2023 has been a landmark year for the Home Development Mutual Fund in the Philippines, more popularly known as the Pag-IBIG Fund, as it announced an increase in dividend rates to the highest levels since the pandemic began. With regular savings dividends at 6.55% and Modified Pag-IBIG (MP2) savings at an impressive 7.05%, members of the Fund have more reasons to smile.
Record-breaking savings and income
The Pag-IBIG Fund has not only increased its dividend rates but also reported significant growth in membership savings and net income. Total membership savings reached ₱ 89.26 billion ($1.61 billion), with MP2 Savings at ₱ 46.54 billion ($837.72 million), marking substantial increases from the previous year. The Fund’s net income soared to a record ₱ 49.79 billion ($896.22 million), ensuring that a significant portion, 97.86% to be exact, is returned to its members as dividends.
Doubling down on contributions
In a move to further strengthen its financial health and offer more benefits to its members, the Pag-IBIG Fund has doubled its minimum monthly contribution rate from ₱ 200 ($3.60) to ₱ 400 ($7.20) starting February 2024. This strategic increase is expected to enhance the Fund’s reserves significantly, thereby increasing the loanable amounts for short-term loans for its members.
Innovative loan programs on the horizon
Looking ahead, Pag-IBIG Fund is set to introduce two innovative loan programs in April 2024. A quick loan facility will offer ₱ 5,000 ($90) and ₱ 10,000 ($180) to members in need, while a new health and education loan program will expand the scope of financial assistance available. These initiatives are part of Pag-IBIG’s commitment to providing more value to its members and supporting their diverse needs.
MP2 as a safe haven for investors
The MP2 Savings Program continues to stand out as a lucrative and low-risk investment option, especially for Overseas Filipino Workers (OFWs) and individuals with a low-risk tolerance. Offering tax-free dividends, the MP2 program is an excellent way for members to grow their savings securely and work towards achieving their financial goals, including the dream of owning a home.
As the Pag-IBIG Fund moves forward with these positive developments, it remains a pillar of support for Filipinos looking to save and invest wisely. With its record-breaking performance in 2023 and the introduction of new programs, the Fund is well-positioned to help its members build a secure financial future.
