Labor Group Supports Pag-IBIG Contributions Increase
A labor group is supporting the Home Development Mutual Fund, also referred to as the Pag-IBIG Fund, for the long-overdue contribution boost, to guarantee greater benefits for members.
In a letter to Pag-IBIG, the Trade Union Congress of the Philippines (TUCP) expressed its support for the proposal to raise the mandatory monthly savings rate for members beginning this month.
A few years ago, TUCP held this position, but the COVID-19 epidemic caused Pag-IBIG to postpone making that decision.
TUCP is one of the country’s biggest labor organizations and is made up of 27 labor federations that advocate for public and private sector employees, seafarers, overseas Filipino workers (OFWs), and workers in the informal sector.
The TUCP president and House deputy, Democrito Mendoza, stated that in addition to other significant benefits for Pag-IBIG members, the change in savings rates will double the amount of maturity claims from members.
These consist of calamity loans, cash loans, and home loan entitlements.
Mendoza noted, “An adjustment is necessary to restore the lost real value of the ₱100 minimum contribution which was set all the way back in 1986.”
Mendoza also added that the rates increase would allow Pag-IBIG to sustain its low interest home loan.
The increase of rates will raise Pag-IBIG’s resources by ₱34 billion yearly.
This increase will add ₱100 per employee and will be matched by the employer for the same amount.
As of the moment Pag-IBIG has a total of 15.58 million active members.
Pag-IBIG CEO Marilene Acosta mentioned that the monthly savings rate increase would benefit the members as every peso they save would go to their Pag-IBIG savings.
Acosta stated, “Under our new rates, they will have higher Pag-IBIG Savings that earn annual dividends, which they will receive upon membership maturity or retirement.”
Moreover she added, “They will also be entitled to higher multi-purpose and calamity loan amounts to help them with their financial needs.”
Pag-IBIG decided to postpone the contribution increase last year in March as business owners and workers are just recovering from the COVID-19 pandemic.
