The postponed increase from P100 to P200 in member payments to the Home Development Mutual Fund, also known as the Pag-IBIG Fund, is scheduled to take effect in January 2024.
Pag IBIG Increase Contribution 2024
January 2024 will see the Pag-IBIG Fund begin to receive larger member contributions, a senior official announced on Monday.
Chief Executive Marilene Acosta stated, “Our board accepted the collection of higher membership come January 2024,” at the Victorino’s Restaurant in Quezon City during the Kapihan with Pag-IBIG.
She said that the 2-percent contribution rate would be based on a monthly fund pay, which would rise from P5,000 to P10,000. The employer would contribute the same amount, while the member’s contribution would increase on average from P100 to P200.
- 401k Contribution Limits 2024
- IRS Standard Dеduction 2024
- How to calculatе IRS taxablе incomе?
- Whеn is Tax Sеason 2024?
Important details about the Pag IBIG Increase 2024
The current Pag-IBIG savings policy is based on a member’s monthly fund salary (MFS), which is set at two percent with a P5,000 limit. This was expected to grow to P7,500 in 2021 and to P10,000 this year, but both were postponed.
January 2024 will see the MFS at P10,000 times two percent. Accordingly, the business will match the employee’s savings by an additional P200, according to Acosta. There are 15.58 million active members on Pag-IBIG at the moment.
According to Acosta, the rise in contributions may bring in an extra P30 billion annually. Our ability to lend will decrease if it is postponed once more. Since we use the money we gather to provide homes, Acosta stated.
In order to give employers and even the Department of Budget and Management time to be ready for the new budget requirement, the Pag-IBIG head stated that the organisation has begun notifying companies.
Pag IBIG Contribution Table 2024
It’s important to note that in 2023, the employee and employee share might only total P100. this applies to P5,000 in monthly salary.
But starting in 2024, the Pag IBIG premium increment will result in a maximum contribution of P200 for the member and an additional P200 for the staff. In January 2024, the monthly fund pay is scheduled to reach a maximum of P10,000.
|P1000 To P1500
|More than P1500
What is Pag-IBIG?
The Home Development Mutual Fund (HDMF), also known as Pag-IBIG (Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya, at Gobyerno), is a government financial organization that was founded in 1978 through the consolidation of several voluntary public sector insurance programs.
Its purpose is to offer social security services to its members. Republic Act 9679, also known as the HDMF Law of 2009, enhanced it with the aim of enhancing the members’ quality of life by utilizing provident funds for housing or shelter requirements.
Millions of members worldwide, particularly Filipinos, benefit from its services, which include money savings, loan availability, future security, and wealth accumulation. It is the biggest and most stable financial social security benefits provider in the Philippines.
Pag IBIG Benefits
There are several benefits of being a Pag-IBIG member: ways to access savings and home loan programs when you enrol as a member.
- Members can use the money raised via these initiatives for things like dream house ownership, medical aid, home upgrades, and dependents’ tuition.
- A Housing Loan offering the lowest interest rates ever on loans up to P6 million for eligible members.
- Qualified members can finance home renovation projects, automobile purchases, furniture and appliance purchases, and other goals in life with a Home Equity Appreciation Loan (HEAL), which offers exceptionally low-interest rates on loans based on the net worth of the house.
- Equipped minimum-wage and low-income workers can borrow money under the Affordable Housing Program (AHP) to help them realise their dreams of owning a home.
- Home Saver Programs give Housing Loan members the ability to compound arrears or unpaid monthly amortisations over the course of the loan in order to manage late payments.
- The Multi-Purpose Loan, also known as MPL, is a type of cash loan that is intended to assist members in times of emergency. It allows members to borrow up to 80% of their Pag-IBIG Regular Savings.
Click NCBLPC to Get More Recent Updates.