After consultations with labor and employer groups, the board of the state owned Home Development Mutual Fund (PAGIBIG) has approved the member contribution increase, the first since 1986.
From the current P100 per month per member, the contribution will increase to P150 in January 2021 and will further go up to P200 in 2023.
With the contribution hike, PAGIBIG Chief Executive Officer Acmad Moti said there is no need for the agency to borrow funds in order to cover the growing loan needs of members.
PAGIBIG Fund is also studying the possibility of raising the loanable amount for housing loans.
But for labor groups like the Trade Union Congress of the Philippines (TUCP), the initial hike of P50 in the monthly contribution is not enough.
The group considers the PAGIBIG contribution as retirement savings of workers.
In 2021, each member will remit 3,600-pesos annually from the current 2,400-pesos.
In 2023, it will further increase to 4,800-pesos which will also be matched by the employers’ counterpart. (Jasper Camilo)