By PIA-Bohol | 08:08 PM March 09, 2025
A little over a year after the contributions to the Home Development Mutual Fund (HDMF) or more popularly known as Pag-ibig Fund, doubled, and about 600 registered employers in Bohol have not implemented the increase yet, according to the local Bohol Pag-ibig Fund.
Pag-ibig Fund Circular No 460 states that the maximum fund salary to be used in computing the employer employee savings was increased from P5,000 to P10,000 per month.
Section C of the same circular further specifies that unless otherwise noted, the contribution rate of all Pag-ibig Fund members, both mandatory or voluntary shall be: for 1,500 and below, employee pays P1% of P10,000 (or P100) while the employer pays 2% of 10,000 (or P200).
And then for those earning over P1,500, the employee pays 2% of P10,000 (or P200) as his personal share while the employer pays 2% of the P10,000 (or P200), for a monthly accumulated savings of P400 for the worker.
That means that the employee savings in the government-run savings and loan program for Filipino workers is doubled tan earlier and the financial assistance he can get for housing and other needs is also doubled.
“Daku ta’g panginahanglan sa savings para pag address sa atong problem sa housing mao nga ang atong Board of Trustees nagimplement sila og increase in contributions: kaniadto, P100 ang personal share, 100 ang employer counterpart,” explains Pag-ibig Fund Bohol Marketing Division Supervisor Leonardo Cirujales.
“But, starting February 2024, 2 percent of every P10,000 na, so kaniadto sa old Pag-ibig law, P5000 ang iyahang Maximum Fund Salary. So, 2% of every P5000, mao nang P100. Giincrease ang atong Maximum Fund Salary to P10,000, mao na nga P200 na,” Cirujales added.
He said as to government workers, Pag-ibig Fund sees no problem, because the DBM issued circular informing all budget officers for compliance, but in the private sector, there are about 600 employers who have not followed the circular yet, Cirujales revealed.
While the failure of the employers to deduct P200 personal share and pay the P200 counterpart could affect the employees savings as his total accumulated value is less with the contributions not totally paid or remitted, his loanable amount, which is 80% of his total accumulated value, is also lesser.
For employers however, the failure to deduct or remit, also means fines and penalties that accumulate over time.
Mohangyo lang gyud pod ta sa mga employers no, nga palihug, one year na man tong circular 460, nga mag-increase ta Feb 2024, nya naa pa baya tay mga employers karon nga wala pa gyud sila nag effect sa increase, sa formal sector, mandatory man gyud na dapat nga iremit sa Pag-ibig Fund, kon wala pa mo magremit, paninglang gyud mo.
And as for employees, when you notice in your pay slip that the deductions are still at P100, remind your employers about the circular and its implementation.
That way, your monthly savings increase and your total accumulated savings when you decide to take back your savings, can also be a huge lump sum, Cirujales said. (RAHC/PIA-7/Bohol)
