Baguio Pag-IBIG Members React Positively to Upcoming Contribution Increase

BAGUIO: Members of the Pag-IBIG Fund in Baguio have voiced their support for the planned increase in monthly contributions set to begin in February this year. They anticipate the long-term benefits of this adjustment, recognizing its impact on their future savings.
According to Philippines News Agency, Rose Malekchan, a private sector employee, expressed her favor for the increase on Monday, seeing it as a form of forced savings that would ultimately benefit members upon retirement.

Malekchan, alongside other members like Jonalyn Ponciano, a staff member at a government agency in Baguio, and Marie Cruz, a government employee in the Cordillera, shared similar sentiments. They believe that the contribution hike will result in greater benefits, particularly in terms of loans and retirement funds. Cruz noted the minimal impact of the increase, as it is only PHP100, adding to their savings.

Aileen Refuerzo, an employee of the Baguio City government, stated that the hike is acceptable as long as it translates to more benefits for members. Nora Cruz, a restaurant cashier, echoed this sentiment, viewing the increase as an opportunity to enhance her retirement savings. She emphasized the importance of the fund being free from corruption.

Brigitte Badando, a food server in Baguio, and Aida Pagtan, an employee of the Department of Agriculture in the Cordillera, also supported the increase, associating it with higher savings and intact financial security. Jamie Malingan, another government employee, mentioned that the hike was initially planned for last year and saw it as a means to accrue more benefits from Pag-IBIG.

Hanna Lacsamana, a private media practitioner in the Cordillera, acknowledged the delay in the contribution increase due to the pandemic. While supporting the hike, she expressed concern for minimum wage earners struggling with inflation and hoped for a delay in the increase, also considering the potential rise in Philhealth contributions.

Pag-IBIG Chief Executive Officer Marlene C. Acosta, in Circular 460 dated January 15, 2024, stated that the increase in the Maximum Fund Salary (MFS) was approved by the agency’s Board of Trustees in February 2023 and is scheduled to take effect this February. The circular specifies the new contribution rates for members, with those earning PHP1,500 or below contributing 1 percent, while their employers, if applicable, will contribute 2 percent. For those earning above PHP1,500, both member and employer rates are set at 2 percent.