Metro Manila (CNN Philippines) — Pag-IBIG Fund secured the support of the Federation of Free Workers (FFW), one of the country’s top labor organizations, in its plan to increase the nearly four-decade old mandatory monthly savings rate for both members and their employers starting January 2024, officials stated Monday, Jan. 8.
The FFW, in its letter to Pag-IBIG Fund, cited the agency’s responsible management of the funds entrusted by Filipino workers and its efforts to provide social protection for its members in accordance with its charter.
“We wish to express our support and raise no objections to your plan to increase Pag-IBIG Monthly Contributions by January 2024. With this increase, we recognize that our fellow workers will be entitled to greater savings when their memberships (with Pag-IBIG Fund) mature or upon retirement. We particularly note the equal increase in employers’ counterpart contributions, which will result in more substantial savings for our fellow workers,” said Atty. Sonny G. Matula, FFW National President.
Matula further emphasized that the FFW’s support to Pag-IBIG Fund’ s planned rate increase is contingent with the agency’s commitment to further improve the benefits of its members, and ensure that its growth is directed toward the betterment of workers.
Under Pag-IBIG Fund’s new savings rates, the maximum monthly compensation to be used in computing the required two percent (2%) employee savings and two percent (2%) employer share of Pag-IBIG Fund members shall be increased to ten thousand pesos (₱10,000), from the current five thousand pesos (₱ 5,000). 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 two hundred pesos (₱200) each from the current one hundred pesos (₱100).
Pag-IBIG Fund Chief Executive Officer Marilene C. Acosta, meanwhile, expressed her appreciation for the support of the FFW and gave assurance that Pag-IBIG Fund members shall be entitled to better benefits under the agency’s the new rates.
