Pag-IBIG defines mandatory coverage under new law
Negros Occidental (22 February) -- To provide employers and workers with a clear guide on the universal coverage of Pag-IBIG Fund under Republic Act 9679 or the Home Development Mutual Fund Law of 2009, which took effect on August 27, 2009 and was implemented beginning this year, the Fund recently issued guidelines on membership and with the key items in the guideline.
Mandatory coverage in the Fund shall include, but are not limited to: a) A private employee, whether permanent, temporary, or provisional who is not over sixty (60) years old; b) A household helper earning at least P1,000.00 a month; c) A Filipino seafarer; d) A self-employed person regardless of trade, business or occupation, with an income of at least P1,000.00 a month and not over sixty (60) years old;
e) 1.1.5. An expatriate who is not more than 60 years old and is compulsorily covered by the Social Security System (SSS), regardless of citizenship, nature and duration of employment, and the manner by which the compensation is paid; f) All employees who are subject to mandatory coverage by the Government Service Insurance System (GSIS), regardless of their status of appointment, including members of the judiciary and constitutional commissions; g) Uniformed members of the Armed Forces of the Philippines, the Bureau of Fire Protection, the Bureau of Jail Management and Penology, and the Philippine National Police; h) Filipinos employed by foreign-based employers, whether they are deployed here or abroad or a combination thereof.
An individual who does not fall in any of the above category who is at least 18 years old but not more than 65 years old may register with the Fund under voluntary membership. However, the said individual shall be required to comply with the set rules and regulations for Pag-IBIG members including the amount of contribution and schedule of payment. In addition, they shall be subjected to the eligibility requirements in the when they avail of loans and other programs/benefits offered by the Fund.
The contribution rate of all members, except for non-working spouses of Pag-IBIG members, shall be as follows:
|Monthly Compensation||Employee||Employer (if any)
|P1,500 and below||1.0%||2.0%
The employer shall act as agent for both the Fund and the employee. He shall collect the membership contributions, as well as the employees' loan amortizations or payments, through payroll deductions and shall indicate the same on the employees' pay slips or issue corresponding receipts for said deductions.
It shall be mandatory and compulsory for the Government, its national and local offices, political subdivisions, branches, agencies or instrumentalities, government-owned and controlled corporations (GOCCs) to provide the payment of contributions in their annual appropriations.
Membership contributions shall be collected and remitted from the time the employee should have been covered by the Fund.
All employers and trade associations/cooperatives with existing agreement with the Fund shall remit the required monthly employer and employee contributions to the Fund or its authorized collecting banks in accordance with the following schedule:
|First Letter of employer's name||Due date
|A to D||10th to the 14th day of the month following the period covered
|E to L||15th to the 19th day of the month following the period covered
|M to Q||20th to the 24th day of the month following the period covered
|R to Z||Numeral 25th to the end of the month following the period covered
The duly accomplished Membership Contribution Remittance Form (MCRF) shall be submitted together with the remittance.
Failure or refusal of the employer to pay or to remit the contributions herein prescribed shall not prejudice the right of the covered employee to the benefits under the Fund. Such employer/trade association/cooperative shall be charged a penalty equivalent to 1/10 of 1% per day of delay of the amount due starting on the first day immediately following the due date until the date of full settlement.
For more details on the guidelines on Pag-IBIG Fund Membership, interested parties may contact Pag-IBIG Fund Bacolod Branch at 435-1129 local 106 care of Mr. Wilmer B. Lirazan or visit the branch at St. Francis Ctr. along Araneta St., Singcang, Bacolod City. borr(Pag-IBIG/PIA/EAD) [top]