RA 9679 mandates all workers membership in Pag-IBIG Fund by January 2010
by Therese C.M. Abejo
Cagayan de Oro City (6 January) -- Beginning January 1, 2010, membership in Pag-IBIG Fund is already required to all employees compulsorily covered by the Social Security System (SSS), regardless of employment status, as provided by Republic Act 9679.
Republic Act 9679, also known as the Home Development Mutual Fund Law of 2009, further obliges previously waived companies to register their employees, upon expiration of their waiver of coverage.
Moreover, Pag-IBIG Fund membership shall also apply to all employees compulsorily covered by the Government Service Insurance System (GSIS), including uniformed personnel of Armed Forces of the Philippines (AFP), Philippine National Police (PNP), Bureau of Jail Management and Penology (BJMP), and Bureau of Fire Protection (BFP).
Foreign-based employers must also register their Filipino employees as required by the law.
The membership of the mandatorily covered employees should take effect upon the date of employment. However, actual membership in the Fund shall commence only upon remittance of the initial contribution and not at point of registration.
To date, the monthly contribution rates shall be as follows: for those with monthly compensation of P1,500.00 or less the employee share is 1% while the employer share is 2%.
For those earning monthly compensation of more than P1,500.00 employee share is 2% and employer share is 2%.
A member may be allowed to contribute more than the required rates should he or she so desires.
The employer, however, shall only be mandated to contribute what is required, unless it agrees to match the member's increased contribution.
The employer assumes a fiduciary relationship with the Fund and the member concerned relative to the collection and remittance of the member's contribution, required employer contribution and loan amortization, when the payment is made through salary deduction.
The employer shall be liable for the non-remittance of MCs and loan obligations as they fall due. A Penalty of three percent (3%) of the amounts payable per month, shall be collected, from the date the contributions and loan amortizations or payment fall due.
An annual dividend of not less than 70% of the Fund's net disposable income is added proportionately to the members' savings. The member's earned dividend will be credited to his or her Total Accumulated Value (TAV). The TAV comprises of the member's personal contributions, employer counterpart and earned dividends.
The benefits of a Pag-IBIG Fund member shall include the following: a) housing; b) short-term loans and other benefit programs; c) portability of membership; d) return of contributions; and e) death benefits.
The termination of Pag-IBIG Fund membership shall be upon the occurrence of any of the following, provided that the member's financial obligations with the Fund are first fully settled, except in case of death of the member: a) membership term maturity; b) death; c) retirement; d) permanent total disability or insanity; e) permanent departure from the country; f) termination of service by reason of health; and g) other causes as may be approved by the Board. (Pag-IBIG Fund) [top]