Taking into consideration the current situations of both workers and employers and after consultation with both labor and employer groups, Pag-IBIG Fund will not push through with the planned January 2021 increase of its members’ monthly contributions.
Department of Human Settlements and Urban Settlements Secretary Eduardo del Rosario shared that Pag-IBIG Fund Management recommended the deferment of the monthly contribution hike of its members from P100 to P150 in 2021. The said recommendation was eventually approved by the Department and Pag-IBIG Fund’s Board of Trustees.
The said contribution increase, both in members’ and employers’ shares, will be implemented in January 2022.
“We know that many of our members and employers faced financial challenges in the last few months because of the effects brought about by the pandemic to the economy. After consulting with our stakeholders, we will no longer push through with the increase of the members’ monthly contributions next year,” del Rosario said.
He further added that the decision is in line with the efforts of the Duterte administration to alleviate the financial burden of the Filipinos and to help businesses recover, as well.
The contributions’ hike
Since the 1980s, members’ contributions remained unchanged. It was only in 2019 when officials of the state fund approved the increase of the monthly contributions of its members.
Pag-IBIG Fund chief executive officer Acmad Rizaldy Moti said that, at that time, it was projected that the amount of loans disbursed will eventually outpace the total collections from both loan payments and members’ contributions each year.
“So, we proposed to increase the monthly savings by P50 to have enough funds to answer the growing demand and maintain the low rates of our loans. However, with the pandemic reaching our country, the circumstances have changed. Rest assured, our financial position remains strong and that has allowed us to defer the increase in our monthly contributions by a year. What we are focused on right now is providing our members and businesses the assistance they need to cope with the effects of the pandemic,” Moti explains.