CONTRIBUTION RATE HIKE. Several members of Pag-IBIG Fund in Baguio City aired their support for the planned increase in the Maximum Fund Salary (MFS) that will take effect in February 2024. The workers said they know that the contribution hike will be returned to them through savings that they can benefit from in the future. (PNA file photo)
BAGUIO CITY – Several Pag-IBIG Fund members expressed optimism on the benefits of the planned increase in the monthly contributions starting February this year, noting its long-term impact.
“I favor that because that’s a forced savings, it’ll be returned to us in due time. That is why I also availed of the (Modified) Pag-IBIG II savings,” Rose Malekchan, a private sector employee told the Philippine News Agency on Monday.
She added that once an employee retires the money saved with Pag-IBIG will form part of his retirement money.
Jonalyn Ponciano, a staff of a government agency based in Baguio, said the contribution hike will greatly benefit the workers.
“If ever you’ll apply for a loan or once you retire, you will get a bigger amount,” she said.
This is the same thought of Marie Cruz, also a government employee in one of the national line agencies in the Cordillera. “You won’t notice it because the increase is only PHP100. This will form part of our additional savings,” she said.
Aileen Refuerzo, a Baguio City government employee said the contribution hike “is okay as long as it translates to more benefits for members.”
Nora Cruz, a restaurant cashier, said the increase “serves as my savings and which will increase what I will get when I retire.”
“As long as it is not marred with corruption issues, saving money with Pag-IBIG Fund is a good practice because it is for the future of the member who is sure to have savings while working,” she said in Filipino.
Brigitte Badando, a food server in a restaurant along Session Road here, said bigger contribution means bigger savings. “That will greatly work for us,” she said.
Aida Pagtan, an employee of the Department of Agriculture in the Cordillera, said she supports the increase “because it means your savings are intact.”
“I also have my other savings, which is locked-in for five years,” she said in Ilocano, referring to the Modified Pag-IBIG Savings or MP2.
Jamie Malingan, also a government employee, said the contribution hike is okay, noting that it was supposed to be implemented last year. “That’s okay with me because I could have more benefits from Pag-IBIG if ever,” she said.
Hanna Lacsamana, a private media practitioner in the Cordillera, said the contribution hike was delayed because of the pandemic.
“I support the increase in contribution but I hope that it will still be delayed because minimum wage earners are facing difficulties with their finances and they could hardly cope with the high cost of living due to inflation, the wage increase last year is not enough,” she said in Filipino, noting also the impact of the possible increase in Philhealth contribution.
Pag-IBIG Chief Executive Officer Marlene C. Acosta, in Circular 460 signed on January 15, 2024, said the increase in Maximum Fund Salary (MFS) this year was approved by the agency’s Board of Trustees during its meeting in February 2023 and shall take effect in February this year.
Whether a member pays under mandatory or voluntary coverage, the contribution rate for those with a fund salary of PHP1,500 and below is 1 percent while share of the employer (if there is any) is 2 percent.
For those with fund salary of over PHP1,500, the contribution rate of the member is 2 percent while it is 2 percent for the employer, if applicable. (PNA)
