Pag-IBIG Fund Expands Mandatory Coverage

Under the universal membership coverage which takes effect beginning January 2010, the following are mandatorily covered by the Fund: all employees who are compulsorily covered by the SSS; all employees who are subject to mandatory coverage by the 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, Overseas Filipino Workers, and Filipinos employed by foreign-based employers, whether deployed in the country or abroad.

With this expanded coverage OFWs can enjoy the various benefits of being a member which include:

Savings. Members’ contributions are credited to their savings or the total accumulated value that earn dividends and fully guaranteed by the national government. In 2009,
Pag-IBIG declared tax-free dividends amounting to P8.5 billion with a dividend rate of 5%.

Short Term Loans. OFW-members can also avail of short-term loans that will help address their immediate financial needs such as payment for tuition fees, hospital bills, appliance purchases, minor home repairs, and even for small business capital.


Housing Loan. A member of good standing is eligible to avail of a home financing loan that has an interest rate of as low as 6% to 11.5% payable in 30 years. The maximum loan amount is P3 million. The loan can be used for the purchase of a fully developed lot within a residential area not exceeding 1,000 sq.m., purchase of a residential house and lot, townhouse or condominium unit, construction or completion of a residential unit on a lot owned by the member, home improvement and refinancing of an existing loan.

More about this story here: http://www.pagibigfund.gov.ph/nr_feb2010b.htm