The
Home Development Mutual Fund (HDMF, formerly Pag-IBIG fund) is a mutual
provident savings system for employees. The Fund offers its members the
following benefits:
●
Savings;
The total amount of employee and employer’s contribution
will be credited to TAV (Total Accumulated Value). There are conditions on when
a member can claim TAV but basically you can claim the total amount upon
reaching the mandatory retiring age 65.
● Short
Term Loans;
●
Housing Programs;
The
employer must remit to the HDMF:
● The
employee's contribution to the HDMF, which the employer must deduct from the
employee's salary;
● The
employer's share of the contribution to the HDMF;
Refusal
or failure (either without lawful cause, or with fraudulent intent) to comply
with the provisions of the HDMF law and its pertinent rules and regulations
(particularly with respect to the registration of employees, collection and
remittance of employee and employer contributions, or remitting the correct
amount due) can leave the employer liable to a fine and/or imprisonment.
Employers in breach of the provisions concerning HDMF can also be liable for
civil claims.
Notes: I
think the interest rate of HDMF housing loan is not low enough considering that
it’s a government guaranteed fund.