Are you a regular employee who always wonder how that Pag-IBIG deduction got in to your pay slip? Or you don’t really care since it is as normal and as inescapable as the income tax?
This article shows you how to become a member of the Pag-IBIG Fund if you are an employee here in the Philippines.
Pag-IBIG Membership For Employees
Earning at least P 4,000 a month? Thanks to Republic Act 7742, membership to the Pag-IBIG Fund has become mandatory for all employees covered by the Social Security System (SSS).
That’s right, all you have to show is you are earning a minimum of PhP 4,000 and you are working in a legitimate company, then you can be a member of the Pag-IBIG Fund.
As for employees earning less than P 4,000 a month, membership to the Pag-IBIG Fund is only voluntary.
So How Do You Exactly Become A Member Of Pag-IBIG Fund?
In most cases, you don’t even have to bother about it since your employer will file your membership to the Pag-IBIG Fund and remit your contributions on your behalf.
In a perfect world, everything is taken care of. In reality, that’s not always the case.
If your company won’t even bother, you can always be in control take the necessary steps yourself. This is especially true if you are considering getting a housing loan anytime soon. You want to show them that you have “perfect contributions” and is ready to take a loan.
Here are some guidelines:
- Locate the Pag-IBIG branch that is nearest to your place of work. Usually, this is the regional office of Pag-IBIG Fund.
- Proceed to the Marketing and Enforcement Division of the concerned branch.
- Request for a copy of the Membership Registration/Remittance Form (MRRF).
- Accomplish and submit two copies of the MRRF together with the following supporting documents to the Marketing and Enforcement Division:
- Members’ Data Form (MDF)
- Certificate of SSS Coverage and Compliance (for the current year), if private employer
- GSIS Certificate of Membership, if government employer
Pag-IBIG For Employers
Yes, local employers are taking part in contributing to “your membership.” That’s why some of them (the small businesses, especially) feel a little bit itchy when complying to this mandate.
A problem arises when your company is not even a member of Pag-IBIG. (And this is not uncommon for very small business outfits.) In that case, here are some guidelines for employers.
- Accomplish two copies of the Membership Registration/Remittance Form (M1-1).
- Prepare the following documents (2 photocopies):
- SEC registration or the company’s DTI and SSS registration
- R3 and R1A forms (SSS registration and remittance forms)
- Present all documents (M1-1, Registration and SSS forms) to the Marketing Division of the concerned Pag-IBIG branch office for verification (bring all originals for authentication). Secure a referral slip from the Marketing staff.
- Proceed to the office’s Cash Division for payment of the first monthly remittance.
- Submit the referral slip prepared by the Marketing staff and all verified documents to the cashier.
- Succeeding remittance dates shall depend on the schedule of payment of the office. Accomplished M1-1 shall serve as the remittance form for succeeding payments.
- Submit to the Marketing office two copies of the accomplished Member’s Data Forms (MDF) of all qualified employees to the Marketing Division on the second month after the first payment of contributions.
The names of newly-hired employees, who are covered by RA 7742, should be included in the accomplished M1-1 form and their corresponding contributions duly remitted to the Fund. The accomplished MDF of the new employees shall be submitted on the following month.
For Sole Proprietorship
- DTI Registration
- Mayor’s Permit/ Business Permit
- SEC Registration
- Articles of Partnership/Incorporation and By-laws
- The original copy of the documents shall be presented for authentication.
- Upon submission of complete documents, the Marketing and Enforcement Division shall issue the Payment Order Form
- Proceed to the Cash and Administrative Services Division and pay the 1st monthly membership contributions (MC).
- Upon payment, present the Pag-IBIG Fund Receipt (PFR) to the Marketing and Enforcement Division.
Summary of Pag-IBIG Fund Membership For Employees
Once you have verified your membership to the Pag-IBIG Fund, your employer should be able remit your monthly contributions (which is deducted from your salary) to the Fund since your employer also acts as a collection agent of the Fund.