Daily TribuneUnder Pag-IBIG Fund’s new savings rates, the maximum monthly compensation to be used in computing the required two percent employee savings and two percent employer share of Pag-IBIG Fund members shall be increased to P10,000, from the current P5,000.
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Pag-IBIG Fund's plan to increase the nearly four-decade-old mandatory monthly savings rate for both members and their employers starting January 2024 has received expressed support from the Trade Union Congress of the Philippines.
In its letter to Pag-IBIG Fund, the TUCP reiterated its position in 2019 supporting the agency's planned increase.
The trade union is one of the country's largest labor organizations and is composed of 27 labor federations representing workers in the private and public sectors, seafarers, overseas Filipino workers and workers from the informal sector.
"The TUCP believes that the adjustment in the savings rates will double the amount of members' maturity claims, as well as other important benefits of Pag-IBIG (Fund) members, such as cash loans, calamity loans and housing loan entitlements. In addition, an adjustment is necessary to restore the lost real value of the P100 minimum contribution which was set all the way back in 1986," said Atty. Raymond Democrito T. Mendoza, who serves as TUCP president and deputy speaker of the House of Representatives.
"The TUCP also recognizes the pivotal role of the Pag-IBIG Fund in ensuring continued access to affordable housing loans. Increasing the rates shall enable the (Pag-IBIG) Fund to sustain its affordable home loan interest rates," Mendoza added.
New savings rates
Under Pag-IBIG Fund's new savings rates, the maximum monthly compensation to be used in computing the required two percent employee savings and two percent employer share of Pag-IBIG Fund members shall be increased to P10,000, from the current P5,000.
