TUCP proposes in-city
tenement housing for minimum-waged earners in dialogue with Pag-IBIG
Trade Union Congress of
April 4, 2019
QUEZON CITY – The workers group Trade Union Congress of the
Philippines (TUCP) is going to propose an affordable in-city
tenement housing for minimum-waged earners (MWEs) in its forthcoming
dialogue with state housing fund PAG-IBIG officials’ plan to
increase in members’ monthly contributions.
“We are not closing our doors to an increase in contributions in
Pag-IBIG as we have yet to see the proposal from them. We shall wait
for their presentations before we make the decision to support it or
not,” said TUCP President Raymond Mendoza.
Mendoza stressed that any increase should redound to lower home loan
interest rates, higher maturity savings returns for members,
increased efficiency in Pag-IBIG operations, greater accessibility
to home loans particularly for minimum wage earners and low income
“In the light of growing inadequate mass transport problems and
worsening traffic congestion, we shall also demand that Pag-IBIG
expand its services and benefits to members by initiating
development of an affordable in-city tenement housing for lowly-paid
workers and develop housing projects for workers in the regions and
the countryside, in the export processing zones, Overseas Foreign
Workers, and government employees,” Mendoza said.
Mendoza said they are looking at utilizing idle government-owned
lands in the National Capital Region to build tenement housing units
similar to tenement housing in Taguig and Tondo, Manila to reduce
workers’ daily expenses in the face of their meager daily salary.
The in-city housing program for workers will help working people and
their families cope with rising cost of living in metropolis and
minimize a range of stress-related disorders and diseases caused by
travelling and commuting in a problematic mass transport system
environment, Mendoza explained.
“We also acknowledge that the dividends that they have been giving
out to members have improved in the past several years which is good
for the workers and their families because their contributions is
considered forced savings and Pag-IBIG should sustain this,” Mendoza
said adding: “We also understand from their last Chairman’s report
that the number of home loan borrowers have increased substantially
and it is important to ensure the sustainability of Pag-IBIG”.
The current each member’s contribution rate is at P100 employee
share plus P100 employer counterpart, total of P200 per month. By
law, the contribution rate is set at 2% of a member’s salary, with a
cap of P5,000 Maximum Fund Salary (MFS) of P5,000 per month. This
was set way back in 1986. The present value of P200 then is now
Contributions of members, including employer’s counterpart
contributions are returned to Pag-IBIG members upon reaching
membership maturity of 20 years. The average total savings of a
member for 20 years is approximately P80,000.00. There are members
who voluntarily increase their contributions.
Members are also able to borrow 80% of their total savings with the
Fund under Pag-IBIG’s multi-purpose loan program.
Members are able to borrow from the Fund housing loans which they
can use to purchase their own homes. The maximum housing loan a
member can borrow is up to P6 Million depending on capacity to
amortize the loan. They can use the loan to purchase a house and
lot, construct a house, a condo unit, or house improvement.
Members are also entitled to Calamity Loans equivalent to 80% of
their total savings with the Fund during times of natural disasters
and declaration of state of calamities in their areas of residence.
Higher contribution rates will result to higher savings, higher MPL
and Calamity loan entitlements and low housing loan interest rates.