What is Pag-ibig Fund Philippines?

Pag-IBIG Fund is the other name, albeit an easy to remember one, of the Home Development Mutual Fund (HDMF). Pag-IBIG is an acronym which stands for…

Pagtutulungan sa Kinabukasan:
Industriya, at

It is a government-controlled, Philippine corporation that serves as provident and housing fund, pooling together the investments of its members.

Essentially, Pag-IBIG Fund is a synergistic cooperation of its various stakeholders, which include the following:

Ikaw — mostly local employees of the Philippines with conterpart contributions from their employers. Individual paying members (Overseas Filipino Workers, self-employed, dependent members) may also become members of Pag-IBIG Fund.

Bangko — the local banking sector, plus other private financial institutions

Industriya — including the Housing Industry such as real developers, and private employers

Gobyerno — the Philippine Government

Established in June 11, 1978 through Presidential Decree No 1530, the Fund has two very important mandates, namely:

Geration of Savings by pooling together the contributions of its members.

Home Financing by providing housing loans to its members at a low interest and long term payment.

Up to this day, the Pag-IBIG Fund has become the partner of the Filipino in realizing his dream of owning real property at an affordable price. Indeed, it is living up to its name of helping and uniting the four sectors of society, namely: the Filipino people, the financial sector, the industrial sector and the government sector, to achieve the future that they have always wanted by providing homes for Fund members through the creation of an efficient savings system.

Membership Coverage

Republic Act 9679 Sec. 2. Declaration of Policy – It is the policy of the State to establish, develop, promote and integrate a nationwide sound and viable tax exempt mutual provident savings system suitable to the needs of the employed and other earning groups, and to motivate them to better plan and provide for their housing needs by membership in the Home Development Mutual Fund, with mandatory contributory support of the employers in the spirit of social justice and the pursuit of national development.

Mandatory Membership

Employers and employees who should be covered by the SSS and the GSIS;

Uniformed members of the Armed Forces of the Philippines, the Bureau of Fire Protection, Bureau of Jail Management and Penology, and the Philippine National Police;

Filipinos employed by foreign-based employers, whether they are deployed here or abroad or a combination thereof.

Voluntary Membership

Membership to the Fund is also open to individuals 18 to 65 years old, provided they comply with the set rules and regulations for Pag-IBIG members including the amount of contribution and schedule of payment.

This may include the following:

Non-working spouses who devote full time to managing the household and family affairs, unless they also engage in another vocation or employment which is subject to mandatory coverage.

Filipino employees of foreign government or international organization, or their wholly-owned instrumentality based in the Philippines, in the absence of an administrative agreement with the Fund;

Employees of an employer who is granted a waiver or suspension of coverage by the Fund under RA 9679;

Leaders and members of religious groups;

A member separated from employment, local or abroad, or ceased to be self-employed but would like to continue paying his personal contribution. Such member may be a pensioner, investor, or any other individual with passive income or allowances;

Public officials or employees who are not covered by the GSIS such as Barangay Officials, including Barangay Chairmen, Barangay Council Members, Chairmen of the Sangguniang Kabataan, and Barangay Secretaries and Treasurers;

Such other earning individuals or groups as may be determined by the Board by rules and regulations.

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