Pag-IBIG Contribution Hike Being Considered
State-run housing fund Pag-IBIG is considering to increase their member contribution as the demand for home loans continue to rise. This is the first time in three decades that PAG-IBIG has considered increasing member contribution. In 1986, Pag-IBIG members and their employers have each been contributing ₱100 monthly. Borrowers are drawn to Pag-IBIG due to relatively lower interest rates compared to commercial loans.
Pag-IBIG president and CEO Acmad Moti said that it could take effect in 2021 should the increasing push through and informal consultations with stakeholders will be held.
According to Moti, the growth of the loan demand has outpaced the increase of the contributions per member. If Pag-IBIG will cover the loan demand by borrowing money, it’s inevitable for them to charge higher interest rates. Additionally, to keep interest rates affordable, Moti noted that there is a need to carefully study where the money will be sourced
Had the increase in the number of borrowers not exceeded 10 percent, Pag-IBIG could have afforded to keep contributions steady, Moti said. But loan demand has been growing 17.5 percent in the last few years and 15 percent in the last 2 years.
Employers Confederation of the Philippines President Sergio Ortiz-Luis said the Pag-IBIG hike should not take effect this year, the same year as the increase in SSS member contributions.