What are the Benefits of being a Pag-IBIG Member?

Being a Pag-IBIG member is not just about paying your monthly contributions. You get to enjoy the perks of being a member if you know the benefits. OFWs should continue to pay their Pag-IBIG membership contributions as this is helpful for us to plan for our future.

Also Read: How to Pay SSS Contributions as an OFW in Qatar

For those who are not aware of the benefits of having your Pag-IBIG membership, this article will help you learn what you can do aside from paying your monthly payments. Make sure to keep this in mind so you can get the most out of your membership.

pag-ibig member benefits

How do you become a Pag-IBIG member?

So in case you are wondering what you can do to become a certified member of Pag-IBIG, there are two options for you. Essentially you can do this by being a “Contributor” and you can become a “Contributor” through these two ways: By Being Employed through a Company or By Volunteering to Be a Member:

  • By being employed.

You get to become a Pag-IBIG member by being employed. Typically, the membership comes along with your first employment. Since the law in the Philippines requires companies and employers to make payments for their employees’ SSS, Pag-IBIG, and PhilHealth, they are the ones who process the membership application of their first-time employees. All you have to do is to submit your application form and wait for your membership ID.

  • By volunteering to be a member.

Another way to become a Pag-IBIG member is to volunteer. You will have to pay for your contributions alone. Since you are either a self-employed or a volunteer contributor, you don’t have an employer to share your contributions with. To become a member, you will need to submit your application form to the nearest Pag-IBIG branch. From there, your application will end the moment you get your membership ID. You will then be permitted to pay for your monthly stake.

Also Read: How to Save Money as an Expat in Qatar

What benefits can I get from being a Pag-IBIG member?

So why should you contribute? Pag-IBIG is a government Savings Program and you will have a number of benefits available. One of the most popular benefit is being eligible to get a Pag-IBIG Housing Loan. After all, it is really a nice feeling to own your own house. Instead of paying somebody for your monthly house rent, you can basically use your money wisely and pay for your own home in monthly installments. So aside from this, once you become a Pag-IBIG member, there are benefits that you will surely enjoy. These are the following:

1. You get to save your money.

Your monthly contributions are not just payments. They are basically savings that you can withdraw after some time. Pag-IBIG invests the money you contribute and can double it as time passes by. This is why when you reach the age of 60 or 65, you will get a good amount of retirement funds. Your savings can earn more in Pag-IBIG than in banks and other financial institutions.

When you put your money in a bank, it could only earn less than 1% interest in a year. But, if you choose to continue contributing to Pag-IBIG, your money will double after some years, which is a good passive income already.

2. You can take out loans whenever you want.

By being a Pag-IBIG member, you can take out loans whenever you need them. Pag-IBIG offers different types of loans such as housing loans, calamity loans, and salary loans. You can qualify for any of the loans if you are a member for at least 3 years or have contributed at least 36 months to your account.

A housing loan can be borrowed by members who plan to buy a house. We’ve discussed this in a separate blog. Read it here if you want to know more about how you can apply for a housing loan.

Calamity loans can be taken out by members who need money for recovery while salary loans can be borrowed by those who need quick cash for their daily expenses or other purposes.

With Pag-IBIG, you can enjoy borrowing money without paying high interest. The interest of your loan depends on the type of loan you are going to take out and how long you are planning to pay it.

3. You can open additional savings accounts.

Another good benefit of being a Pag-IBIG member is that it allows you to open an additional savings account. You can join the MP2 program and save for as low as P500 pesos every month. What’s good about having an MP2 account is that your money grows year by year because of the dividends. Pag-IBIG has a track record of paying 6-8% dividends in a year. The rate of dividends will depend on the income of Pag-IBIG for a year. The higher the income of Pag-IBIG, the higher the dividends are.

4. Retirement fund

Once you are a member of Pag-IBIG already, there’s no need to open a separate account for your retirement. Your contributions can serve as your retirement fund. Pag-IBIG allows the withdrawal of contribution at the age of 60, which is optional, and at the age of 65, which is mandatory. If you want to get your retirement fund at the age of 60, you can request to take it out early.

5. Pag-IBIG ID card perks

Pag-IBIG also allows its members to apply for a Pag-IBIG card, which gives a lot of advantages to holders. Some of the perks you will get are discounts from medical institutions, pharmacies, optical clinics, restaurants, and spas. This can help you save a lot of money since the discount rates are high, ranging from 10% to 50%.

To get your Pag-IBIG ID card, you need to apply for it and go to the nearest Pag-IBIG branch. We also have a blog about the step by step guide for those who want to get this ID. Read it here if you want to enjoy its perks.

Reminder: Do Not Forget to Contribute

Personally, I am paying my Contributions via the company I work for. They deduct a portion of my salary every month as long as I’m employed.
OFWs normally pay as a voluntary member so please, please do not ever forget to contribute!
It is really important that we do not pass up the opportunity to fulfill our monthly contributions as this is, after all, for out future.”