What will happen to your PAG-IBIG/HDMF membership contributions after you become an OFW?

Before I become an OFW, I’ve been working in the Philippines for 4 years and 3 months. During this period, my monthly gross salary has been deducted by 100.00 pesos as contribution for my HDMF (Home Development Mutual Fund) or commonly known as PAG-IBIG Fund. This has been mandatory now as a Law in the Philippines. Actually, the actual amount credited to my PAG-IBIG account is 200.00, with the other 100.00 shouldered by my employer. This scheme is implemented on all other companies as part of this law. The amount of 200.00 is the minimum contribution that a member should pay monthly. For the matrix of the contributions, I will discuss it soon as I go along with this blog.

Additional information:(The exemption of this mandatory PAG-IBIG contribution applies only to those with monthly gross salary below 4,000.00 pesos. However, the employee has an option to be a PAG-IBIG member but under a voluntary membership status and can also pay with the minimum contribution)

Now, let’s go back to my original topic. When I did a rough computation of the total contributions I have accumulated during my employment in the Philippines, it came out to be about Php 10,200.00 (excluding the earnings). This amount can go a long way if I can claim it. So, I sent an e-mail to PAG-IBIG in this address (publicaffairs@pagibigfund.gov.ph). My e-mail contains plain questions which are:

What will happen on my accumulated contributions? Can I claim them?

I’m somehow surprised that I received a reply the next day. The content of the reply is posted below:

Good day Mr. Train. Your contributions from April 2004 to July 2008 remain as your Total Accumulated Value (TAV) with the Pag-IBIG Branch where your previous company, remits.

You may only claim your TAV upon the occurrence of the following (whichever comes first):

• MATURITY, where a member has completed 20 years of active fund membership and 240 contributions;

• RETIREMENT, where a member has reached the mandatory retirement age of 65, the optional retirement age of 60, or has opted to avail of his company’s early retirement at age 45;

• PERMANENT DEPARTURE FROM THE COUNTRY

• PERMANENT/TOTAL PHYSICAL DISABILITY

• INSANITY

• TERMINATION FROM SERVICE BY REASON OF HEALTH

• DEATH OF MEMBER.

Since you are currently based abroad, you have the option of becoming a member under the Pag-IBIG Overseas Program (POP), a voluntary savings program that is designed for Filipinos working abroad (either sea-based or land-based) or residing abroad.

It’s a pleasure to serve you. Thank you.

Public Relations and Information Services (PRISG)

~cas

It’s been my nature that if I’m inquiring for something, I’m not contended with a scripted answer. This is somehow a similar case on the reply. Although it’s the actual conditions if you check their official website, what I expected is somehow like a personal explanation. So, I decided to send another e-mail but this time I added two additional e-mail addresses. (piog@pagibigfund.gov.ph, pagibigoverseas@gmail.com) These e-mail addresses belong to Pag-IBIG International Operations Group (PIOG). The actual e-mail is posted below:

To Whom It May Concern,

Thank you for the prompt response. Unfortunately, there are still some points that are not clear to me. Actually, I am already a member under the PAG-IBIG Overseas Program (POP) since November 2008 (membership no:TXXXXXXXXX). My inquiry is about my contributions on my previous membership status (Locally employed from April 2004 - July 2008).

1. What will happen on the said accumulated contributions (TAV) for I'm now under the POP membership?

2. Can I claim the said TAV because I am now under a new membership status?

3. If I can't claim it, will it (TAV) be added to my TAV in the POP membership?

Thanks in advance and more power.

Sincerely,

Angelo G. Train

Then, somebody by the name of Julieta L. Dela Cruz under the e-mail address jldelacruz@pagibigfund.gov.ph replied to my e-mail. To give due credit, it only took 2 days and I received her reply. Her reply was;

Hi. Your local membership with the Pag-IBIG Fund has a different program from the Overseas Program. You may withdraw your local contributions upon the occurrence of the 6 grounds for withdrawal which were discussed with you last time. Should you have further inquiry please don’t’ hesitate to e-mail us again.

Thank you.

Public Relations and Information Services Group

Not yet contended with the answer, I again sent another e-mail addressed only to her. My e-mail was;

Dear Maam,

Thanks for the response. Just a follow-up question, as you stated I can withdraw my contribution upon occurrence of the mentioned grounds.

Does my current status as OFW satisfies the third condition?

• PERMANENT DEPARTURE FROM THE COUNTRY

I just want to mention that my employment status with my employer here in Riyadh, KSA is PERMANENT employee.

Thanks again and more power.

Angelo G. Train

Do you think my third e-mail is somehow a dumb question? :) hehehe .. Well, she’s patient and understanding enough and replied to it.

Hi! With regards to your inquiry, you will qualify under the Permanent Departure ground if you’re an immigrant of that country, if not the funds will stay with us and will still earn until such time you can withdraw your contributions.

Thank you.

Public Relations and Information Services Group

So there you are, with those chains of e-mails, things became clear to me. (As we say in Filipino “Maliwanag pa sa sikat ng araw”). Well, I always believe that there’s nothing wrong in asking. As one quote in English says “It is impossible for a man to learn things he thinks he already knows”.

Now to summarize the whole thing;

I can still claim my previous contributions if I met one of the 6 conditions stated previously. (I just hope and pray that I can met either of the first three conditions and not with any of the other four). I can meet the first condition if in case I stopped working abroad as OFW and continued my previous membership status. Once it reached 240 contributions I can claim it as a Total Accumulated Value (TAV).

If you notice in this post, there is such a thing called PAG-IBIG Overseas Program (POP) mentioned several times. This topic, I will discuss on my next post, so better bookmark this page or subscribe to the feed to receive the notification once I updated this blog and posted the said topic.

I hope that you learned something from this entry. See you soon….and have a nice day.