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Development
Fund Law
RA 9679
Obligations
and Rights of
Employees and
Employers
Roentgen Jude Paolo L
Ignacio
Obligations of Employees
Under RA 9679
 Monthly Contribution (sec.7)
 Employees earning not more than 1,500
pesos per month- 1%
 Employees earning more than 1,500 pesos
per month- 2%
Obligations of Employers
Under RA 9679
 Monthly contribution of 2% of the monthly
compensation of all covered employees
(sec.7)
 Keep an employment record and report
employee whereabouts (sec.24)
 Public sector employers must provide the
payment of contributions in their annual
appropriation
Matters on employer
obligations
 The term employer under this act includes
both employers in the public and private
sectors.
 Maximum monthly compensation to be used
in computing employee and employer
contributions shall not be more than 5,000
pesos (sec.7)
 An employer shall not deduct, directly or
indirectly, from the compensation of its
employees or otherwise recover from them,
the employer’s contribution with respect to
such employees (sec.7)
Matters on employer
obligations
 Non-payment of employee contributions
would subject the employer to a penalty
of 3% per month of the amounts payable
from the date the contributions fall due
until paid (sec. 23)
 If the employer is from the public sector,
penal sanctions shall be imposed when
there is delay in the remittance of the
required contributions or failure to include
the contributions on time. (sec. 23)
Matters on employer
obligations
 The heads of offices and agencies shall
be administratively liable for non
remittance of the required contributions
to the fund (sec. 23)
 Refusal or failure to comply with the
provisions of this act shall constitute an
offense punishable by a fine of not less
than nor more than twice the amount
involved or imprisonment of no more than
6 years or both fine and imprisonment, in
the discretion of the court (sec. 25)
Rights of Employees under RA
9679
 Withdrawal of total accumulated value of
their contributions to the fund (sec.8) or
dividends there to (HDMF circular 274, G-
2)
 Housing loan (sec.11)
Total Accumulated Value
(TAV)
 It consists of:
 Member’s accumulated contributions
 The employer counter part if any
 Dividend earnings credited to his or her
account (HDMF circular no. 274, G-1)
TAV Benefits
 Requisites of Withdrawal of TAV benefit
(sec.8):
 15 years of continuous membership
 Member must not have any outstanding
loans with the fund
Note: membership to the fund shall be for 20
years, compulsory retirement is at 65, carries
with it the withdrawal of the fund
TAV Benefits-Dividend
(HDMF Circular 274)
 only applicable to members with
outstanding TAV as of the year end shall
be entitled to dividends for that particular
year
 Distributed annually and credited to a
member’s TAV
Housing loan eligibility
 Section 11 of RA 9679 requires that a
member be of good standing to be
eligible for a housing loan
 The same provision tasks the board of
trustees to formulate terms and conditions
for such eligibility
 The eligibility requirements are found in
the Approved Citizen’s Charter (Housing
Loan Availment)
Approved Citizen’s Charter (Housing Loan
Availment)
Procedures
for Availment
Membership registration (HDMF circular
no. 274)
 Online registration
 To be done online using the membership
Registration system
 Member shall fill out the computerized
Member’s Data Form
 Manual Registration
 Member’s Data form to be accomplished in
hard copy
 Those with lacking information shall be
returned for completion
Procedure to claim TAV
 Basic requirements
 Completed Application for provident
benefits claim form
 Original and photocopy of Pag-ibig loyalty
card and one valid ID or two valid ID’s for
those without a loyalty card
Procedure to claim TAV (additional
requirements)
 For retirement
 for private employees who are at least 45
years old- photocopy of notarized
certificate of early retirement
 For government employee availing of the
optional retirement- GSIS Retirement
Voucher
 For members of the AFP- Photocopies of the
order of retirement and statement of
service
 For members of the PNP, BJMP and BFP-
Photocopies of the order of retirement and
service record
Procedure to claim TAV (additional requirements)

 ForPermanent total disability or

termination from the service by reason of
health
 Photocopy of the physician’s certificate or
statement
 ForCritical illness of member of any of his
immediate family member
 Photocopy of the physician’s certificate or
statement
 There must also be proof of relationship to
the pag-ibig fund member
Procedure to claim TAV
(additional requirements)
 Photocopy of passport with
immigrant/residence/settlement visa or
any of its equivalent
 For those till based in the Philippines:
sworn declaration of intention to depart
from the Philippines Permanently
(notarized)
Procedure to claim TAV (additional requirements)
 For death
 Photocopy of the member’s death certificate
issued by the PSA or LCRO
 Proof Surviving Legal heirs (notarized)
 If deceased member is single, photocopy of the
certificate of no marriage
 If deceased member is married, photocopy of
marriage contract issued by PSA or LCRO
 If deceased ember has children, photocopy of the
birth certificate issued by PSA or LCRO, baptismal
or confirmation certificate of all children
 If deceased member has children who are below
18 or suffering from physical or mental
incompetence, notarized affidavit of guardianship
 Proof of relationship to the deceased member
Procedure to claim TAV
 Towithdraw such contributions, the stated
requirements are to be submitted to a
Pag-ibig Branch, ideally the branch that
keeps your membership recprd
To Apply for a Pag-Ibig loan
To Apply for a Pag-Ibig loan
Urban
Development
and Housing
act
RA 7279
Benefits-Section 25
 Land surveys and titling at a minimal cost
 Liberalized terms on credit facilities and
housing loans and 100% deduction from
every homebuyer’s gross income tax of all
interest payments made on documents
loans incurred for the construction or
purchase of the homebuyer’s house
 Exemption from payment of documentary
stamp tax, registration fees and other fees
for the issuance of transfer certificate of
titles
Benefits-Section 25
 Basic service as provided for in section 21
 Potable water
 Power and electricity and an adequate
power distribution system
 Sewage facilities and an efficient and
adequate solid waste disposal system
 Access to primary and transportation
facilities
Procedure for
Availment of
Benefits
IRR governing the
registration of socialized
housing beneficiaries
Place of registration
 Registration shall be conducted only at
the official barangay registration centres
designated by the mayor as
recommended by the barangay
chairman.
Procedure for actual registration
1. Registrant presents any identification and
proof of residence
2. Registrant pays a registration fee of 10 pesos
and is issued official receipt therefor and a
registration form which shall have to be
accomplished in triplicate
3. Registrar writes the control number on the
form corresponding to the registrant’s
control number on the logbook
4. Registrant signs the logbook
5. Registrant returns the accomplish form, he
also signs on the log book for accomplished
form, the registrar signs the logbook as well
opposite the registrant’s signature