The Philippines’ Home Development Mutual Fund, also known as Pag-IBIG Fund, has announced that it will be suspending the planned increase in monthly contributions from its members and their employers this year.
The contribution rate was set to increase from PHP 100 to PHP 150, but the hike has been deferred for the third time due to the need to provide financial relief to Filipinos recovering from the economic impacts of the COVID-19 pandemic.
Jack Jacinto, department manager for public media affairs at Pag-IBIG Fund, noted that the last hike in contributions was in 1986, and that the strong financial standing of the fund will allow it to still provide benefits and loans to its members without the rate increase.
“Batid natin na patuloy na nag-re-recover ang ating mga miyembro, pati na rin ang ating business community, mula sa epekto ng pandemya at alinsunod na rin sa direktiba ng Pangulong [Ferdinand] Bongbong Marcos Jr. na bigyan ng financial relief ang ating mga kababayan, patuloy nating ipagpapaliban ngayong taong 2023 ang pagtaas ng kontribusyon ng ating mga miyembro at ng kanilang mga employer,” he said in a Laging Handa public briefing.
This decision follows a similar move by the Philippine Health Insurance Corporation, which has postponed the increase in premium rates and income ceilings that was supposed to take effect this year.
