History of PAG-IBIG Fund or Home Development Mutual Fund (HDMF)

History of PAG-IBIG ("Pagtutulungan sa Kinabukasan: Ikaw, Bangko Industriya at Gobyerno")

When Did Pag-ibig Fund Philippines Start?

In 1978.

But it was only in 1981 when many employees came to know about Pag-ibig Fund or Home Development Mutual Fund (HDMF). It was the year employers started implementing Presidential Decree 1530, which was issued on December 14, 1980. This decreed Pag-ibig as mandatory for all employees and their employers.

PAG-IBIG stands for  "Pagtutulungan sa Kinabukasan: Ikaw, Bangko Industriya at Gobyerno"

Here are the Presidential Decrees (PD), Executive Orders (EO) and Republic Acts (RA) covering Pag-ibig Fund:

June 11, 1978 - Presidential Decree 1530 - President Ferdinand Marcos

Two Home Development Mutual Funds were established by the administration of then President Ferdinand Marcos -- one administered by SSS and another administered by GSIS -- to provide a program for employees to apply for housing loans. However, participation was voluntary.

June 4, 1979 - Executive Order No. 538 - President Ferdinand Marcos

The two Home Development Mutual Funds were merged into one Fund managed by the National Home Mortgage Finance Corp.

December 14, 1980 - Presidential Decree 1752 - President Ferdinand Marcos

This PD 1752 amended PD 1530.

The Home Development Mutual Fund was made one corporate body with a corporate office.
Coverage was made mandatory for all government and private employees and their employers.
It also extended the fund to other working groups, such as the self-employed, with or withour employer contributions.

Executive Order No. 35 - August 1, 1986 - President Corazon Aquino

- This amended 5 sections of PD 1752.
- The percentage of employee contributions was reduced from 3 percent to 2 percent.

Executive Order 90 - December 17, 1986 - President Corazon Aquino

- This repealed Section 4 of Presidential Decree No. 1752.
- Pag-ibig was made Voluntary.

Republic Act No. 7742 - June 1994 - President Fidel Ramos

- This amended PD No. 1752 and repealed Executive Order No. 90.
- Pag-ibig was made Mandatory again.

Republic Act No. 9679 - July 21, 2009 - President Gloria Macapagal Arroyo

- Addition of death benefit
- Mandatory membership for Filipinos employed by foreign-based employers, including Overseas Filipino Workers (OFWs)
- Mandatory membership for employees whether permanent, provisional or temporary
- Voluntary coverage for persons who are at least 18 years old and are not subject to mandatory coverage
- Paved the way for the launching of Modified Pag-ibig II, a five-year renewable savings program with a higher interest rate.

History of Pag-ibig Fund or Home Development Mutual Fund (HDMF)


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