5 Tips to Maximize Your PAG-IBIG Benefits

Contrary to popular belief, OFW life is not easy. Yes, you earn in dollars and yes, you earn more than what you can earn in the Philippines. Still, you are shouldering tons of responsibilities and you have to endure a lot of sacrifices in exchange of a better life and future for your family.

Does “better life and future for the family” includes savings?

Admit it. No matter how hard you try to save, you always end up using the funds because of “emergencies” back home. Thankfully, PAG-IBIG is there to help you by offering a savings with dividends scheme that will make it difficult for you to withdraw money. After all, you are only allowed to claim your contributions after 20 years. This could be helpful because you know that no matter what happens, you have savings to back you up.

In a previous post, we shared about how to be a PAG-IBIG member, including steps for registration, ways to contribute money even while overseas, and how much you can contribute among others. In this post, we will tell you variety of ways on how you can maximize your contributions so you could claim a higher amount when your 20th year as a member comes.

Here’s what you can do:

Tip 1: PAG-IBIG contribution is equal to part of your assets. 

Mindset plays an important role when it comes to financial security. Therefore, don’t think of your contributions as something you have to do because it’s mandatory, rather make it a part of your assets.

Keep in mind that your savings earn dividends every year, which will be added to your total savings. Also, the agency has Modified PAG-IBIG II (MP2) facility wherein members can opt for additional and voluntary savings option for five years, which could be helpful in growing your money.

This leads to tip number 2.

Tip 2: Apply for the MP2 savings facility. 

Apart from the monthly, mandatory contribution of P100, PAG-IBIG also offered the MP2 program wherein you can contribute P500 per month for five years. The good thing about this facility is that you get to earn higher interest rate compared to what was offered in banks’ savings and time deposit facilities.

In case you want to renew for another five years, then you can do so.

Here comes the best part: this savings scheme is tax-free. This means unlike your regular savings account, your savings in MP2 facility will not be charged with 20 percent withholding tax. How cool is that?

Tip No. 3: Keep your contributions up-to-date. 

PAG-IBIG wants to help every Filipino, including OFWs, to have a secured future. In fact, this is the reason why the agency was established. Nonetheless, all of the benefits won’t be possible if you don’t contribute regularly.

Keep in mind that one of the important requirements in claiming your contributions is that you made 240 monthly contributions. Meeting this requirement is crucial, otherwise, you won’t be allowed to withdraw.

Therefore, make sure that your contributions are updated. PAG-IBIG desks are available in Philippine embassies or consulates where you can deposit directly. There are also PAG-IBIG-accredited banks and remittance agencies where you can remit your contribution.

In other words, there is no excuse for you to skip payments.

Tip No. 4: Increase your contribution. 

Yes, you are mandated to contribute P100 every month, but did you know that you can contribute higher than that?

When you contribute more than P100, this means you earn higher dividends, which will be added to your total savings. In case you plan to apply for a PAG-IBIG loan in the future, there is higher chances of approval because of the higher contributions you made.

Tip No. 5: Contribute in lumpsum. 

Being a PAG-IBIG member allows you to enjoy certain benefits and access to various loan facilities. Before you apply, you need to make contributions for at least two years to become eligible for their loan.

You can skip that process by paying in lumpsum the amount of P2,400, or the monetary value of 24-months contribution, upfront. This way, you can get access to PAG-IBIG facilities.

What are you waiting for? Be a PAG-IBIG member now and remember these tips to enjoy higher benefits.

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