MANILA, Philippines: Millions of Pag-IBIG Fund members will enjoy higher benefits from savings to cash and home loans with the agency's plan to raise the nearly four-decade old mandatory monthly savings for both members and their employers starting February 2024.

"We at Pag-IBIG Fund have long recognized the need of our members to have higher savings that shall provide them with decent and fair returns upon their retirement, as well as higher cash loans to help them during times of need," the agency said in a statement. Expressing her appreciation for the support of stakeholders in its plan to increase the monthly contribution rate, Pag-IBIG Fund Chief Executive Officer Marilene Acosta assured members of better benefits under the agency's new rates.

Under the new rates, members will have higher Pag-IBIG savings that earn annual dividends which they shall receive upon membership maturity or retirement, Acosta said.

For example, based on its old rates, a member would receive around P87,000 upon reaching membership maturity. On one hand, a member who saves under our new rates over a period of 20 years would receive P174,000 or double the amount. "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," Acosta said.

The Pag-IBIG Fund chief said they were gratified by the support thrown by the Trade Union Congress of the Philippines (TUCP), Federation of Free Workers (FFW), Philippine Government Employees' Association (PGEA), Overseas Filipino Workers' (OFW) organizations and ECOP in its plans to raise the contribution rates. "Pag-IBIG also appreciates them for recognizing that raising our monthly savings rates will allow us to continue to provide affordable home loans to its members in the coming years," Acosta said.

Starting next month, the monthly savings of Pag-IBIG Fund members for both the employee's share and the employer's counterpart shall increase to P200 each from the current one P100.This follows the adjustment in the maximum monthly compensation to be used in computing the required two percent employee savings and two percent employer share for Pag-IBIG Fund members, which shall now increase to P10,000 from the current P5,000.

Department of Human Settlements and Urban Development (DHSUD) Secretary Jose Rizalino Acuzar said that with the new monthly savings rates of both members and employers, it (DHSUD) would now be better equipped to finance the growing demand for home loans of members while maintaining affordable rates.

"All these are in line with the call of President Ferdinand Marcos Jr. to provide Filipino workers with opportunities to gain comfortable and productive lives," said Acuzar, who also heads the 11-member Pag-IBIG Fund Board of Trustees. Approved by the Board of Trustees in 2019, the new monthly saving rates were supposed to have been implemented in 2021. Pag-IBIG said.

But the agency decided to defer its implementation in the wake of the Covid-19 pandemic particularly in 2021 and 2022. Pag-IBIG was ready to implement the contribution hike in 2023 but it gave in to the request of the Employers' Confederation of the Philippines (ECOP) to provide the business community with time to further recover from the continuing financial challenges due to the health crisis. The deferment was also the Pag-IBIG Fund's response to the call of the Chief Executive early last year to alleviate the financial burden of Filipinos due to the prevailing socio-economic challenges brought about by the Covid-19 pandemic.