THE Home Mutual Guarantee Fund (HMGF), popularly known as Pag-IBIG Fund, will give a dividend of 7.83 percent for the year 2017 as declared by its chief executive officer.

Victoria dela Peña, Pag-IBIG vice president for the Visayas, said if a member is classified as Modified Pag-IBIG 2 (MP2) because he contributed P500 a month or more, it’s “plus point five,” which means the dividend earning will be 8.3 percent.

Dividends will vary, and those in MP2 will have higher yields.

She said those who did not withdraw their contributions after maturity will enjoy the annual dividends.

Dela Peña said one advantage in Pag-IBIG’s income is that it’s tax-free, unlike in the banks and other financial institutions, which are required to deduct withholding tax.

Savings upgrade

She said they are encouraging members to become Modified Pag-IBIG 2 members, especially since contributions remain at P100 per month, plus the employer’s counterpart.

“Due to the upgraded savings, we are able to fund our loan programs like housing and multipurpose loans. If the other government agencies (contributions) increased, Pag-IBIG Fund stays at P100 per month,” Dela Peña said.

On the other hand, Dela Peña said they are recruiting other working groups, like those in the informal sector such as vendors and drivers, to be Pag-IBIG members.

Dela Peña said the interest of their housing loans was further reduced to 5.5 percent per annum, lower than the six percent charged by banks. (EOB)