Why is this important if you are an employee?
There are lots of benefits that one can avail of from Pag-IBIG including housing loan, multi-purpose loan, provident claim in the future, etc. All companies and employers operating in the Philippines are required by law to have their employees become member of Pag-IBIG or the Home Development Mutual Fund (HDMF) and to deduct monthly the required members’ saving contribution.
But there are companies who did not register with Pag-IBIG for whatever reason, the sad result of this is that their employees will not be able to enjoy the benefits which are available to Pag-IBIG members.
There are also companies which are duly registered with Pag-IBIG and their employees are registered members of Pag-IBIG too but did not deduct the monthly member’s savings’ contribution.
This Penalty Condonation Program this 2017 by Pag-IBIG Fund is for these employers (and their employees).
Will you as the employee personally apply for this Pag-IBIG Condonation 2017 program for penalty on members savings arrears? NO. It will be your employer who must apply for condonation.
Who are eligible to apply?
These are the EMPLOYERS who can apply for the PAG-IBIG PENALTY CONDONATION PROGRAM on MS:
- Delinquent registered employers that did not deduct Members’ Savings (MS) from their employees.
- Unregistered employers that did not deduct MS from their employees.
- Employers with ongoing plan of payment under Pag-IBIG Fund Circular No. 339
Please note that the condonation will apply to UNPAID penalties only.
Pag-IBIG Penalty Condonation Program PROCEDURE
These are the steps on how to avail the penalty condonation program on member’s savings’ arrears. Eligible employers please take note of this, this is for the benefit of employees, please comply asap.
First, if you as the employer is not yet registered with Pag-IBIG FUND, you must register now and update records with Pag-IBIG through the online registration system of HDMF. If you are already registered, login back to the system and make sure all records are updated.
Second, you must secure and accomplish two copies of the Penalty Condonation application form. This form is available in all Pag-IBIG Fund branches nationwide. Visit the branch closest to you / your company headquarter and ask two copies of this form.
Third, you must submit the duly accomplished Penalty Condonation application form to the Pag-IBIG branch covering the employer place of business. Hindi puede isubmit sa kahit saang Pag-IBIG branch, dapat isubmit lang sa branch na nakakasakop sa place of business or location ng office / company.
Payment Options To Avail the Penalty Condonation
The qualified employers will choose any of the two options. These options are:
- Full payment of arrears on unpaid employer share and the deprive dividends; or
- Plan of payment for a maximum period of two years, with an interest of 0.5% per month.
Once the employers have chosen 1 of the option above, submitted the application, and have duly complied with the required payment and is approved – the penalties will be waived.
WHAT IS THE BENEFIT IF EMPLOYERS WILL APPLY AND GET APPROVED FOR THE PENALTY CONDONATION? The main benefit is that the unpaid penalty due will be waived. Hindi na pagbabayarin ng Pag-IBIG ang employer sa mga penalty dues na di pa nababayaran dati. Makakaluwag ang employer because of this program.
WHEN IS THE START OF THE CONDONATION? This program of the Pag-IBIG FUND started last August 26, 2017. This is on-going.
For any concerns, or questions, or feedback on this program, you may CONTACT Pag-IBIG FUND via the following channels:
- Telephone: (02) 724 4222
- Email: firstname.lastname@example.org
You may also visit the Pag-IBIG branch that covers the location of your business so that all your questions will be answered right away by the expert staff of this government agency.
If you are an employer not deducting member’s savings every month yet, apply for this program. At the end of the day, this is also for the benefit of your employees. Do it for them, and for your company too so that your business will not further suffer penalties, etc. This also ensures that your business is in compliant with Philippine laws and is in good-standing with Pag-IBIG Fund.
Even if you are a small-time employer or big company owner, compliance with Pag-IBIG contribution is a must!