Mandatory Pag-IBIG membership for OFWs

It used to be that Pag-IBIG membership for OFWs is voluntary with terms of 5, 10, 15 and 20 years. However, with the new Pag-IBIG Fund Law of 2009, OFWs are now covered mandatorily.

This is really an advantage as it is a common knowledge that a lot of Filipino overseas workers find it difficult to save for their future or old days inspite of working abroad for several years. With the mandatory coverage, our OFWs will have no choice but to save which in the long run could actually help them and their families during times of need.

Under the mandatory coverage, there are various benefits to be had for the Pag-IBIG members. These are:

Savings. Remitted members’ contributions earn dividends, tax-free and government guaranteed. Last year, Pag-IBIG declared a dividend rate of 5%, which is quite high compared to bank interests which barely reach 3% in most cases.

Short Term Loans. These loans are available for active members of at least 24 months to help in their financial needs. Loanable amount is about 60% to 80% of the total contributions inclusive of dividends of the borrower payable in 24 months.

Housing Loan. Members with good standing can avail of home financing loan with an interest rate of as low as 6% to 11.5% payable in 30 years. Maximum loanable amount is P3 million. Housing loans cover the following loan purposes: purchase of foreclosed property, lot purchase, ch

For more details, check out Pag-IBIG Fund’s website at www.pagibigfund.gov.ph