Pag-IBIG Fund (Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industria at Gobyerno) is a mandatory savings program for Filipino employees. It primarily provides affordable housing loans and short-term loans while also functioning as a provident savings fund.
Membership Benefits
Members can access housing loans at favorable rates, multi-purpose loans for various needs, calamity loans after disasters, and eventually their accumulated savings plus dividends. Housing loans are Pag-IBIG's primary purpose, offering significantly lower rates than commercial lenders.
Contribution Requirements
Both employers and employees contribute to Pag-IBIG. The employee contributes 1-2% of monthly compensation depending on income level, and the employer matches with 2%. Contributions are mandatory for employees earning above a minimum threshold.
Provident Savings
Accumulated contributions plus earnings can be withdrawn upon membership maturity (20 years), retirement, permanent departure from the country, or other qualifying events. The fund pays annual dividends to members based on its investment performance.