The Pag-IBIG Fund on Tuesday announced a 100-percent increase in member contributions starting next month.
Pag-IBIG CEO Marilene Acosta said the new contribution from members will be P200, up from P100. Employers are mandated to match contributions, which means members will be saving P400 a month starting February.
Acosta said the increase in contribution would eventually bring benefits to member workers since it would also increase the loanable amount for short-term loans, increase savings for when they retire and continue to lower interest for housing loans.
She said the Pag-IBIG Fund would raise around P38 billion per year in additional revenue with the increased contributions, which will let it keep interest for housing loans at 6 percent a year.
Meanwhile, overseas Filipino workers’ organizations are supporting Pag-IBIG Fund’s plan to increase members’ monthly savings rate this year, agency said Tuesday.
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.
The OFW groups, in their letters sent to Pag-IBIG Fund, 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-percent employee savings and 2-percent employer share of Pag-IBIG Fund members will 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, will rise to P200 each from P100.
Pag-IBIG Fund chief executive Marilene Acosta expressed her appreciation for the support of the OFW groups and gave assurance that Pag-IBIG Fund members will 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,” she said.
“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 said.