The Home Development Mutual Fund or Pag-IBIG Fund has announced that it will be doubling the monthly contribution of its members beginning February.
Under the new contribution policy of Pag-IBIG Fund, the 2% monthly contribution rate is now pegged at P5,000 a month.
The average monthly contribution of an employee is pegged at P100 a month and the employer will shoulder another P100.00
Next month, the contribution rate will be P200.00 to be paid by the employee and another P200.00 to be paid by the employer for the monthly fund salary (MFS) of P10,000.
The agency defended that the increase in premium would mean more benefits and higher loan entitlements.
“By implementing the new Pag-IBIG Monthly Savings Rates of both members and employers originally scheduled in 2021, not only would we be able to improve the benefits of our members, we would also be better equipped to finance the growing demand for home loans of our members while maintaining our affordable rates,” said Secretary Jose Rizalino Acuzar of the Department of Human Settlements and Urban Development.
Pag-IBIG Fund Chief Executive Officer Marilene Acosta also said that the increase in contribution will also benefit members.
“Under our new rates, they will have higher Pag-IBIG Savings that earn annual dividends, which they shall receive upon membership maturity or retirement… 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,” said Acosta.
The agency added that the last increase in contribution wqas made in 1986.
The MFS was supposed to increase in 2021, 2022 and 2023 but was suspended due to the impact of the COVID-19 pandemic.
