MANILA, PHILIPPINES – The Pag-IBIG Fund has announced a 100-percent increase in member contributions starting in February 2024.
In a telephone interview with the Pag-IBIG Fund on Tuesday, January 16, it was stated that the monthly contributions from both employees and employers would be raised to P200, doubling the previous minimum amount of P100. Employers are required to match these contributions, resulting in members saving P400 per month.
Acosta mentioned that the rise in contributions would ultimately yield advantages for member workers. These include an increase in the amount available for short-term loans, enhanced savings for retirement, and a continued reduction in interest rates for housing loans.
Acosta stated that the Pag-IBIG Fund anticipates generating approximately P38 billion in additional annual revenue through the increased contributions. This increase would enable the organization to maintain a 6 percent annual interest rate for housing loans.
Pag-IBIG explained that the adjustment was implemented to “address the needs of its members” and would be reflected in the benefits provided to the members.
“The reason for the increase is to sustain the needs of Pag-IBIG members. So, the regular contributions that are increasing will still benefit the Pag-IBIG members,” the Agency said.
“If a Pag-IBIG member has a lot of savings, they will also earn a lot. So, it will still return to the Pag-IBIG members,” they added.
On another note, spokesperson Rey Balena from the state insurer Philippine Health Insurance Corp. (PhilHealth) mentioned that the increased contributions from its members would result in improved benefits.
He specified that benefits have already been increased for individuals dealing with colorectal cancer, ischemic and hemorrhagic strokes, and high-risk pneumonia.
Additionally, upcoming enhancements in benefits are expected for those affected by dengue hemorrhagic fever, chemotherapy, bronchial asthma, and bacterial sepsis in newborns.
Also Read: PhilHealth contribution increases to 5%