Philippine Housing Benefits Through Pag-IBIG Fund

"Pag-IBIG Fund Law is a Philippine housing benefit provided by the government, wherein its members enjoy adequate housing through efficient savings plan."

Pag-IBIG Fund Law (contraction for Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industria at Gobyerno), otherwise known as the Presidential Decree No. 1752, as amended, or the Home Development Mutual Fund Law of 1980, is a Philippine housing benefit provided by the government, wherein its members enjoy adequate housing through efficient savings plan.


The Pag-IBIG Fund Law exists with several objectives:

1. To provide affordable housing benefits and low-cost house and lot packages/condominium units either for rent or for sale to low income Pag-IBIG members who cannot afford the housing packages available in the market.
   
2. To enable Pag-IBIG Fund to perform its mandate by using its funds to provide decent and affordable condominium units as well as house and lot packages for sale to eligible Pag-IBIG Fund members nationwide.
   
3. To stimulate competition that will bring about better housing packages in terms of price and development that will redound to the benefit not only of Pag-IBIG Fund members but also of the public in general.
   
4. To help solve the housing backlog by generating further demand for housing through the provision of affordable condominium units and house and lot packages.
   
5. To equitably distribute nationwide economic opportunities generated from housing production, and in the process, stimulate stability brought about by economic development.
   
6. To provide an opportunity for Local Government Units (LGUs) to comply with R.A. 7279 by identifying and providing land for socialized housing.
   
7. To simplify and facilitate the processing of end-user financing for eligible Pag-IBIG Fund members, given that the projects are owned by Pag-IBIG Fund.
   
8. To develop further sense of ownership, pride and confidence among members of the Fund, knowing fully well that the projects being constructed are direct investments made from their savings with the institution.
   
9. To generate more membership to Pag-IBIG housing benefits.
   
10. To develop and dispose acquired properties of the Fund.

Fund coverage of the Pag-IBIG housing benefit will be mandatory to all employees covered by the Social Security System (SSS) and the Government Service Insurance System (GSIS), as well as their respective employers, and by extension, the establishment. The funds will be used to afford Pag-IBIG housing loans to covered employees.

In accordance with Section 5 of the Presidential Decree 1752, upon membership of an employee, the employer(s) will contribute to the employee's Pag-IBIG 3housing benefit plan an amount of this based on the monthly compensation of covered employees.

However, employees whose monthly compensation is less than four thousand pesos (P4,000), fund coverage for the Pag-IBIG 3housing benefit will be voluntary.

(For more details regarding the Pag-IBIG Fund and recommendations whether to accept housing benefits, be sure to contact your local Pag-IBIG centers)

(This article features content derived from the Home Development Mutual Fund Law of 1980, Presidential Decree No. 1752. By no means shall this article be used to substitute the Presidential Decree No. 1752)

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