbursed will eventually outpace the total collections from both loan payments and members’ savings. However, recognizing the effects of the pandemic to the economy, requests made by the business community led by ECOP, and the directive of President Ferdinand Marcos, Jr. early last year to provide workers and employers with relief from the continuing effects of the pandemic, Pag-IBIG Fund deferred the implementation of the new rates in years 2021, 2022 and 2023.

“For three consecutive years, Pag-IBIG Fund heeded our request to postpone the

implementation of their new monthly savings rates in view of the difficulties brought by the pandemic. This time around, after having discussed the need for its implementation, we pose no further objection to their plan to push through with it this year,” said ECOP Honorary Chairman and President Sergio Ortiz-Luis, Jr.

“Our support is also a reflection of how we have seen Pag-IBIG Fund properly manage the funds that their members entrust to them. We also understand that the increase in Pag-IBIG’s savings rates means added benefit for their members, as this equates to an increase in their forced savings,” Ortiz-Luis added.

ECOP is one of the largest organizations representing employers in the Philippines. It serves as the umbrella organization for the country’s business community on important national issues on employment, industrial relations, labor issues and related social policies.