Since January 2010, Republic Act Number 9679 or the “Home Development Mutual Fund Law” has been implemented, expanding the mandatory coverage of HDMF or Pag-IBIG Fund to all overseas Filipino workers (OFWs). Meanwhile, Filipino immigrants, permanent Filipino residents abroad, and Filipinos naturalized in other countries may opt for voluntary membership with the agency.
Here in Abu Dhabi, most of the Filipino community are members of Pag-IBIG Fund, making regular contributions and benefiting from the agency’s programs and services. They are also able to pay Pag-IBIG contributions in various ways.
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Abu Dhabi OFW’s Guide to Paying Pag-IBIG Contributions
In this article, let us review what Pag-IBIG is all about, and how OFWs in Abu Dhabi can pay their monthly contributions.
What is Pag-IBIG?
Pag-IBIG Fund is a government-run corporation that is overseen by the Department of Human Settlements and Urban Development (DHSUD). It provides affordable housing loans as well as savings programs for members, which include OFWs. In case you were wondering, the acronym Pag-IBIG stands for “Pagtutulungan sa kinabukasan: Ikaw, Bangko, Industriya, at Gobyerno.”
Vision and Mission
According to its official website, the vision and mission of Pag-IBIG Fund are as follows:
Vision. “For every Filipino worker to save with Pag-IBIG Fund, to achieve their dream of home ownership, and to improve their quality of life.”
Mission. “To generate more savings from more Filipino workers, to administer a sustainable Fund with integrity, sound financial principles, and with social responsibility, and to provide accessible funds for housing of every member.”
Programs and Benefits
To its members, the Pag-IBIG Fund offers different kinds of programs and benefits, such as savings and loans.
Pag-Ibig I Savings
The Pag-IBIG I Savings Program, a.k.a. “Regular Savings,” is where members’ monthly contributions go. Compared to banks, the program offers higher annual dividend earnings. For OFW members, the regular monthly contribution is PHP 200. When a member retires, he/she is entitled to receive the Total Accumulated Value (TAV), which includes all of his/her monthly savings (or contributions), employer counterpart (if any), and dividend earnings.
Modified Pag-IBIG 2 (MP2) Savings
Modified Pag-IBIG 2 or MP2 Savings is a voluntary program for Pag-IBIG Fund members who want to save more and earn higher dividends, in addition to their Regular Savings. MP2 earns a higher dividend rate than Pag-IBIG I. For a minimum contribution of PHP 500 per month, members can watch their savings grow, and withdraw it after a period of five-years (maturity).
Housing Loan
The Pag-IBIG Fund Housing Loan is offered to members, enabling them to borrow up to PHP 6 million at low interest rates. This loan may be used for different purposes, such as: buying a residential lot; buying a residential house and lot, constructing a house, improving a house, refinancing an existing housing loan, or a combination of loan purposes.
Multi-Purpose Loan
As the name suggests, Multi-Purpose Loan (MPL) is a cash loan designed for various needs, including: minor home improvements, children’s tuition/educational expenses, additional capital for small business, and so on. Members can borrow up to 80 percent of their Regular Savings, and the loan can be repaid over a maximum period of 24 months or two years.
Calamity Loan
Pag-IBIG Fund members who are residing in areas that are under a state of calamity, or those who have been affected by natural disasters, may apply for this loan. The Calamity Loan aims to provide immediate financial assistance to these members, as they recover from the effects of natural calamities.
For this loan, members can borrow up to 80 percent of their Regular Savings, to be repaid over 24 months (two years) or 36 months (three years). The first payment is usually deferred.
Health and Education Loan Programs (HELPs)
Pag-IBIG’s Health and Education Loan Programs (HELPs) is offered to members who need assistance in covering their (or their families’) health and educational expenses. Similar to other loans, they can borrow up to 80 percent of their Regular Savings. To simplify the process, funds are credited directly to hospitals and schools that are accredited by the program.
Video: Pag-IBIG Programs
To have a better idea about Pag-IBIG and the different programs it offers, check out this video shared by POLO Abu Dhabi on YouTube:
How to Pay Pag-IBIG Contributions
Members can pay their Pag-IBIG contributions online or offline. For offline or “over the counter” payments, they can go to the nearest Migrant Workers Office (MWO), or to a bank/remittance company that is accredited by Pag-IBIG.
The banks and remittance companies that accept Pag-IBIG contributions abroad are: Asia United Bank (AUB) and its collecting agents; Philippine National Bank (PNB) and its collecting agents; CashPinas collecting agents; iRemit, Inc. Offices and its collecting agents; and Ventaja International Corporation collecting agents.
When you go to a bank or remittance company, ask for the Remittance Application Form, fill it out, and submit the necessary documents (e.g. passport, ID card). Be sure to tell the branch staff that you would like to pay for your Pag-IBIG contribution.
Pag-IBIG Remittance Centers in UAE
For Filipinos based in the UAE, here is a list of banks and remittance companies where you can pay your Pag-IBIG contributions. The following list includes companies with branches in Abu Dhabi and Dubai; they have partnered with either PNB, AUB, iRemit, or Ventaja as accredited collecting partners.
- Abu Dhabi Marketing Office
- Ahalia Exchange Bureau
- Al Ahalia Money Exchange Bureau
- Al Ansari Exchange
- Al Bader Money Exchange
- Al Fardan Exchange
- Al Fuad
- Al Ghurair International Exchange
- Al Rostamani International Exchange
- Delma Exchange
- Deniba International Exchange LLC
- Dubai Representative Office
- Economic Exchange Center
- Emirates India International Exchange LPC
- GCC Exchange
- Index Exchange LLC
- Joyalukkas Exchange
- LM Exchange LLC
- Lari Exchange
- Leela Megh Exchange Co LLC
- Lulu Exchange
- Malik Exchange
- Multinet Trust Exchange
- National Exchange Co – UAE
- Onyx Exchange
- Orient Exchange Co LLC
- Pinoy Express Hatid
- Progoti Exchange
- Send Exchange EST
- UAE Exchange Centre LLC
- Wall Street Exchange Centre LLC
How to Pay Pag-IBIG Contributions Online
These days, Pag-IBIG members have the option of paying their contributions online through Virtual Pag-IBIG. This is an online portal where members can access various services, including: payment of contributions and loans; viewing savings and loan records; scheduling appointments with Pag-IBIG; chatting with a Pag-IBIG fund services agent; and more.
To use this portal, you would need to create a Virtual Pag-IBIG Account by going to its official website. You can also go to the nearest Pag-IBIG Branch for assistance. After signing up and creating an account, you can start paying contributions online, with options including bank cards (Visa or MasterCard), GCash, or Maya.
Contact Information: MWO Abu Dhabi
For more information about Pag-IBIG contributions and related services, you can get in touch with the Migrant Workers Office (MWO) through the following contact details:
Address: W-48, Street No. 8, Sector 2-23, Plot 51, Al Qubaisat – Abu Dhabi
Telephone: +971 56 270 9157
Email: mwo_abudhabi@dmw.gov.ph
Website: https://poloabudhabi.weebly.com/
Facebook: https://www.facebook.com/poloabudhabi2019/
Google Map Location:
Final Thoughts
By becoming a Pag-IBIG Fund member, OFWs can avail of affordable housing loans, multipurpose loans, and other financing services. They can also take advantage of the high dividends offered by the agency’s Regular Savings and MP2 Programs.
Indeed, when it comes to financing, OFWs have many options to choose from, depending on their needs and preferences. If you are planning on getting a loan, read this article about bank loans in Abu Dhabi that you can apply for.