Pag-IBIG Fund announced the start of higher member’s contribution in January 2024.
“Our board approved the collection of higher contribution come January 2024,” chief executive Marilene Acosta said during the Kapihan with Pag-IBIG at Victorino’s Restaurant in Quezon City.
She said the monthly fund salary—the basis of the 2-percent contribution rate—would increase from P5,000 to P10,000. On the average, the member’s contribution would rise from P100 to P200, with the employer contributing the same.
“It is our board who has the authority to increase the rate of contribution,” Acosta said. The fund’s board of trustees has 11 members chaired by Secretary Jose Rizalino Acuzar of the Department of Human Settlements and Urban Development.
“Now, the contribution rate should be 2 percent. So 2 percent times P10,000, that is P200. The employee is now required to save P200, assuming that the salary is P10,000. If it is P7,500, that would only be P150. That should be matched by the employer with the same [contribution],” she said.
“That is effective January 2024,” Acosta said.
Acosta said the higher contribution rate would allow Pag-IBIG Fund to lend more for the national housing program which aims to build six million housing units across the country.
“It will increase our collection, and we can lend more,” she said.
Acosta said the additional P200 in contribution from the member and the employer would add at least P30 billion to the fund each year. “What we collect we invest into housing because our charter provides that at least 70 percent of whatever investible fund we have should be into housing,” she said.
Acosta said Pag-IBIG Fund is leading the Pambansang Pabahay para sa Pilipino Housing or 4PH program to show other financial companies that it is sustainable.
“If other financing institutions see that it is sustainable, they would follow. We could not absorb it all,” she said.
Pag-IBIG Fund released a record P57.07 billion in home loans in the first half of 2023, an increase of P5.11 billion or 10 percent from P51.96 billion in the same period in 2022.
About 44,414 members availed of housing loan from Pag-IBIG in the same period, including 5,748 from the minimum-wage and low-income sectors.
Pag-IBIG Fund earlier reduced the interest rates on housing loan to 6.25 percent per annum under a 3-year repricing period from the previous 6.375 percent.
Interest rates for the 5, 10, 15, 20, 25 and 30-year repricing periods were reduced to 6.5 percent from 6.625 percent, 7.125 percent from 7.375 percent, 7.75 percent from 8.00 percent, 8.50 percent from 8.625 percent, 9.125 percent from 9.375 percent and 9.75 percent from 10.00 percent, respectively. The new rates came to effect on July 1, 2023.
The agency’s home loan rate under its 1-year repricing period remains at 5.75 percent per annum, while its special interest rate for home loans of minimum-wage earners under its Affordable Housing Program remains at 3 percent per annum, the lowest in the market.
The fund said it was able to reduce its home loan rates because of its strong fiscal standing, record-high collections and high performing loans ratio.