What is Pag-IBIG?
Originally established in 1978, the Home Development Mutual Fund or Pag-IBIG fund is the government’s solution to providing Filipinos with a national savings program and affordable housing loans. As of 2010, the government has made membership in Pag-IBIG a requirement for the following individuals:
● All employees, workers, professionals, officers, and companies who are compulsorily covered by the SSS and GSIS
● Uniformed members of the Armed Forces of the Philippines, the Bureau of Fire Protection, the Bureau of Jail Management and Penology, and the Philippine National Police
● All members of the judiciary and constitutional commissions
● Overseas Filipino Workers (OFWs)
● Filipinos employed by foreign-based employers, whether deployed locally or abroad
By being a Pag-IBIG member, you are expected to contribute a minimum of P100 to the fund. If you are locally employed, P100 will automatically be remitted to Pag-IBIG by your employer. However, if you are self-employed or an OFW, you must apply for membership manually online or at any Pag-IBIG branch.
Additionally, it is also possible to contribute more than P100! The more money you contribute, the higher dividends you’ll earn. Pag-IBIG distributes 70% of its net income to members as dividends.