HDMF

(Home Development Mutual Fund)

Sa PAG-IBIG ang pinaghirapan may katuparan
 THE BIRTH OF THE HOME DEVELOPMENT MUTUAL FUND

The birth of the Home Development Mutual Fund (HDMF), more popularly known as the Pag-
IBIG Fund, was an answer to the need for a national savings program and an affordable shelter
financing for the Filipino worker. The Fund was established on 11 June 1978 by virtue of
Presidential Decree No. 1530 primarily to address these two basic yet equally important needs.
Under the said law, there were two agencies that administered the Fund. The Social Security
System handled the funds of private employees, while the Government Service Insurance System
handled the savings of government workers.
The Home Development Mutual Fund more popularly known as the Pag-
IBIG Fund, is a Philippine government-owned and controlled corporation under
the Housing and Urban Development Coordinating Council responsible for the
administration of the national savings program and affordable shelter financing for
Filipinos employed by local and foreign-based employers as well as voluntary and self-
employed members.
 Membership

• A private employee,
• A household helper earning at least ₱1,000 a month.
• A Filipino seafarer upon the signing of the standard contract of
employment
 Membership

• A self-employed person regardless of trade, business or occupation,

• An expatriate who is not more than sixty (60) years old and is
compulsorily covered by the Social Security System (SSS),
• An expatriate shall refer to a citizen of another country who is living
and working in the Philippines.
 Membership

• All employees who are subject to mandatory coverage by the

Government Service Insurance System (GSIS
• Uniformed members of the Armed Forces of the Philippines, the
Bureau of Fire Protection, the Bureau of Jail Management and
Penology, and the Philippine National Police;
• Filipinos employed by foreign-based employers.
 Voluntary Membership
• Non-working spouses who devote full-time to managing the household
and family affairs,
• Filipino employees of foreign government or international
organization,
• Employees of an employer who is granted a waiver or suspension of
coverage by the Fund under RA 9679;
 Voluntary Membership

• Leaders and members of religious groups;

• A member separated from employment,
• Public officials or employees who are not covered by the GSIS
• Such other earning individuals/groups as may be determined by the
Board by rules and regulations.
 Benefits of the fund
• Housing Loan

The most popular program benefit of the Pag-IBIG Fund offers

assistance to its members by providing cheap financing for their housing
needs. HDMF accomplishes this by working in partnership with the
local Real Estate Developers and arranging affordable loans to real
estate buyers (Pag-IBIG members).
 Benefits of the fund
• Short Term Loan

Multi-Purpose Short Term Loan

This program aims to provide financial assistance to members for
house repair, minor home improvement, home enhancement,
tuition or educational expenses, health and wellness, livelihood; or
other purposes.
 Benefits of the fund
• Short Term Loan

Calamity Loan
For members affected by unforeseen calamity like flood, fire,
tropical cyclones/ typhoons, volcanic eruption and other similar
cases. Members can borrow up to 80% of their Total
Accumulated Value (TAV) subject to the terms and conditions of
the program.
 Benefits of the fund
• Provident Savings
Membership contributions to the Pag-IBIG fund is a member's individual
savings, which a member can withdraw at the maturity date. Pag-IBIG
Fund makes clear that members' contributions, plus that their employer
will earn dividend. All that money, called Total Accumulated Value
(contributions plus dividend) will be available when it reaches maturity.