On June 11, 1978 and by virtue of Presidential Decree No. 1530, Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya, at Gobyerno or PAG-IBIG Fund was established.
Presently known as Home Development Mutual Fund, the purpose of this government agency is to provide national savings program and affordable shelter financing for Filipino workers with the help of these four sectors.
Back in the day and due to certain events in history, being a PAG-IBIG member was voluntary. In 1994, then President Ramos declared the membership mandatory through Republic Act 7742.
In 2009, then President Arroyo signed into law R.A. 9679 or the Home Development Mutual Fund Law, which made PAG-IBIG membership mandatory for all Filipinos, including those who are overseas Filipino workers like you.
Keep reading to know more about your PAG-IBIG membership, including how to register, how to make payments while overseas, and the benefits you can get from being a member.
On mandatory membership –
- Filipino seafarer upon signing of the standard contract of employment between seafarer and manning agency.
- Filipinos employed by foreign-based employers, whether deployed in the Philippines or overseas, or combination.
On membership registration –
There are several ways you can register as a PAG-IBIG member. You can submit your Membership Registration Form (MRF) together with valid ID in:
- In case you’re overseas, in PAG-IBIG desks located in Philippine Embassy or Consulate
- Pag-IBIG Fund International Operations Group, 6th Floor, Justine Bldg., Gil Puyat Avenue, Makati City
- Any PAG-IBIG branch nationwide
- PAG-IBIG satellite office in the Philippine Overseas Employment Agency (POEA)
- Accredited banks and remittance centers like Metrobank, PNB, and iRemit Global Remittances, Inc.
You can also get a copy of the MRF here.
You can also register online through PAG-IBIG website.
On membership contribution –
Filipinos working overseas and whose employer is not subject to mandatory coverage shall contribute two percent of his/her monthly compensation. The Filipino worker may also opt to pay for the employer’s counterpart of two percent.
Take note that the maximum monthly compensation to be used in computing membership savings shall not be more than P5,000.00
As of this writing, the standard contribution is at P100. You may opt for higher contribution so you could get higher savings.
On duration of PAG-IBIG membership –
Membership shall be maximum of 20 years with total of 240 monthly membership savings or upon the occurrence of any of the following:
- Permanent Total Disability or Insanity
- Termination of service due to health reasons
- Permanent departure from the country
- Other reasons provided for by the Board of Trustees
You also have the option to withdraw after 15 years of contribution, provided at least 180 monthly membership contributions were made and there is no existing PAG-IBIG loan.
On paying for monthly contribution –
The good news is you can pay your monthly contribution anywhere you are. PAG-IBIG has representatives based in the Philippine Embassy or Consulate where you can pay to them directly. There are also PAG-IBIG-accredited banks and remittance partners where you can pay your contributions.
You can check this link for a complete list of accredited banks and remittance partners of PAG-IBIG around the world.
Take note that when paying for your monthly contribution, prepare your PAG-IBIG membership ID number (PAG-IBIG MID) since this will be used to track the payments you made. In case you don’t have PAG-IBIG MID yet, you can now register so you will be given Registration Tracking Number (RTN) in the meantime.
On benefits of being a PAG-IBIG member –
- Tax-free savings, guaranteed by the government.
- Savings are earning yearly dividends, which will be added to your savings.
- Access to short-term loans like Multi-Purpose Loan and Calamity Loan, which you can use to, say, pay your child’s tuition fee, minor repairs at home, or starting capital for your business.
- Access to Housing Loan wherein the funds can be used to buy your dream house, home renovation and improvement, or refinance existing housing loan from other lending institutions.
What are you waiting for? Become a PAG-IBIG member now to not only enjoy the benefits mentioned but also to earn higher savings.