PAG-IBIG Doubles Contribution Rates Starting This Love Month
Not exactly the love we had in mind.
(SPOT.ph) PAG-IBIG Fund is coming in hot for the love month as it is set to increase member contribution rates by 100% starting February.
From P100, members will now have to pay P200 per month, with employers required to match this contribution. This leads to a total monthly saving of P400.
PAG-IBIG’s increase is a strategic move to bolster the fund's capacity to sustain its services, particularly in maintaining low housing loan interests at 6% annually. In addition, the hike in contributions will provide members with higher savings, which will result in larger earnings and better returns upon retirement.
It’s been 38 years since the PAG-IBIG Fund last increased its member contribution rates.
Also read: How to Check Your PAG-IBIG Fund Contributions
PAG-IBIG member contribution rate increases to P200 in February 2024
So why now? The decision to increase contributions was initially approved by the Pag-IBIG Fund’s Board of Trustees in 2019, with the intent of implementing it in 2021. However, the implementation was postponed for two years following the financial strain caused by the COVID-19 pandemic.
The increase is now seen as necessary to sustain the fund’s capacity to provide for the growing demand for home loans and other member benefits. Currently, Pag-IBIG has 15.58 million active members.
According to Pag-IBIG CEO Marilene Acosta, this “long overdue” adjustment will be beneficial for the members in the long run.
“It is 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. Under our new rates, they will have higher Pag-IBIG Savings that earn annual dividends, which they shall receive upon membership maturity or retirement," Acosta said in a press release. “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.”
The move has received support from various stakeholders, including the Trade Union Congress of the Philippines (TUCP), the Federation of Free Workers (FFW), and the Employers’ Confederation of the Philippines (ECOP).
Also read: Now You Know: Pag-IBIG Loyalty Card Benefits and Discounts