The Trade Union Congress of the Philippines (TUCP) expressed its support to Pag-IBIG Fund’s plan to increase the nearly four-decade old mandatory monthly savings rate for both members and their employers starting January 2024.
The TUCP, in its letter to Pag-IBIG Fund, reiterated its position in 2019 supporting the agency’s planned increase. The trade union is one of the country’s largest labor organizations and is composed of 27 labor federations representing workers in the private and public sectors, seafarers, overseas Filipino workers (OFWs) and workers from the informal sector.
It said it “believes that the adjustment in the savings rates will double the amount of members’ maturity claims, as well as other important benefits of Pag-IBIG Fund members, such as cash loans, calamity loans and housing loan entitlements.”
“In addition, an adjustment is necessary to restore the lost real value of the P100 minimum contribution which was set all the way back in 1986,” said Atty. Raymond Democrito Mendoza, who serves as president of the TUCP and as deputy speaker of the House of Representatives.
“The TUCP also recognizes the pivotal role of the Pag-IBIG Fund in ensuring continued access to affordable housing loans. Increasing the rates shall enable the [Pag-IBIG] Fund to sustain its affordable home loan interest rates,” Mendoza said.
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 increase to P200 each from the current P100.
Pag-IBIG Fund chief executive Marilene Acosta expressed her appreciation for the support of the TUCP. She assured the trade union federation and Pag-IBIG Fund members of better benefits as the agency prepares to implement the new rates.
“We thank the TUCP 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. 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,” she said.
“Under our new rates, they will have higher Pag-IBIG savings that earn annual dividends, which they shall receive upon membership maturity or retirement. 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 said.