Pag-Ibig implements mandatory membership of all employees

CEBU, Philippines - Starting January next year, all employees, whether permanent, temporary or provisional, all self-employed persons, regardless of trade, business or occupation with an income or salary of at least P1,000 a month will be mandated to apply as members of the Home Development Mutual Fund (Pag-ibig Fund).

This is just one of the highlights of the recently signed Republic Act 9679, otherwise known as the Home Development Mutual Fund Law of 2009.

Under Rule V of the Implementing Rules and Regulations, all workers earning at least P1,000 shall be covered by the law including household helper defined as persons who render domestic services exclusively to a household such as drivers, gardeners, cook, governess and other similar occupations.

Membership is also mandatory if you are a self-employed person, whether actors, directors, scriptwriters and news reporters who are not under an employer-employee relationship; professional athletes, trainers and jockeys; farmers and fisherfolk; workers in the informal sectors such as cigarette vendors, street vendors, among others.

Coverage under the Fund shall be also mandatory for Filipinos employed by foreign-based employers whether deployed here or abroad.

The law also provides voluntary coverage for persons who are at least 18 years old and are not subject to mandatory coverage.

Mandatory coverage shall start, for employers, at the beginning of his business’ operation. For employees, the start of his membership will be on his hire date. Those who are covered by the law but were already employed prior to the passage of RA 9679, coverage must begin on January 1, 2010.

The IRR indicates that it shall be the duty of all employers to register all their employees who are subject to mandatory coverage. They must submit all data and information to the Fund.

Registration of self-employed will be within 30 days from the date that he started to be self-employed.

Both the Mandaue and Cebu City branches of Pag-ibig Fund have already sent letters to local government units in Cebu to disseminate the information on the new mandates of RA 9679.

Vice president and chairman of HDMF Noli de Castro said that there will also be an increase in the membership contributions rates that needs to be done to further improve the delivery of services to all members.

The increase in member’s contribution is expected to bring more funds to HDMF which they may use to provide assistance to more members who need it especially to answer the growing demand for affordable housing.

Meanwhile, the transaction cards for all Pag-ibig members will be available by the end of January next year. Printing has started in Cebu City and Mandaue branch last November. — Jessica Ann R. Pareja/WAB   (FREEMAN NEWS)