BAGUIO CITY (PIA) -- Starting this February,  Pag-IBIG Fund members will  have to pay  higher monthly contribution.

Baguio Branch Members Services Officer Bernadette Dulay explained in a radio interview that the increase in monthly contribution is  long overdue since the last contribution rate  adjustment was in 1986.

 “Pag-IBIG Fund was supposed to increase the Monthly Fund Salary (MFS) in 2021, 2022, and 2023 to make the maximum MFS at P10,000 but was put on hold due to the pandemic,” Dulay said.

Pag-IBIG Fund again deferred the implementation of the increase in 2023, in response to the call of President Marcos Jr. early last year to alleviate the financial burden of members due to the prevailing socio-economic challenges brought about the COVID-19 pandemic.

Dulay  explained that under the Pag-IBIG Fund’s contribution policy, the MFS which is the basis of the two percent contribution rate, is set at a maximum of P5,000 per month.

Dulay  explained that under the Pag-IBIG Fund’s contribution policy, the MFS which is the basis of the two percent contribution rate, is set at a maximum of P5,000 per month.

At present,  the average premium of members is currently P100 per month, with the employer also paying P100 for the member’s savings fund.

Starting this February, Dulay  said the MFS will be adjusted to P10,000, doubling the monthly contribution to P200 for the employee,  and P200 for the employer.

Under the new  premium rates, members will also have higher Pag-IBIG savings that earn annual dividends, which the member will receive upon maturity or retirement.

With the increase in contribution, members would benefit from doubled savings and higher cash loan entitlements, and affordable housing loan rates, Dulay emphasized.

Dulay called on payroll officers of private and government institutions to take note of the new contribution rate starting February 2024.  (JDP/MAWC/PIA-CAR)