Pag-IBIG Benefits and Services for OFWs

Pag-IBIG Benefits and Services for OFWs -diarynigracia

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Pag-IBIG Membership Programs Offered to OFWs


Do you intend to construct your own home? Make some renovations and repairs? Or maybe you’re motivated to increase your retirement savings? Any of these things are possible if you are a member of the Pag-IBIG Fund by merely taking advantage of their services.


The Home Development Mutual Fund (HDMF), often known as the Pag-IBIG Fund, is a Philippine government organization that offers savings programs and inexpensive home finance to Filipinos. It provides regular housing loans, catastrophe loans, multi-purpose loans, regular savings, and the MP2 savings program to members in the Philippines and overseas.

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Here is a list to learn more about the benefits and services offered by Pag-IBIG to OFWs.


Most people are aware that saving money is essential to living a prosperous life. However, many individuals are unaware that the Pag-IBIG Fund offers a simple and practical approach to saving money.


A government organization called the Pag-IBIG Fund was established to assist Filipinos in making savings for the future. The agency provides individuals with several savings options, such as the regular and the MP2 savings programs. The best part is that Pag-IBIG membership is entirely optional.


Now is the perfect time to join Pag-IBIG if you aren’t already. You can travel to the Pag-IBIG branch closest to you or online at


Once you join, you can immediately begin setting money aside for the future. You may be confident that your money is secure with Pag-IBIG and that you’ll be able to live comfortably in retirement.


What is the Meaning of Pag-IBIG?

Pag-IGIB stands for Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno.


The Pag-IBIG Fund, also known as the Home Development Mutual Fund (HDMF), was established in response to the demand for a government-sponsored savings plan and financing for worker housing in the Philippines. On June 11, 1978, the Fund was established by Presidential Decree No. 1530.


What is Pag-IBIG?

Pag-IBIG is a government-owned and -operated company that manages the national savings program and offers Filipinos credit for reasonably priced housing.


What does Pag-IBIG aim to achieve?

The sole purpose of Pag-creation IBIG was to encourage Filipinos to save money.


Who should join the Pag-IBIG Fund as members?

Following the passage of Republic Act No. 9679, the following will require membership in the Fund:

  • Every worker, worker’s aide, professional, officer, and the company is covered by the SSS and GSIS;
  • Uniformed members of the Philippine National Police the Bureau of Jail Management and Penology, the Bureau of Fire Protection, and the Philippine Armed Forces;
  • Every judge and commissioner on constitutional bodies;
  • overseas Filipino workers (OFWs);
  • Filipinos who are employed by foreign businesses, either locally or abroad.


Membership Contribution

The minimum membership contribution, according to Pag-IBIG, is P100. But your minimum investment should be Php200 if you intend to obtain a house loan in the future. The value applied is calculated based on the current peso equivalent at the time of payment.


Unless the foreign employer wants to contribute, all payments must be made by the OFW since they have no employer counterpart.


OFWs are free to allocate a larger amount if they choose. Pag-IBIG encourages its members to increase their contributions so that, in addition to the tax-free income, their savings would be higher when their contributions mature, which occurs after 20 years.


OFWs may contact accredited banks and remittance partners and the Pag-IBIG office housed at the embassy or consular office in the host country to pay the payments. Look into the many methods for making contributions, housing, and loan payments. Visit their website for a detailed overview of Pag-payment IBIG’s options and a list of certified banks and remittance partners.


List of Pag-IBIG Programs and Benefits

Pag-IBIG provides services and activities to all Filipinos, both those who reside in the Philippines and those who do so abroad, in addition to the housing development fund.


Few people in the country are aware of the Pag-services IBIG’s initiatives. For better direction, look at this extensive list of industries and services accessible to all Filipinos.


1.     Housing Loan

The most well-liked program benefit of the Pag-IBIG Fund helps its members by providing accessible home financing. HDMF succeeds for a longer time. A low-interest home loan from Pag-IBIG Fund is available with a 4.5% interest rate (for a loan of Php 450,000) and a maximum 30-year term. A qualified member may borrow a maximum of Php 6,000,000 in total.


