Update on Pag-IBIG Fund Mandatory Contributions this 2024
PAG-IBIG FUND – The government agency may implement a raise on the mandatory contributions of members this 2024.
One of the biggest government entities in the Philippines is the Pag-IBIG Fund or also called the Home Development Mutual Fund (HDMF). Millions of Filipinos are members of the said government-run institution.
More popularly called Pag-IBIG, the state institution has been in the service of the Filipino people for decades already. It was created on June 11, 1978 by virtue of the Presidential Decree (PD) No. 1530.
The main purpose that the Fund was created for was for the generation of savings and provision of shelter for the Filipinino workers. Its member populace is composed of people coming from different fields.
The members of the Fund include locally-employed individuals, self-employed individuals, overseas Filipino workers (OFWs), and voluntary members. A membership to the Fund is mandated among government employees and the workers of most companies and businesses in the private sector in the Philippines.
To keep an active and updated account, a Pag-IBIG Fund member must regularly post a monthly contribution or savings. The minimum contribution depends on the minimum rate set by the Fund.
Currently, the Pag-IBIG Fund awaits the approval of Malacañang on the possibility of raising the minimum mandatory contribution of the members. Once approved by the Palace, the minimum mandatory contribution will be raised from Php 100.00 to Php 200.00.
According to the government-owned and controlled corporation (GOCC), the increase on the minimum contribution pave the way for an additional P1 million in the housing loans without an increase on the interest rates.
Fund members with updated accounts may qualify to the loans offered by the government-controlled institution. It is most popular for the Pag-IBIG Housing Loan offer which has helped countless Filipinos in financing the following:
- purchase of vacant lot and residential units
- house construction
- home renovation
- home-loan take-out
- combined loan purposes
Aside from the Housing Loan offer, the Fund also has the Pag-IBIG Multi-Purpose Loan and the Pag-IBIG Calamity Loan offer.