Pagibig Fund to increase contributions, expand membership in 2010
by Lito Dar
Baguio City (17 October) -- Pagibig Fund is now covered by a new law, Republic Act 9679 or the Home Development Mutual Fund Law of 2009, which was signed by President Gloria Macapagal Arroyo last July 21, 2009.
According to PAGIBIG Fund-Baguio branch Provident Benefits and Marketing & Enforcement Division head Philip Raymund Salem, under the said aw, the PAGIBIG Fund Board of Trustees now has the power to decide or to give new rate of member contributions. Thus starting January 2010, members monthly contributions will be increased from the present P100 to P300 for those whose salary is P15,000 and above.
Salem explained that what is increased is maximum salary used for computations from P10,000 to P15,000. Employees with monthly salary of P15,000 and above are mandated to pay P300, while the contribution of those with below P15,000 will be will be equal to 2% of s their basic salary.
Salem pointed out that the increased in monthly contributions is necessary to meet the growing demand or needs of its members. As an example, Salem cited that, from January to July this year, in short term loan services alone, PagIbig released an average of P144 Million daily to 8,000 members, on housing loan, an average of P600 Million daily released to about 300 applicants.
This year, they expect to release about P55Billion in Housing loans and P40Billion in short term loans. They expect this to increase to P60B and 45B, respectively next year.
"Increase in contributions is also advantageous to members, as their contributions would also increase and likewise, it will also result into an increase on services and loans that they can avail," Salem said.
He is also encouraging members to increase their individual contributions as this will be beneficial to them, especially in time of needs.
Under RA 9679, PAGIBIG Fund membership will now extend to almost Filipino workers. Social Security Services members, Overseas Filipino Workers employed by foreign based companies, and even household helps, will be mandatory members of PAGIBIG Fund starting January 2010.
Relative to the mandatory memberships of SSS members to PAGIBIG Fund, Salem is encouraging all private employers to visit their office as early as now, to register their employees to avoid encountering problems once the said law is implemented.
PAGIBIG Fund also encourages voluntary membership.
At present, PAGIBIG Fund has P7.4 million members and with RA 9679, it expects its membership to reach nine million by next year. (PIA) [top]