Pag-IBIG postpones contribution hike

MANILA, Philippines — After consulting with labor and employer groups, Pag-IBIG Fund has decided to defer the January 2021 increase of its members’ monthly contributions. This is in consideration of the plight of both workers and business owners during the pandemic, officials said last Nov. 27.

Secretary Eduardo del Rosario, who heads the Department of Human Settlements and Urban Development and the 11-member Pag-IBIG Fund Board of Trustees, said that they approved the recommendation of the Pag-IBIG Fund management to defer the hike in the monthly contributions of its members – from P100 to P150 in 2021 – and move the implementation by one year, to January 2022. The deferment also applies to the share of their employers.

“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. This is in line with the efforts of the administration of President Duterte to alleviate the financial burden of our fellow Filipinos and help businesses recover,” Del Rosario said.

In 2019, agency officials approved the increase of its members’ monthly contributions, which have remained unchanged since the 1980s.

According to Pag-IBIG Fund chief executive officer Acmad Rizaldy Moti, it was projected at that time thatthe amount of loans disbursed will eventually outpace the total collections from both loan payments and members’ contributions each year.