2-year moratorium in Pag-IBIG contribution sought

MANILA, Philippines - A bill seeking a two-year moratorium on workers’ mandatory contribution to the Pag-IBIG fund has been filed in the Senate. In his explanatory note, Senator Manuel Roxas II, author of Senate Bill 3127, said the monthly contribution, which is being automatically deducted from the employee's salary, takes a slice away from the latter's limited resources intended for his family. "In these times of global financial crisis, every peso counts, and by lifting the burden of mandatory Pag-IBIG coverage, we give each employee the opportunity to put their money for their immediate and essential needs," Roxas said. SB 3127 proposes a two-year freeze in the collection of Pag-IBIG contributions from workers both in the public and private sector. Pag-IBIG was established through Presidential Decree No. 1752, or the Home Development Mutual Fund Law of 1980. It intends to motivate employed and other earning groups to better plan and provide for their housing needs. Pag-IBIG has a total of 7.27 million members as of September 2008. "Housing is important, but we also see how important it is to help our people cope with hunger. Let's give them the power to choose," Roxas said. - Amita Legaspi, GMANews.TV