Did you know the difference between the Pag-IBIG Overseas Program and the regular Pag-IBIG Program, likewise known as Pag-IBIG I?
Most OFWs assume that since they are based overseas, they should be getting the Pag-IBIG Overseas Program, as they are now compelled to become members of the Pag-IBIG Fund.
Well, that’s not really the case.
Let me explain further by citing in part a message sent to us (via an article comment) by a site visitor who is an OFW based in Singapore.
I am an OFW since December 2008, and I stopped my contribution the same date. Last month, October , I started to contribute again in one of your outlets here in Singapore. Since I Don’t know my Pag-ibig account no., they just gave me a new one temporarily. And they said its ok.. and can add up that to my old Pag-ibig account if i will activate the status of my old account…
1. Is it true?
2. How come? like for example if i want to avail a housing loan? you mean i need to wait for me to complete my ofw 24 months contribution?
3. Then hows my 4 years local contribution? is it like forfeited?
Actually I let my father follow up that today in the philippines. then one of the staff said that my local contribution is different from ofw and cannot combine it.. for me to have a housing loan.
what to do.?? please help. It’s so confusing po. thank you admin.
From that letter, let’s discuss the following topics as they relate to the Pag-IBIG Overseas Program and the regular Pag-IBIG membership a.k.a. the Pag-IBIG I.
- POP vs Pag-IBIG I – Know the Difference
- The past contributions
Let’s elaborate each of these subjects.
The Pag-IBIG Overseas Program vs The Pag-IBIG I – What’s the Difference?
You may not know it yet, but you can contribute to the Pag-IBIG Fund in the following manner:
- Pag-IBIG I — This is the regular Pag-IBIG membership. During the inception of the Home Development Mutual Fund, this is the only membership type that’s available. As time passes, the program has grown to offer special service coverage for the Filipino workers based abroad. They rarely call it Pag-IBIG I now, but it got the name because the organization has introduced the Pag-IBIG II program.
- Pag-IBIG II — This is a savings program, which is supposedly offering a higher rate on your money compared to the annual dividend earnings of your Pag-IBIG I money. You can only participate with Pag-IBIG II if you are a member of the Pag-IBIG I.
- Pag-IBIG Overseas Program — Abbreviated as POP, this program was originally intended for the overseas Filipinos who wanted to become members of the Pag-IBIG Fund. This one is different and separate program from Pag-IBIG I.
(Related topic: Please check our previous article, which discusses in some details the POP Program.)
However, since the passage of the Home Development Mutual Fund Law of 2009, where OFWs are already required to become members of the Pag-IBIG Fund, this program has been relegated to the side.
Important Tip: OFWs who are not yet members of the Home Development Mutual Fund should choose to enrol in the regular Pag-IBIG Program and not the POP. This is the only kind of membership required of you. With this program, you are already entitled to all of the benefits available to Pag-IBIG Fund members.
The Past Contributions
This scenario is very common: Before going abroad to work as an OFW, most Filipinos are already members of the Pag-IBIG especially those who have work experiences locally here in the Philippines. By the time they go overseas, they lose track of their membership and just forget about the whole thing — no more updated contributions; any existing Multi-Purpose Loan obligation is forgotten, etc.
If this is your case, remember the following:
- All your past contributions to the Pag-IBIG Fund will stay there and will continue to accumulate dividend as the time passes, unless you happen to have an MPL Loan which you are not paying anymore.
- Non-payment of your MPL puts a lien on your Total Accumulated Value (TAV) – that’s your money, contributions plus dividends. What will happen is that Pag-IBIG will use your TAV to pay for your personal loan. (That’s the reason why you are only granted a percentage of your TAV for your MPL loan.)
- You can always activate your regular membership by contributing anew.
If you have some more questions related to this topic, please feel free to use the comment form below. We may have to update this article depending on the questions that we get.
The title of the article has raised this question: Is it really worth joining the Pag-IBIG Overseas Program?
What do you think? You be the judge. Make sure you also read the related articles cited as links on this article. Don’t hesitate to send us your opinions.
“Joining The Pag-IBIG Overseas Program — Is It Really Worth It?” is written by Carlos Velasco.