So far, the Home Development Mutual Fund or Pag-IBIG Fund has yet to hear any opposition regarding the scheduled contribution rate hike on February.
Atty. Karin-Lei Franco-Garcia, vice-president of Pag-IBIG Public Relations and Information Services Group, said on Saturday, January 20, that Malacanang already gave the green light for the contribution rate increase.
"Nakipag-meeting kami sa ilang representatives ng Malacanang. It is a go," Franco-Garcia said during DZRH's Special on Saturday.
Franco-Garcia said that the contribution-hike also garnered support from various groups, including the Employers Confederation of the Philippines, Philippine Government Employees' Association, and the Trade Union Congress of the Philippines.
The Pag-IBIG official shared that the board approved the increase in 2019 but decided to defer the implementation due to the 2019 Coronavirus Disease (COVID-19) pandemic.
"After consulting with the stakeholders, nag-defer kami nung 2020, nag-defer nung 2021, nag-defer nung 2022, nag-defer nung 2023. Ngayong 2024, itutuloy na ang pagtaas ng contributions," Franco-Garcia explained.
Franco-Garcia stressed that the contribution hike will allow Pag-IBIG to maintain low housing loan interest rates, and increase the benefits of the members.
"Dati kapag after 20 years, or pagka-retire niyo, ang makukuha ninyo sa Pag-IBIG na lump sum ay Php 86,000. Ngayon dahil sa increase, magiging Php 172,000 na," Franco-Garcia said.
"Yung mauutang niyo na cash loan sa Pag-IBIG, after five years, dati ay Php 11,000 lang. Ngayon ay magiging Php 22,000 na," she added.
If the Pag-IBIG Fund does not implement the contribution rate hike, Franco-Garcia warned that the fund will need to borrow money from other institutions.
Franco-Garcia also mentioned that the last rate hike of the Pag-IBIG Fund happened in 1986, almost 40 years ago.
"Kapag hindi tayo mag-increase at dumami pa rin ang housing loans, ibig sabihin uutang ang Pag-IBIG Fund para mapautang kayo. Kapag umutang ang Pag-IBIG Fund, hindi rin iyon libre. Ibig sabihin tataas ang housing loan interest rate," Franco-Garcia explained.
Under the new rates, the monthly contributions of both employees and employers will increase from Php 100 to Php 200.
