If you notice, before you can actually start reporting for a new job, human resource personnel of the company would ask you if you have a Pag-Ibig number, otherwise they will ask you to apply for one or they will do it for you. It is one of the requirements that a new employee must accomplish. While we know that a minimal amount is being deducted from our salary to be contributed to the Pag-Ibig fund, we do not have a clear understanding of what it has for us or what it has to offer to its members. All we know is that we can seek its aid by allowing us to apply for a housing loan and nothing else. But the truth of the matter is that, it has more than what we think of and expect for.

As a result of the passing of RA No. 9679 or the Home Development Mutual Fund Law of 2009, Pag-IBIG Fund was created. Pag-IBIG stands for Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno. Its primary object is to provide housing benefits to Filipinos in harmony with the policy of the state to strengthen public welfare. A fund is created which will serve as a government financial institution where members are required to contribute to finance low-cost or socialized housing.

Who are Covered

Contribution to Pag-IBIG fund is mandatory to the following:

1. Employees covered by the Social Security System and/or Government Service Insurance System
2. Employers
3. Other working groups
4. OFWs
5. Filipinos employed by foreign-based employers, locally or abroad

Employees receiving a salary of less than four thousand (4,000) pesos can also contribute to the Fund voluntarily. All others are not restricted to apply for membership to Pag-IBIG Fund.


A Pag-IBIG member who have contributed to the Fund for at least twenty-four (24) months can avail of loan benefits.

Short Term Loans. An active Pag-IBIG member can apply for a Multi-Purpose Loan in case money is needed for medical, educational or house repair and improvement and other basic needs. The other short term loan which a member can take advantage of is a Calamity loan, only if affected by a recent calamity.

Housing Loan. A member must not be more than sixty-five (65) years old can avail of a housing loan provided that he pass the background investigation conducted by Pag-IBIG and he has no outstanding housing loan or arrears in Multi-Purpose loan.

Withdrawal of Savings

A member can also withdraw the savings he has in the Fund under several circumstances like death, retirement, immigration to other countries, voluntary withdrawal or other causes which the Board of Trustees may deem reasonable.