Sunday, June 2, 2013


Saving in mutual fund is now mandatory to all Overseas Filipino Workers. Before we are able to get our OEC, we need to be a member Home Development Mutual Fund or most commonly known as  PAG-IBIG. Some OFW's think that this saving system is another money making business for the Philippine government. Some will just comply and be a member just to get their OEC, but never funded for their PAG-IBIG Account. Some OFW's take this as additional expense to be included in their monthly budget. An OFW mentality that should be corrected.  PAG-IBIG overseas program is mandated by law to prepare for your retirement and you can have an opportunity to own our own house. There are many OFW's after more than 10 years of working abroad still don't have their own houses. Here are some more information you need to know about PAG-IBIG Fund.

What Philippine Law covers mandatory PAG-IBIG membership of OFW's?

This law is under Republic Act No. 9679 that aims to improve the lifestyle of Filipinos in providing fund for housing programs and implementing a nationwide saving system through PAG-IBIG Mutual Funds. R.A. 9679

What are the benefits of PAG-IBIG members?

1. Guaranteed savings by the Philippine government for your future.

Whatever happens to PAG-IBIG Funds, the government guaranties that all your contributions will be returned to you.Your monthly contributions or savings with PAG-IBIG Fund also earn annual dividends, TAX FREE. The dividend rate varies depending on the net income of PAG-IBIG at the year end.Assuming 5% dividend rate is given, please refer to the Table 1 provided below. (flyer is officially distributed by Abu Dhabi Philippine Emabassy)

2. Housing Program

An active OFW member of PAG-IBIG can easily avail the housing loan. A member should have at least 24 months contribution to avail the housing program. Members can apply up to Php3,000,000 housing loan depending on the monthly contribution, with low interest rate and low monthly amortization for 20-30 yeasr. Please refer to Table 2 provided above. Housing loan may be used for the purchase of residential house and lot,condo units, townhouse, construction or completion of residential unit on a titled  lot owned by the member and home improvement.

3. Short Term Loans (Multi-purpose Loan)

PAG-IBIG Fund also provides short term loans to cater your emergency needs like tuition fees, minor home repairs, capital for business, vacation budget, etc.. Below is a sample of how much money you can borrow from

Monthly Contribution
No. of Months
Amount of Multi-Purpose Loan*
P100 - P300
24 - 60  
61 - 120
P1,440 - P10,800
 P4,270- P25,200
P400 - P600
24 - 60
 61 120
P5,760 - P21,600
P17,080 -P50,400
P700 - P900
24 - 60
61 - 120
P10,080 - P32,400
P29,890 - P75,600
P1,000 - P1,200
24 - 60
61 - 120
P14,400 - P43,200
P42,700 - P100,800

The big issue of all kabayans, how or where to start?

Visit the Abu Dhabi Philippine Embassy and go directly to the first door on your left upon entering the embassy main entrance. Fill-up the PAG-IBIG Application form. Our kabayans will be assisting you there. After submitting the accomplished form with your original passport, they will give you your OFW PAG-IBIG Account Number. Kalas! You can now start saving your hard earned money. You can deposit it through UAE Exchange, Al Ansari, Al Falah Exchange, Al Ahalia Exchange.

You may contact these numbers for more information  - 971 2 639-0026/ 050 357 6308

Abu Dhabi-OFW-PAG-IBIG Fund for OFW


  1. I am glad to read this post, its a good one. I am always looking for quality posts and articles and this is what I found here, I hope you will be adding more in future. Thanks

    Hydra Village Abu Dhabi

  2. I am an OFW and have an existing housing loan. I bought this last 2010-January starting of my equity period and by November 2014, i will finish the first three years paying in Pag-ibig using my post dated check and the title will be transferred in my name and also others fees will be personally paid by myself. Before it was paid thru the developer and after paying 3 consecutive years, i will be the one who handle and pay this personally.
    What will I do if I am here in other country? Do I need to make a SPA for this? Or need to go back to Philippines to personally handle this?

    Please need your good assistance to settle this.

  3. I was surprised to learn the same about your blog--- I loved it.I am a big fan of your blog.i am so excited by read of your blog's content.really great post.Thanks for sharing.
    Arun Panchariya

  4. this is awesome! i was looking for a good and informative post regarding in that matter. it actually open myself about everything that i want to know. thank you and god bless.


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