How to increase your Pag-IBIG Savings for higher loanable amounts and bigger dividends earnings

Did you know that you can increase your Pag-IBIG monthly savings which will provide you greater financial benefits after 20 years? If no one has told you yet, read thoroughly this article and share it to your friends you care of.

The Pag-IBIG Savings Program is a fast, easy and affordable way for Pag-IBIG members to save for your future. Your monthly savings, employer counterpart share (if any) and total annual dividend earnings comprise the member’s Total Accumulated Savings or TAV. You’re TAV can be withdrawn after 20 years of continuous membership, upon retirement at age 65, separation of service due to health reason, permanent departure from the country or upon death and total disability (God forbid) as stated under Pag-IBIG’s provident savings claim terms.

Here are the advantages of growing your Pag-IBIG Savings:

+ Bigger dividends means bigger savings for you. Consider the following:

 * This dividend rate is indicative only based on previous years’ dividends of Pag-IBIG.  Actual dividends will be based on the yearly income of the Fund.

+ Bigger savings with Pag-IBIG means that your maximum loanable amount is higher. 
- The Multi-Purpose Loan (MPL) Program aims to address the member’s immediate financial needs. The loan amount is based on the member-borrower’s total savings and length of membership  with Pag-IBIG.* 
- The Calamity Loan Program is open to members whose place of residence  has been placed under a state of calamity after a natural disaster.  The loan amount is 80% of the member-borrower’s total savings with Pag-IBIG.* 
 - While the loan amount of the MPL will not be deducted from the Calamity loan and vice versa,       the combined loan amount under both programs should not exceed 80% of the member’s total savings. 
- The Housing Loan Program is a financial assistance for the purchase or construction of a residential unit. The maximum loan amount is P6 million. The member-borrower’s monthly savings  with Pag-IBIG, together with his gross monthly income, the appraised value of the property,  and his actual need, shall be considered when computing his approved loan value.

+ All savings are  government-guaranteed
As mentioned on Working, your savings are guaranteed by the Philippine government. Ergo, your Pag-ibig Fund will not vanish like the pre-need firms mismanaged by families who never returned what the planholders sacrificed to pay over many years.

+ Tax free annual dividend earnings 

+ Pag-ibig savings are not accessible like you bank savings accounts so you can’t withdraw them anytime – your money will surely grow as the years go by

+ With the employer counterpart share, members’monthly savings is immediately doubled.

+ Portability of  savings – members who transfer employers, from government to the private sector and vise-versa ,carry their Fund membership and may continue it at any time.

+ The interest rate is much higher on Pag-IBIG II Modified Savings ProgramIf you want higher savings account rates then, grab the Pag-IBIG II savings program. According to article, since 2010, the annual interest rate for Modified Pag-ibig II was 5.5% — much higher than savings account rates that are usually between 0.5% to 1.75%. MP2 earnings are not taxed. Interests on savings accounts are taxed especially in banks. The Pag-ibig board can also declare an interest rate of more than 5.5%.

The Pag-ibig board can also declare an interest rate of more than 5.5%.

If you look at time deposits, rates range from only 1.75% for deposits of at least 10,000 pesos to 2.75% for at least 5 million pesos.

There’s a 5% interest rate, but this is only given to time deposits of at least 1 million pesos and should not be withdrawn within 5 years. 

Here’s how to increase your monthly savings:

1. For employed members, just inform your HR officer that you want to pay more than the minimum savings of P100 per month. Your HR may require you to sign a form pertaining to the increased monthly savings.

2. For individual payors, like professionals, other OFW-members, businessmen, etc., just pay the higher monthly savings to Pag-IBIG. No need to fill out any form. Your increased savings will automatically be credited to your total savings. 

Where to pay:

1. For employed members who pay their savings to Pag-IBIG thru salary deduction,  their employers may remit their savings thru any of Pag-IBIG’s accredited collecting banks  or over- the -counter at the nearest Pag-IBIG branch office. 

 Employers may remit their employees membership savings at the following accredited collecting agents: 
 - Union Bank (Pag-IBIG Hub) - BPI (BPI ExpressLink) 
- LANDBANK (wePayAccess) 
- BancNet (Pag-IBIG Net)**
 - Security Bank (Pag-IBIG Real Time Facility)**
Note: Payment through these facilities requires enrolment. 

2. Individual payors may pay their savings using the following facilities: 
VISA or MasterCard credit cards
Globe GCash   § BayadCenter outlets
- SM Business Centers, Save More and SM Hypermart
- Over-the-counter at the nearest Pag-IBIG branch office
For more information, you may also call our 24/7 hotline number 724-4244 or email us at