Pag-IBIG Fund gained the support of the Employers’ Confederation of the Philippines (ECOP) on its plan to increase the monthly contribution (savings) rates for both employers and members, the agency’s top executive announced Jan. 9.
With the agency gaining ECOP’s support, Pag-IBIG Fund has now secured both employer and labor groups’ backing as it plans to increase its nearly four-decade old savings rate this year.
“Over the years, Pag-IBIG Fund and ECOP have engaged in productive discourse to help shape responsive policies for the benefit of our stakeholders. We appreciate their recognition of the need for us to finally implement our new rates, after having deferred its implementation since 2021, so that we can increase our members’ benefits, address the growing loan demand of our members, maintain the affordability of our home loans, and ensure the sustainability and growth of Pag-IBIG Fund,” said Pag-IBIG Fund chief executive officer Marilene Acosta in a statement.
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 Pag-IBIG Fund members shall be increased to P10,000, from the current 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 P200 each, from the current P100.
In 2019, agency officials approved the increase of its members’ monthly savings rates after obtaining the concurrence of stakeholders to implement a planned hike in 2021. During that time, the agency saw the increase necessary as it projected that the amount of loans disbursed will eventually outpace the total collections from both loan payments and members’ savings.
However, recognizing the effects of the COVID-19 pandemic to the economy, requests made by the business community, led by ECOP, and the directive of President Ferdinand Marcos Jr. early last year to provide workers and employers with relief from the continuing effects of the pandemic, Pag-IBIG Fund deferred the implementation of the new rates in years 2021, 2022, and 2023.
“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.
“Our support is also a reflection of how we have seen Pag-IBIG Fund properly manage the funds that their members entrust to them. We also understand that the increase in Pag-IBIG’s savings rates means added benefit for their members, as this equates to an increase in their forced savings,” Ortiz-Luis added.
ECOP is one of the largest organizations representing employers in the Philippines. It serves as the umbrella organization for the country’s business community on important national issues on employment, industrial relations, labor issues, and related social policies. ||
