Filipino citizens are in for a significant boost in their savings and loan privileges as Pag-IBIG Fund, also known as the Home Development Mutual Fund, announces key changes to its programs. Beginning in February 2024, members of Pag-IBIG can anticipate higher monthly savings and increased access to affordable home loans.
This decision to enhance the benefits comes after nearly four decades of unchanged policies. Housing Secretary Jose Rizalino Acuzar shared, “By implementing the new Pag-IBIG Monthly Savings Rates of both members and employers originally scheduled in 2021, not only would we be able to improve the benefits of our members, but we would also be better equipped to finance the growing demand for home loans of our members while maintaining our affordable rates.”
Under the new adjustments, both employees and their employers will see their mandatory monthly savings double, from the current P100 to P200 each. Additionally, the maximum monthly compensation used to calculate the required two percent employee savings and two percent employer share for Pag-IBIG Fund members will increase from P5,000 to P10,000.
Marilene Acosta, the CEO of Pag-IBIG Fund, emphasized that these changes primarily benefit the members. “Every peso they save will go to their Pag-IBIG Savings. Under our new rates, they will have higher Pag-IBIG Savings that earn annual dividends, which they shall receive upon membership maturity or retirement.”
To illustrate the advantages, Acosta provided an example: “Based on our old rates, a member would receive around P87,000 upon reaching membership maturity. On the other hand, a member who saves under our new rates over a period of 20 years would receive P174,000 or double the amount. And, because of their higher savings, they shall also be entitled to higher multi-purpose and calamity loan amounts to help them with their financial needs.”
This move aligns with President Marcos’ call to alleviate the financial burden of Filipinos amid socio-economic challenges brought about by the COVID-19 pandemic.