Pag-IBIG Fund or Home Development Mutual Fund has announced that it is set to implement an increase in monthly contribution rates for both employees and employers, starting February 2024.

In a press statement published on its official website, PAG-IBIG said the montly contribution would rose to P200.

"Under Pag-IBIG Fund’s new savings rates, the maximum monthly compensation to be used in computing the required two percent (2%) employee savings and two percent (2%) employer share of Pag-IBIG Fund members shall be increased to ten thousand pesos (P10,000), from the current five thousand pesos (P5,000). As a result, the monthly savings of Pag-IBIG Fund members, for both the employee’s share and the employer’s counterpart, shall increase to two hundred pesos (P200) each from the current one hundred pesos (P100)," it said.

Employers’ Confederation of the Philippines (ECOP), one of the largest employers organizations in the country, conveyed its support to PAG-IBIG's plan to impose new contribution rates.

"Our support is also a reflection of how we have seen Pag-IBIG Fund properly manage the funds that their members entrust to them. We also understand that the increase in Pag-IBIG’s savings rates means added benefit for their members, as this equates to an increase in their forced savings,” Ortiz-Luis continued.

Labor organization Federation of Free Workers (FFW) also aired support for PAG-IBIG, underlining that the hike would help workers to reap greater savings upon retirement or when their memberships reached mature status.

"We particularly note the equal increase in employers' counterpart contributions, which will result in more substantial savings for our fellow workers," FFW National President Sonny Matula said in a separate press statement.