QUEZON CITY (PIA) -- The Pag-IBIG Fund has gained the support of top labor organizations in the country in its plan to increase the nearly four-decade old mandatory savings rate for both members and employers starting January 2024.

The Trade Union Congress of the Philippines (TUCP) and the Federation of Free Workers (FFW), both representatives of the labor force have signified their support to the agency’s proposal since 2019, as it will likewise increase workers’ benefits.

“The TUCP believes that the adjustment in the savings rates will double the amount of members’ maturity claims, as well as other important benefits of Pag-IBIG (Fund) members, such as cash loans, calamity loans and housing loan entitlements. In addition, an adjustment is necessary to restore the lost real value of the P100 minimum contribution which was set all the way back in 1986,” said TUCP President Atty. Raymond Democrito T. Mendoza in a statement.

“We wish to express our support and raise no objections to your plan to increase Pag-IBIG Monthly Contributions by January 2024. With this increase, we recognize that our fellow workers will be entitled to greater savings when their memberships (with Pag-IBIG Fund) mature or upon retirement. We particularly note the equal increase in employers’ counterpart contributions, which will result in more substantial savings for our fellow workers,” followed by FFW National President Atty. Sonny G. Matula.

Meanwhile the largest group of employers in the country, ECOP or the Employers Confederation of the Philippines has also backed the said proposal after the group’s request to postpone the implementation in 2021.

“For three consecutive years, Pag-IBIG Fund heeded our request to postpone the implementation of their new monthly savings rates in view of the difficulties brought by the pandemic. This time around, after having discussed the need for its implementation, we pose no further objection to their plan to push through with it this year,” said ECOP Honorary Chairman and President Sergio Ortiz-Luis Jr.  

Under Pag-IBIG Fund’s new savings rates, the maximum monthly compensation to be used in computing the required two percent employee savings and two percent employer share of 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). (PIA-NCR)