Pag-IBIG to double member contributions in February 2024 to P200 per month
The Home Development Mutual Fund or the Pag-IBIG Fund has announced that it will double its monthly contribution rates for both employers and members starting in February this year.
According to Circular No. 460 posted on the official website of Pag-IBIG, the maximum fund salary to be used in computing the employee and employer savings has been increased from P5,000 to P10,000.
With the required 2% of the employee savings and employer share, this means that members will now have to contribute P200 monthly from the minimum of P100.
In a report by ABS-CBN, Pag-IBIG CEO Marilene Acosta said that the increase serves to benefit members as it will raise the loanable amount for short-term loans and their savings for when they retire, as well as lower interest for housing loans.
With the hike in contributions, it is projected that Pag-IBIG would raise around P38 billion per year in additional revenue.
As per the Philippine Information Agency, the Employers’ Confederation of the Philippines (ECOP) said that they are in favor with the move.
"For three consecutive years, Pag-IBIG Fund heeded our request to postpone the implementation of their new monthly savings rates in view of the difficulties brought by the pandemic. This time around, after having discussed the need for its implementation, we pose no further objection to their plan to push through with it this year," said ECOP Honorary Chairman and President Sergio Ortiz-Luis, Jr.
