TUCP is ‘open’ to higher Pag-IBIG contribution rate of P600 from P200 in five yrs

Labor group Trade Union Congress of the Philippines (TUCP) is supporting a the possible rate adjustment in the monthly contributions Home Development Mutual Fund (Pag-IBIG) members, in the face of a projected funding gap in the next few years.

“The TUCP is open to the plan to adjust the maximum salary cap from the present P5,000 to P15,000, which will translate to a monthly savings rate of P300 for the employee and P300 for the employer,” TUCP spokesperson Alan Tanjusay said in a press conference.

He said that the current lowest monthly contribution rate or savings rate in Pag-IBIG is P200, or P100 at a 50:50 contribution sharing by the employer and the employee.

This means that the salary cap of P15,000 will translate to a P600 contribution rate or P300 each from the employee and the employer.

Tanjusay, however, emphasized that the adjustment must be made in three equal tranches in a span of three to five years.

“This will cushion the workers and employers from effects of additional deductions of other social security agencies,” he said.

Tanjusay noted that Pag-IBIG chief executive officer Acmad Rizaldy Moti informed the TUCP of the plan which aims to sustain the fund’s life.

“CEO Moti also explained to us the steady growth in availment of housing loans in the last five years starting from P40 billion in 2012 to P75 billion last year. It was pointed out that if the availment rate maintains its 15% yearly trajectory, the Fund may experience a funding gap by 2024 or earlier,” Tanjusay said.

Many workers are taking out multi-purpose loans from Pag-IBIG amid skyrocketing prices of basic goods in the market. “Tumaas po ang demand, kailangan po ng mga manggagawa ang extra cash sa panahon na ito dahil tumataas po ang presyo ng mga bilihin, ang halaga ng mga serbisyo. Kailangan ho nila ng additional cash on hand,” Tanjusay said.

Pag-IBIG has revealed an all-time high disbursement of cash loans totaling P25.57 billion in the first half of 2019.

Tanjusay said that TUCP will be coordinating with different employers’ groups to ensure their cooperation for the planned contribution adjustments. —VDS, GMA News