The TUCP also cautioned the Home Development Mutual Fund (Pag-IBIG Fund) against raising its mandatory contribution rates, saying this would unduly burden its 7.4 million member-workers.
The contemplated increase in contribution rates is uncalled-for. It should be studied extensively. There should be adequate public consultations on the matter. To build up its financial capability to meet the growing demand for housing loans.
Pag-IBIG must forcefully expand membership and cover more workers. This is definitely the superior alternative to ramming higher contribution rates.
In a statement posted on the Pag-IBIG website on September 18, Chief Executive Officer Jaime Fabiaña announced that the fund would increase contribution rates. Increasing our contribution rates will allow members to borrow bigger loan amounts and support the higher loan packages under Pag-IBIG’s housing finance program, while still ensuring the long-term stability of the fund.
In spite of mandatory Pag-IBIG membership, only one out of every four workers is actually covered by the fund.
The Social Security System (SSS) now has 27.8 million member-workers in the private sector, while the Government Service Insurance System (GSIS) has another 1.4 million member-employees in the public sector.
Thus, Pag-IBIG has 29.2 million potential member-workers. Yet, the fund has managed to effectively cover only 25 percent, or 7.4 million of them.
Pag-IBIG could easily increase contribution collections and augment its financial resources four times by simply covering all SSS and GSIS members. After all, Pag-IBIG was established to provide inexpensive shelter financing and an affordable savings program for our workers.
Pag-IBIG provides P160-million worth of loans everyday that enable almost 300 members to borrow an average of P533,000 each to acquire new homes. At present, Pag-IBIG members contribute only 2 percent of their monthly earnings, with the salary ceiling at P5,000. Thus, most members contribute only P100 monthly, whether they are earning P5,000 or P50,000 every month. –Ernesto F. Herrera, Manila Times
ernestboyherrera@yahoo.com
Invoke Article 33 of the ILO constitution
against the military junta in Myanmar
to carry out the 2021 ILO Commission of Inquiry recommendations
against serious violations of Forced Labour and Freedom of Association protocols.
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