2.     Overseas Pag-IBIG Members Services Desk

With activities in Philippine embassies, Philippine Overseas Labor Offices (POLOs), and Philippine Consulate General Offices, Pag-IBIG Fund is currently active in twenty-three (23) foreign countries in Asia Pacific, Europe, the Middle East, and North America. These operations support front-line services for membership registration, facilitate the remittance of membership savings and loan amortizations, and aid in providing provident claims and loan benefits.


3.     Pag-IBIG Death Benefits

You may be eligible to apply for death benefits if you are a rightful heir or beneficiary of a deceased Pag-IBIG member who neglected to utilize their savings advantages while they were still alive. In contrast to SSS, which offers distinct death and retirement benefits, Pag-IBIG does not include funeral or burial benefits.


4.     Pag-IBIG Fund Loyalty Card

The Pag-IBIG Fund Loyalty Card doubles as a Pag-IBIG Fund Transaction Card and can be used as a valid form of identification when submitting an application for a Multi-Purpose Loan (MPL), Housing Loan (HL), or Provident Benefits Claim. Pag-IBIG Fund transactions are more secure because the card contains the member’s photo, signature, Pag-IBIG Fund Membership ID (MID) Number, and biometric information.


Through Pag-IBIG Fund’s numerous partner organizations, the Pag-IBIG Fund Loyalty Card also offers savings on prescription drugs, university tuition, travel, cosmetic, and wellness services, as well as reward privileges on groceries and gas.


5.     Pag-IBIG Savings

Pag-IBIG I Savings Program

Overseas Filipinos can increase the value of their savings through the Pag-IBIG I Savings Program more than they could by keeping it in a bank. Pag-IBIG reported 6.91% dividend earnings in 2018, totaling PhP28.23 billion, which was credited proportionately and tax-free to the accounts of the members.


Sample Computation of Pag-IBIG I Savings (Php):


Monthly Savings Savings in 20 Years Total Dividends Earned (6.09%) Total Accumulated Savings in 20 Years
200.00 48,000.00 44,085.00 92,085.00
600.00 144,000.00 132,254.99 276,254.99
1,200.00 288,000.00 264,509.97 552,509.97
2,000.00 480,000.00 440,849.96 920,849.96
3,000.00 720,000.00 661,274.93 1,381,274.93

*Based on average dividend rates from 2014 to 2018, 6.09% was calculated. The Fund’s annual income determines the actual dividend rate.


Modified Pag-IBIG II (MP2) Saving Program

A government-backed optional savings program called Pag-IBIG MPII, also known as Modified Pag-IBIG II or simply MP2, was introduced in 2010 and gives a tax-free annual dividend that is 50 basis points higher than the mandatory, regular membership. The dividend is determined each year based on the fund’s yearly financial performance. It has a duration of five years, no maximum capital ceiling, and a minimum capital requirement of Php 500.


Sample Computation of Modified Pag-IBIG II (MP2) Saving (Php):


Monthly Remittance:


Monthly Savings Savings in 5 Years Total Dividends Earned (6.09%) Total Accumulated Savings in 5 Years
500.00 30,000.00 5,444.90 35,444.90
1,000.00 60,000.00 10,889.79 70,889.79
5,000.00 300,000.00 54,448.96 354,448.96
10,000.00 600,000.00 108,897.91 708,897.91


One-time Remittance:


Monthly Savings Total Dividends Earned (6.09%) Total Accumulated Savings in 5 Years
30,000.00 11,276.57 41,276.57
60,000.00 22,553.13 82,553.13
300,000.00 112,756.67 412,765.67
600,000.00 225,531.33 825,531.33
1,000,000.00 375,885.55 1,375,885.55

*Based on average dividend rates from 2014 to 2018, 6.09% was calculated. The Fund’s annual income determines the actual dividend rate.


