If you think Pag-IBIG Contributions don’t matter, read on. Let me convince you why it’s a good idea.
Why freelancers hesitate to pay their Pag-IBIG contributions
As a Freelancer, your income depends on how hard you work and how long. If you don’t work, you don’t get paid. You don’t get benefits like paid leaves. Everything that comes into our account is hard-earned money. For that reason, we live by the saying “Value for Money.”
Before spending, we calculate and determine if this or that one is advantageous to us. To some, this may sound like a “Sigurista” (someone who makes sure everything goes to plan). But that’s not a bad thing if it means it’ll keep you from messing up your finances in the future.
Given that perspective, I understand why certain words like “Mandatory Contribution” sound annoying. Especially if you don’t know what’s in it for you.
This is why I decided to write this article. Pag-IBIG contributions feel unnecessary for most people. Why should you pay for government services that mandate regular contributions to its members?
The simple answer to that is the benefits.
Admittedly, not all are aware of the different benefits of their government contributions – specifically your Pag-IBIG contributions.
Pag-IBIG Benefits
Ask someone randomly what their Pag-IBIG contribution provides them. The most common answer is home financing. Their answer is correct but incomplete.
There is so much more you can get out of your Pag-IBIG contribution.
The Home Development Fund (HDMF) or popularly known as Pag-IBIG Fund is a government-owned and controlled corporation. From their name itself, they are known to provide affordable house financing to each Filipino member of the agency. Apart from that, there are a few more interesting benefits that you can enjoy.
Savings
Your Pag-IBIG Contributions are technically considered savings. The Pag-IBIG Fund guarantees annual dividends so It grows through the years. Let us not forget to mention, Pag-IBIG doesn’t have annual fees and their annual dividends are tax-exempted.
Also, you can withdraw your Pag-IBIG savings if you reach membership maturity after 20 years or after 240 monthly contributions. Another is when you reach the retirement age of 60 or 65.
To know more about how you can withdraw your Pag-IBIG savings, click on this link https://www.pagibigfund.gov.ph/Membership_RegularSavings.html.
Calamity Loan
We live in the Philippines. A nation that gets beaten by typhoons, earthquakes, and other forces of nature.
This is where the Pag-IBIG Fund Calamity Loan becomes handy. It is a cash loan facility available to Pag-IBIG Fund members who live in Calamity Stricken areas. The purpose of this benefit is to provide instant financial assistance to help recover from calamities.
To avail of this benefit, you must be an active member with at least 24 monthly contributions. Also, your area of residence must be declared in a state of calamity.
Multi-purpose Loan
Another benefit of being a Pag-IBIG Fund member is their short-term loan. Known as the Multi-purpose Loan, members can use this benefit if they are in need of quick cash, funds for travel, small home renovation, or school enrollment.
Take note that Multi-purpose loans charge a higher interest rate which is 10.5% vs 5.95% for the Calamity Loan.
To know more about the Multi-purpose & Calamity Loan, visit this link https://www.pagibigfund.gov.ph/STL_MPL_Calamity.html.
Death Benefit
Death is something we can’t predict. So it’s always best to be prepared for it as early as we can.
In case of an untimely death of a Pag-IBIG Member, the beneficiary can claim the death benefit if the savings benefit was not used by the deceased Pag-IBIG member.
Pag-IBIG Loyalty Card Plus
This is actually a benefit that not all members are aware of.
This is one of the additional perks that come with the Loyalty Card Plus. Members with the Loyalty Card Pus can enjoy exclusive rewards and discounts in over 300 Pag-IBIG partner establishments nationwide. It also doubles as a cash card where you can receive your Pag-IBIG Multi-purpose Loan.
To know Pag-IBIG Loyalty Card Plus partner establishment, click on this link https://www.pagibigfund.gov.ph/loyaltycardPlus/.
Are you ready to start contributing?
Given everything, being a member of the Pag-IBIG Fund has multiple rewards. As an active member, I can attest to some of its benefits – which I have used.
Just don’t forget to pay Pag-IBIG regularly so you can make the most of what it offers.