Pag-IBIG Fund (“Fund”) Chief Executive Officer Acmad Rizaldy P. Moti sent a letter to ECOP dated 11 September 2019 seeking our support on the plan to increase the Pag-IBIG Fund contribution (savings) of its members and the corresponding share of their employers. The proposal was to increase the maximum fund salary from five thousand pesos (PHP 5,000) to ten thousand pesos (PHP10,000) from 2021. This proposed adjustment will double the contribution of the member and the counterpart from the employer to two hundred pesos (PHP200) each.

In response, ECOP, through its President Sergio Ortiz-Luis Jr., sent a letter to Pag-IBIG dated 25 September 2019 and manifested its support to increase the maximum fund salary. However, ECOP was amenable to support an increase in the employer’s counterpart contribution only by fifty pesos (PHP50.00) for a total of one hundred fifty pesos (PHP150.00) from 2021 and see how the situation shall unfold when the fund is strengthened to cover the growing demand for home loans. ECOP  recommended that a review could be undertaken to find out whether the remaining proposed adjustment of another fifty pesos (P50.00) increase beginning 2023 is still warranted granting that a more aggressive collection of delinquent contributions and unpaid loans may already be sufficient to sustain the fund’s home lending program.

The support of ECOP was based on the prudent management of resources of the Pag-IBIG, of which it is able to maintain low interest rates for home lending and at the same time steadily grow the fund over the years and allow its members to loan as much as 80% of their total savings at the lowest interest rates in the market based on a very liberal repayment period. In addition, ECOP opined that it’s about time to impose such increase considering that the current mandatory contribution rate was set 33 years ago. ECOP understood the need to increase the maximum fund salary to address the gap between loan releases and collection.

On 6 November 2019, the Pag-IBIG Fund Board of Trustees, during its Regular Meeting, unanimously approved the increase in the maximum monthly compensation to be used in computing the required two percent (2%) employee contributions (savings) and two percent (2%) employer share of its members.

The approved maximum monthly compensation shall be increased from the current five thousand pesos (PHP5,000) – a rate that was set over three decades ago on 01 August 1986 – to seven thousand five hundred pesos (PHP7,500), effective 01 January 2021 and to ten thousand pesos (PHP10,000.00), effective 01 January 2023.

As a result, the required monthly contributions (savings) of Pag-IBIG Fund members and the corresponding employer counterpart share shall be increased from the current one hundred pesos (PHP100.00) to one hundred fifty pesos (PHP150.00), effective 01 January 2021, and to two hundred pesos (P200.00), effective 01 January 2023.

To illustrate, please refer to the table below:

Particulars Effective Dates
01 August 1986 to 31 December 2020 [Maximum Monthly Compensation @PHP5,000] 01 January 2021 to 31 December 2022 [Maximum Monthly Compensation @PHP7,500] 01 January 2023 onwards [Maximum Monthly Compensation @PHP10,000]
Employee Share in Pag-IBIG Fund Contributions (Savings) PHP100.00 PHP150.00 PHP200.00
Employer/Government Counterpart Share in Pag-IBIG Fund Contributions (Savings) PHP100.00 PHP150.00 PHP200.00
Total Pag-IBIG Fund Contributions (Savings) PHP200.00 PHP300.00 PHP400.00





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