6.     Pag-IBIG Mortgage Redemption Insurance

You must have Mortgage Redemption Insurance to obtain a PagIBIG home loan (MRI). This Pag-IBIG non-life insurance covers your mortgage in the case of passing or serious sickness. But you are required to cover the MRI premiums.


7.     Provident Savings

The Pag-IBIG fund is a member’s savings that they can take after the fund reaches maturity. According to the Pag-IBIG Fund, profits will be paid to both members and their employers’ payments. All of that money, known as the Total Accumulated Value (contributions plus dividends), can be withdrawn after it achieves maturity, equal to 240 months of contributions for investors at least 45 years old. Unlike money in a conventional bank savings account with a fixed interest rate, the fund’s members’ earnings are not always easy to foresee in advance. Profits from membership are fundamentally based on how well the investment performs as a whole.


8.     Short-Term Loan

Similar to the Social Security System (SSS) and the Government Service Insurance System (GSIS), the HDMF provides eligible members with short-term loans to help them financially. Members are eligible for two different loan types:


a.     Calamity Loan

Members who have been impacted by natural catastrophes like floods, fires, tropical cyclones/typhoons, volcanic eruptions, and other similar calamities are eligible for this loan program. Members may borrow up to 80% of their Total Accumulated Value, subject to the program’s regulations and restrictions (TAV). A Calamity Loan has an annual interest rate of 5.95%. The loan has a 3-month grace period after a 24-month amortization period. The fourth month following the check date is when the payment cycle starts.


b.     Multi-Purpose Loan (MPL)

The program’s goal is to assist participants with housing maintenance, small home upgrades, home enhancements, tuition or other educational costs, personal needs, livelihood, and other necessities. A member must have held investments for at least twenty-four (24) months., or have twenty-four months’ worth of funds, to be eligible for the program and must have made at least one contribution in the six (6) months before the month of the loan application.


How to Become a Member of Pag-IBIG?

It’s simple to sign up for Pag-IBIG! You can do it via an authorized agent, online, or at any office close to you. You can apply for the Pag-IBIG Overseas Program if you’re an OFW. Visit today for more details.


Step 1: Register Online.

Online registration is the initial step. Visit Virtual Pag-IBIG for account creation. You must register by filling out the registration form and creating an account. After registering, a Pag-IBIG Membership Identification Number will be sent to you (MID). You will require this number for upcoming transactions with Pag-IBIG, so keep it secure.


Step 2: Make Contributions.

You can begin making donations to your Pag-IBIG account once you’ve registered. Payroll deductions or voluntary contributions are also acceptable forms of contribution. You can donate if you’re an OFW by using their Overseas Program.


Step 3: Avail of Benefits.

Once you have registered and made payments, you can take advantage of the many services Pag-IBIG provides, including the home loan, death and disability insurance, and aid with catastrophe loans.


How can you continue making a voluntary member’s Pag-IBIG contribution?

Follow these steps to renew your membership and carry on paying:


Step 1: To change your membership details, complete the Member’s Change of Details Form (MCIF) (e.g., from employed to self-employed).

Step 2: Take the completed MCIF and two legitimate IDs to the Pag-IBIG branch closest to you.

Step 3: Pay at the same location in the third step.



Overseas Filipino Workers, or OFWs, are our modern-day heroes. To give their loved ones back home a better life, they leave their families behind and labor in another nation, frequently in hazardous situations. While we are all incredibly proud of what they have accomplished, we must remember that they are people with needs and rights of their own. Ensuring OFWs can access essential services like Pag-IBIG membership is one way we can demonstrate our support for them.


OFWs and Filipino migrant workers can save money for the future by joining Pag-IBIG. They give OFWs the financial security and support they need to create a better life for themselves and their family through its many advantages and programs. It’s crucial to become familiar with all of Pag-features IBIG’s and programs if you want to make the most of your membership. If you have any inquiries regarding becoming a member or utilizing your membership benefits, you can contact Pag-IBIG through its customer care hotline or website.



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