DUMAGUETE CITY, Negros Oriental (PIA) -- Maj. Jecery Batiller of the 302nd Infantry Brigade of the Philippine Army has been an active Pag-IBIG Fund member for 18 years. 

He was able to secure a loan six years ago which he used to buy a lot in Consolacion, Cebu, where a two-storey house for his family is now being built. 

When the Pag-IBIG Fund announced the new P400 premium contribution rate which will take effect starting February, Batiller agreed that the move is beneficial for active members. 

“Technically, iyong Pag-IBIG is one of the best financial institutions na pwede nato maduolan kitang mga normal earner lang. Gamay ang iyahang increase tapos ang amount na makuha nimo is sufficient doon sa gusto nimong gastusan like improvement sa balay or house and lot na loan,” Batiller said.

(Technically, Pag-IBIG is one of the best financial institutions that regular wage earners can turn to in times of need. The increase in premium rates is not too high, but the benefit you get is you can loan an amount sufficient enough to cover house improvements or buy a house and lot.) 

Batiller was one of the guests of the Kapihan sa PIA forum where Pag-IBIG Fund officials in Negros Oriental discussed the increase in the agency’s premium contribution rates. 

Jessa Fonollera, a newly-hired staff of a local radio station in the city, said she is looking forward to becoming a member of the Pag-IBIG Fund after learning about the expanded benefits for the members during the Kapihan. 

Fonollera, who is currently processing her Pag-IBIG membership, said she plans to avail of a housing loan so she and her family can move into their own house as they currently live with her parents. 

“Niingon man gud na at least two years na ma-member ka sa Pag-IBIG pwede naka mo-loan og housing. Kung maabot ko og two years aning membership sa Pag-IBIG mo-loan gud ko dayon kay para itukod nako og balay,” she said. 

(I learned that a member can avail of a housing loan once they reach two years. Soon as I’m eligible, I will immediately apply for a Pag-IBIG loan so I can build a house.)

She shared that she is planning to construct a bungalow-type house in another lot in Sibulan which is under the family of his partner.

Advantageous for the members

Pag-IBIG Fund Dumaguete Branch Manager Felix Garan assured members that the increase in their premium contribution rates is advantageous for them. 

Starting February, the employee and employer’s shares in Pag-IBIG premium contributions will be at P200 each. 

The amount is based on 2 percent of the maximum fund salary identified by the agency, which is P10,000.

Garan said the new rate is in response to the public clamor for higher benefits due to the inflation. 

He added that there has been no increase in Pag-IBIG’s premium contribution rate since 1981.

“Pag-IBIG fund will declare dividends every year. Atong charter provides 75 percent of our income will be distributed to the members (as dividends). Kon ang imo contribution modako, dako sab ang imo share sa dividends every year na i-accumulate. Kon naa ta pahinanglan every year or every six months naa tay available window which we call multi-purpose loans, so mo-increase sab imo availment sa imo na loan,” Garan said.

(Pag-IBIG Fund will declare dividends every year. Our charter provides 75 percent of our income to be distributed to the members as dividends. If your contribution increases, your share of dividends will also grow, which accumulates every year. Aside from that, if ever you encounter a financial concern annually or every six months, we have an available window which we call a multi-purpose loan. In turn, you can also avail of higher loans.)

In terms of maturity of savings, Garan explained that with the P200 contribution rate since 1981, a member can only withdraw up to P86,000 worth of savings in 20 years. 

But with the P400 contribution rate, a member can withdraw up to P172,354 worth of savings in 20 years.

A member can only avail of up to P68,000 maximum loan amount with the P200 contribution rate, while with the increased rate, the maximum loan amount is raised to P137,000.

“Dako-dako ang benefits na ma-derive nato sa pag-increase,” said Garan.

(There are many benefits that members can get out of the increase.) 

The increase in the premium contribution rate was set to be implemented in 2019 but it was stalled due to the COVID-19 pandemic. 

There are currently 91,603 Pag-IBIG Fund members in Negros Oriental. 

The Kapihan sa PIA is a weekly multi-sectoral forum and livestreamed over the official Facebook page of PIA Negros Oriental.  (RAL/PIA7 Negros Oriental)