Every employee regardless of employment status, trade or occupation is entitled to membership in the Pag-Ibig Fund otherwise known as the Home Development Mutual Fund (HDMF), said lawyer Lowella Albina, the agency’s legal counsel.
“This is a social legislation. Kita we usually support more our needs nga makalimtan nato to set aside for our future. Its now the State thinking of us to save from what we earn for future use,” she said during yesterday’s 888 News Forum where she discussed the benefits and coverage of R.A. 9679 or Pag-Ibig Fund Law of 2009.
The measure extends the scope of membership by “requiring mandatory membership of all employees regardless of employment status” and including “self-employed persons, regardless of trade, business or occupation with an income salary of at least P1,000.”
Aside from improving the lives of Filipinos by providing them with dignified shelters, Albina said that the law also aims to develop an integrated nationwide provident savings system.
The monthly contribution rates will be proportional to employee compensation. A monthly salary of P1,500 or less amounts to a share of 1 percent for the employee and 2 percent for the employer. For those earning more than P1,500 a month, both employee and employer share is at 2 percent.
Should a member lose his job or fail to pay its monthly contributions, his account will remain active but increases will only resume once the member is able to pay again. It is the duty of employers to register all their employees and submit all required employee information to the Fund, said Albina.
Imprisonment of not more than six years or a fine of not more than twice the amount due as well as criminal liability await violators.
Albina said it’s also important to reach out to employers particularly those who are not Filipinos.
The Pag-Ibig staff will be tasked to inform them of the mandatory fund through letters. However, failure of compliance may result to a final employer visitation and should the warnings go unheeded, penal sanctions will be imposed.
Pag-Ibig has already filed cases against 10 employers for non-compliance of R.A. 9679.
Ma. Salve Ceniza, Pag-Ibig Marketing and Enforcement Chief who joined Albina in the forum, said that the Pag-Ibig Fund Law was enacted after clamor from the private sector to make membership mandatory to all employees. Correspondent Sean Timothy Salvador