The Trade Union Congress of the Philippines is open to the proposal of Pag-ibig to increase its members monthly contributions to afford the growing numbers of working people who borrow additional cash on hand through its short-term and housing loans facilities to cope with the rising cost of living and shortage of decent housing.
TUCP president Raymond Mendoza said the proposed phased increase in monthly contributions for Pag-ibig members will help the workers tide themselves over their financial burden.
“In order to accommodate more cash and home loans applications without compromising the fund, the TUCP is open to the Pag-ibig plan to adjust the maximum salary cap from the present P5,000 to P15,000 which will translate to a monthly savings rate of P300 for the employee and P300 for the employer,” Mendoza said.
“However, the TUCP takes the position that the adjustment made in three tranches in a span of three to five years to cushion the workers and employers from effects of additional deductions of other social security agencies,” Mendoza said.
Pag-Ibig Chief Executive Officer Acmad Rizaldy P. Moti said there is a need to ensure the capacity of the fund to finance the housing needs of Filipino workers for the long term by keeping home loan interest rates as affordable as possible for workers and their families particularly those who avail of socialized and economic housing.
Moti explained there is steady growth among members seeking housing loans in the last five years starting from P40 billion in 2012 to P75 billion last year.
He said that if the availment rate maintains its 15-percent yearly trajectory, the fund may experience a funding gap by 2024 or earlier as members contribution rates have not increased in the last 33 years.
TUCP spokesperson Alan Tanjusay said the uptick in Pag-ibig members seeking short-term cash loans facilities such as Pag-ibig multi-purpose loans means workers and their families are struggling to cope with rising inflation.
“Workers who are helping the economy grow are feeling the pinch of a growing economy. These are in a way smoke signals telling government that policies on current wages are not enough and existing benefits are no longer sufficient. This is also an indication that government public services in terms of health, education, mass transport, medicines are not working. Government needs to do more,” Tanjusay said.
In June this year, Pag-ibig announced they have released an all-time high of P25.57 billion multi-purpose loans for 1.2-million members in the first half of 2019. It said multi-purpose cash loans disbursements for the first six months of the year registered a 6 percent year-on-year growth and surpassed the P24.07 billion released in the same period last year by P1.50 billion.