THE city of Cagayan de Oro is alive with the latest news that the Pag-IBIG Fund has officially raised its minimum monthly contribution.
From February 2024, members are required to contribute P400 each month, a significant increase from the earlier rate of P200. The new contribution will be split equally between the employee and the employer, with each party paying P200.
Floyd V. Zapanta, a branch head at Pag-IBIG, has stated that this move is expected to enhance the savings and dividends of all members. Traditionally, members and their employers contributed P100 each, but following extensive discussions and approvals from relevant agencies, the monthly contribution has now been doubled.
The revised P400 contribution represents 2% of the maximum fund salary, which is P10,000 at present. While P200 is the minimum, members are still free to contribute above this amount if they choose to save more.
According to Zapanta, this increase has been pending for quite some time. The previous rate of P100 had remained unchanged since 1986. The increase was sanctioned by the Office of the President in 2020, but its implementation was postponed due to the pandemic and economic challenges.
Zapanta stresses that the benefits of this increase will be direct and immediate. Higher contributions will translate to increased savings and more substantial dividends for members. Pag-IBIG announces dividends annually, which will be more profitable for members’ savings and are returned in full upon retirement or withdrawal from the fund for other specified reasons.
Moreover, this increase is designed to bolster the housing loan program, allowing Pag-IBIG to maintain or even lower its already competitive interest rates.
Pag-IBIG’s scope extends beyond just one city—it is a nationwide initiative. As mandated by Republic Act 9679, all legally employed Filipinos earning a minimum of P1,000 per month are obliged to contribute to the Pag-IBIG fund.
Zapanta makes it clear that this requirement applies to all income earners, whether their employment is permanent, regular, or of other nature. As long as an individual’s monthly income meets the P1,000 threshold, both the individual and their employer are legally bound to register, collect, and remit the monthly savings to the Pag-IBIG Fund.
This mandate also includes self-employed individuals and overseas Filipino workers (OFWs), who must also meet the minimum contribution of P400.
Pag-IBIG operates under RA9679, functioning as a fund for workers while carrying the dual mandate of promoting savings and providing housing loans.
Now that February 2024 has arrived, members are encouraged to adapt to these changes and look forward to the ensuing benefits.(With a report from JMOR/PIA-10)
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