By Rjay Zuriaga Castor
The government’s Home Development Mutual Fund, or Pag-IBIG Fund, reported around PHP 6.6 billion in savings from its members in Western Visayas from July 2022 to September this year.
Atty. Stanley Alayon, head of Pag-IBIG’s Molo, Iloilo City branch, said PHP 4.5 billion came from the Regular Savings Program, while PHP 2.1 billion was from the agency’s MP2 (Modified Pag-IBIG II) Savings.
The Regular Savings Program is a mandatory savings program for all Pag-IBIG members, including employees and self-employed individuals. The minimum monthly contribution is PHP 100, though members can contribute more to increase their dividends.
The MP2 Savings Program, meanwhile, is a voluntary option designed for members who wish to save more and earn higher dividends in addition to their regular savings. This program is also open to pensioners and former Pag-IBIG members.
Alayon encouraged active Pag-IBIG members to consider investing in the MP2 program, noting its higher dividend rates of around 7.05 percent, compared to the 2023 rate of 6.55 percent for regular savings.
He added that only a “very small percentage,” or approximately 10 to 15 percent of existing members, are currently investing in MP2.
“We are promoting this option to increase our capital, enabling us to finance more loan programs,” he said.
However, Alayon noted challenges with large firms and businesses that take advantage of the savings programs.
“Our target is the middle class, but big companies have been investing between PHP 10 million and PHP 50 million,” he said. “This benefits them because they earn the dividends.”
To address this issue, Pag-IBIG has implemented a new policy limiting individual contributions to a maximum of PHP 10 million to prevent such abuses.
