MANILA, Philippines, January 19 ------ Filipinos are expected to enjoy double savings and higher cash loan entitlements while having access to affordable home loans, according to the Home Development Mutual Fund or Pag-IBIG Fund. The agency is set to increase the mandatory monthly savings for both members and their employers starting February 2024 after nearly four decades. “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,” Housing Secretary Jose Rizalino Acuzar said.
The monthly savings of Pag-IBIG Fund members for both the employee’s share and the employer’s counterpart shall increase to P200 each from the current P100. This follows the adjustment in the maximum monthly compensation to be used in computing the required two percent employee savings and two percent employer share for Pag-IBIG Fund members, which shall now increase to P10,000 from the current P5,000. “It is also important to note that the increase in our monthly savings rates shall benefit our members the most because 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,” said Pag-IBIG Fund chief executive officer Marilene Acosta. “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,” she added.
President Marcos last year called for the alleviation of the financial burden of Filipinos caused by socio-economic challenges amid the COVID-19 pandemic.
Source: philstar.com
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