Pag-IBIG urges employers to avail of penalty condonation

MANILA, Philippines — The Home Development Mutual Fund, commonly known as Pag-IBIG, is urging employers to avail of its penalty condonation program and clear out their delinquencies.

Pag-IBIG called on employers with unremitted contributions for their employees to apply for the penalty condonation program and settle their obligations, both prior and during the pandemic.

Availment of the condonation program will allow employers to be free from any monthly penalty charge on delayed remittances.

Housing chief and Pag-IBIG Fund board of trustees chair Jose Rizalino Acuzar said the program would ensure that more Filipino workers can enjoy the benefits of being a Pag-IBIG member.

The Pag-IBIG charter states that employers are responsible for the registration and remittance of their employees’ mandatory monthly Pag-IBIG contributions.

These consist of the employee’s contributions and the employer’s counterpart share.

With the penalty condonation program, eligible employers can now settle their employees’ unremitted Pag-IBIG contributions without penalty charges.

Pag-IBIG Fund CEO Acmad Rizaldy Moti, for his part, said the program would aid in boosting economic activity.

“Aside from having the penalty charges on their delayed remittances 100 percent condoned, employers who would be unable to settle their obligations in full may also opt for a payment plan that has a low monthly interest charge of 0.5 percent,” Moti said.

On the other hand, if the unremitted contributions being settled are those during the pandemic, the interest charge on payment plans will be waived.

Moti maintained that the latest condonation program is more extensive as Pag-IBIG seeks to provide assistance to the business community.

With the program’s favorable terms, employers are provided the means to update the monthly contributions of their employees, while maintaining a healthy cash flow to sustain their operations,” Moti said.