Deduction of Arrears in "Pag-ibig" Fund Otherwise known as the Home Development Mutual Fund

August 20, 1986

OCA CIRCULAR NO. 9-86

 

The fund contribution to the Home Development Mutual Fund as mandated by P.D. 1732 were suspended as a temporary measure for the purpose of studying how the burden of lower income earners can be reduced and their benefits increased. Now that it has become imperative to maintain the Fund to expand and increase the benefits due to its members, Executive Order No. 35 has been issued effective August 1, 1986 amending certain provisions of P.D. 1732.

Section 5 of P.D. 1732 is hereby amended to read as follows:

"Sec. 5. Funds Contributions. — Covered employees and employers shall contribute to the Fund based on the Monthly Fund Salary of covered employees as follows:

Employees earning not more than P1,500.00 per month — One percent (1%);

Employees earning more than P1,500.00 per month — Two percent (2%);

All employers — Two percent (2%) of the Monthly Fund Salary of all covered employees.

For purpose of computing contributions, 'Monthly Fund Salary' shall mean basic monthly pay plus Cost of Living Allowances (COLA); Provided, however, that the maximum Monthly Fund Salary to be used in computing employee and employer contributions shall not be more than P5,000.00. The employer shall not be entitled to deduct from the wages or remuneration of, or otherwise to recover from, the employee the employer's contribution." casia

Considering that the effectivity date of said contribution is August 1, 1986 and that our payroll has been prepared in advance, all concerned are informed that arrears corresponding to two (2) months will be deducted from salaries for October and November, 1986 in addition to their monthly regular PAGIBIG contributions.

August 20, 1986.

(SGD.) LEO D. MEDIALDEACourt AdministratorOffice of the Court Administrator