COLLECTION AND REMITTANCE OF CONTRIBUTIONS OF PAG-BIG FUND MEMBERS

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Published — June 29, 2021

The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.

Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.

After reading Collection And Remittance of Contributions of Pag-Big Fund Members, also read Who May Register as A Member of Pag-Ibig Fund?

• Monthly contributions of employees to Pag-IBIG Fund shall be collected through payroll deductions

• All employers shall remit to the Pag-IBIG Fund their contributions and the contributions of their covered employees

• Self-employed and voluntary members may remit their monthly contributions on a monthly or quarterly basis

T he monthly contributions of members to the Pag-IBIG Fund (Fund) shall be collected. The manner of collections will depend on whether a member is an employee, a self-employed, or a voluntary.

How should the monthly contributions be collected?

The law says:

For employees who are members of the Fund, their monthly contributions shall be collected through payroll deductions by their respective employers. The employers are considered the agent of the Fund and the employee (member).

If a member avails of any loan from the Fund and the member consents in writing to amortize or pay the same through salary deductions, the employer shall be duty-bound to faithfully implement the same and shall continue to do so until the loan is fully paid. Until the loan is fully paid, the employer shall not discontinue the salary deductions without the prior written consent of the Fund.

If a member-borrower who has previously consented to amortize or pay his loans through salary deductions resigns or otherwise separates from the service of the employer, the employer shall be bound to inform the Fund of such resignation or separation immediately upon notice thereof, but not later than thirty (30) days from the effectivity of said resignation or separation.

Once the employers were able to collect the monthly contributions and monthly amortizations if any, they are bound to remit the same to the Fund within fifteen (15) days from the date the same was collected unless a period is previously agreed upon between the employer and the Fund, or within such period as the Fund may prescribe otherwise.

How should the monthly contributions of the self-employed and voluntary members be remitted?

The law says:

Self-employed and voluntary members may remit their monthly contributions on a monthly or quarterly basis, provided that in the latter case payments shall be remitted before the 10^th day of the beginning month of the succeeding quarter. Monthly remittances shall be made directly to the Fund before the 10^th day of the following calendar month.

 

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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.

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