The Home Development Mutual Fund or Pag-IBIG Fund is all set to implement the deferred increase in members’ contribution starting January 2024.
To recall, Pag-IBIG postponed the premium hike to next year in consideration of the “continuing effects of the pandemic to both the business community and our members.”
In a chance interview, Pag-IBIG CEO Marilene Acosta said, “Tuloy na (it’s a go).”
“We are just waiting for PBBM’s (President Ferdinand Marcos Jr.)… not his approval because the Board approved it already. We just informed PBBM,” Acosta said, noting that Pag-IBIG Fund sent a memorandum to the President in the last week of November.
The Pag-IBIG Fund chief said so far there has been no opposition from Malacañang concerning the planned members’ contribution hike.
“I think it’s good to go. We just want something in writing. That’s why we sent a memo to the President… [but] he’s aware of our accomplishments and he’s also aware that the last time that contribution rate was set was 1986. It’s long overdue,” Acosta said.
Under Pag-IBIG Fund’s contribution policy, the monthly fund salary (MFS), which is the basis of the 2% contribution rate, is pegged at a maximum of P5,000 a month.
This means the average premium of members is currently capped at P100 per month, with the employer also paying P100 for the member savings fund.
Pag-IBIG Fund was supposed to increase the MFS in 2021, 2022, and 2023 to make the maximum MFS at P10,000 but was deferred to 2024 amid the lingering effects of the pandemic.
The expected premium hike next year will result in a maximum contribution of P200 for the member and another P200 for the employer.
Acosta said the additional contribution “will result in additional collection of around P34 per year [and] it will translate into [more] housing units.”
Pag-IBIG Fund currently has 15.6 million active members.
To address concerns about reduced take-home pay due to the premium hike, Acosta said that contributions to Pag-IBIG Fund are members’ savings, which can benefit them in the form of low-cost housing loans as well as dividends.—AOL, GMA Integrated News