Pag-IBIG members to gain more benefits under new rates starting February 2024

MANILA, Philippines — Pag-IBIG Fund members are set to enjoy doubled savings and higher cash loan entitlements while continuing to have access to affordable home loans, as the agency is set to increase the nearly four-decade old mandatory monthly savings for both members and their employers starting February 2024, officials announced on January 17.

Under the agency’s new rates, 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 2% employee savings and 2% employer share for Pag-IBIG Fund members, which shall now increase to P10,000 from the current P5,000.

“We at Pag-IBIG Fund have long recognized the need of our members to have higher savings that shall provide them with decent and fair returns upon their retirement, as well as higher cash loans to help them during times of need. 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, we would also be better equipped to finance the growing demand for home loans of our members while maintaining our affordable rates,” said Secretary Jose Rizalino Acuzar, who heads the Department of Human Settlements and Urban Development (DHSUD) and the 11-member Pag-IBIG Fund Board of Trustees.

Pag-IBIG Fund’s new monthly rates were initially approved by its Board of Trustees in 2019, after obtaining the concurrence of stakeholders to implement a scheduled increase in 2021.

During that time, the agency saw the increase necessary as it projected that the amount of loans disbursed will eventually outpace the total collections from both loan payments and members’ savings. However, due to the difficulties brought about by the COVID-19 pandemic in 2021 and 2022, the Pag-IBIG Fund Board deferred the increase of the agency’s savings rates.

The agency again deferred the implementation of the increase in 2023, following the request of the Employers’ Confederation of the Philippines (ECOP) to provide the business