The Home Development Mutual Fund (HDMF) has recently announced that there will be an increase in member contributions starting in February 2024. This increase is part of the government agency’s efforts to sustain the fund and ensure the long-term viability of its programs and services. As a member of HDMF, it is important to understand the implications of this increase and how it may affect your future benefits. In this article, we will discuss what you need to know about the upcoming HDMF contribution increase and how it will impact you.
Here’s what you need to know about the upcoming HDMF contribution increase:
1. Amount of Increase: Beginning in February 2024, the monthly contribution for HDMF members will experience a 100 percent increase based on their monthly earnings. According to Pag-IBIG CEO Marilene Acosta, the new contribution amount will be P200, doubling from its previous value of P100.
2. Employer-Employee Sharing: The increase in HDMF contribution will also involve a sharing between the employer and the employee. The employer will cover 2% of the total contribution, while the employee will shoulder the remaining 2%. It is important for employers to be aware of their responsibility in implementing this contribution adjustment.
3. Mandatory and Voluntary Members: The increase in contribution applies to both mandatory and voluntary members of Pag-IBIG Fund.
4. Impact on Benefits: The scheduled increase in HDMF contributions is in accordance with Republic Act No. 9679 or the Home Development Mutual Fund Law of 2009 which mandates annual contribution increases to ensure the long-term sustainability of the Fund. These contributions go towards various services and benefits provided by the HDMF, such as affordable housing loans, provident savings, and calamity loans.
5. Implementation and Compliance: The new contribution rate will be implemented starting February 2024, and all employers and employees are expected to comply with this adjustment. Failure to do so may result in penalties and legal consequences. Employers are advised to inform their employees about the increase and ensure proper deduction and remittance of contributions.
If you have any questions or concerns about the scheduled increase in HDMF contributions, it is recommended to contact your nearest Pag-IBIG office or visit their official website for more information.