Pag-IBIG Fund has secured the support of the Federation of Free Workers (FFW), one of the country’s top labor organizations, in its plan to increase the nearly four-decade old mandatory monthly savings rate for both members and their employers starting this month, officials said.
The FFW, in its letter to Pag-IBIG Fund, cited the agency’s responsible management of the funds entrusted by Filipino workers and its efforts to provide social protection for its members in accordance with its charter.
“We wish to express our support and raise no objections to your plan to increase Pag-IBIG Monthly Contributions by January 2024. With this increase, we recognize that our fellow workers will be entitled to greater savings when their memberships (with Pag-IBIG Fund) mature or upon retirement,” said lawyer Sonny G. Matula, FFW National President.
“We particularly note the equal increase in employers’ counterpartcontributions, which will result in more substantial savings for our fellow workers,” he said.
Matula emphasized that the FFW’s support to Pag-IBIG Fund’s planned rate increase is contingent with the agency’s commitment to furtherimprove the benefits of its members and ensure that its growth is directed toward the betterment of workers.
Under Pag-IBIG Fund’s new savings rates, the maximum monthly compensation to be used in computing the required two percent employee savings and two percent 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 FFW and gave assurance that Pag-IBIG Fund members shall be entitled to better benefits under the agency’s new rates.
“We thank the Federation of Free Workers for supporting our plan and sharing our efforts in advancing the welfare of Filipino workers. We assure the FFW, our members and our stakeholders that the increase in our monthly savings rates shall redound to the benefit of our members,” Acosta said.
“The increase in our monthly savings rates mean that our members shall have higher Pag-IBIG Savings that earn annual dividends, which theyshall receive upon membership maturity or retirement. And, because of their higher savings, they shall also be entitled to highermulti-purpose and calamity loan amounts to help them with their financial needs,” she added.
“On an equally important note, our new rates shall allow us to continue providing affordable home loans to our members in the coming years,” Acosta said.