Pag-IBIG Fund Condonation Program 2017

Good news for the micro and small businesses, companies, and employers who have not remitted their Pag-IBIG contributions in a long time.

This is your chance to settle your payments without having to pay your penalties.

With Pag-IBIG Fund’s new Condonation Program, your penalties will be waived. Depending on your balance, the Pag-IBIG Fund may also allow you to stagger your payments over a 2-year period.

Who can avail of the Pag-IBIG Condonation Program?

While the target beneficiaries of the Pag-IBIG Fund Condonation Programs are micro and small businesses, this program can also be availed by large corporations or small firms that did not deduct contributions from employees or remit the employer counterpart.


According to Acmad Moti, the CEO of Pag-IBIG Fund, employers who deducted Pag-IBIG Fund Contributions from their employees’ salary but did not remit to Pag-IBIG Fund are disqualified to avail of the Condonation Program. These employers may be liable for the crime of ESTAFA.

How much is the Penalty for Non-remittance of Pag-IBIG Contributions?

The penalty for failing to remit Pag-IBIG Contributions is 18% per year.

A small business employer who has not remitted her employees’ Pag-IBIG contributions from 1995 up to this date, is now going to pay almost P1.5 million pesos. More than P900,000 of that amount is her penalty for non-remittance of contributions.

If she avails of the Pag-IBIG Condonation Program, she will not have to pay the P900,000 penalty anymore.

That’s how much you can save if you take advantage of this condonation program. If you have a similar case or you know someone or a company who has not been remitting their contributions to Pag-IBIG, tell them about this news or share this article with them. (source)


How does non-remittance of Pag-IBIG Contribution affect the Employees? 

If the employer does not remit the contribution of its employees to Pag-IBIG Fund, they will not be able to avail of Pag-IBIG Benefits which include the following:

  • Calamity Loan
  • Housing Loan

The calamity loan could be a great help to Pag-IBIG members in case a calamity or disaster strikes the country.

The housing loan, on the other hand, could also be a big help to members when they decide to have their own house and lot or any real estate property in the future.

What do delinquent employers need to pay? 

The entities that will avail of the condonation program by Pag-IBIG Fund will have to pay the employer contribution and the actual dividends that should have been enjoyed by their employees if they were enrolled with Pag-IBIG Fund.

Why do government agencies like Pag-IBIG and SSS offer Condonation Programs?

The Pag-IBIG Fund gives delinquent employers a chance to pay off their previous contributions minus their penalties.

With this condonation program, Pag-IBIG expects around 300,000 to 400,000 small businesses who will avail of this and this is seen to generate an additional P2 Billion pesos revenue for the fund which will then be used to provide more services and assistance to its members and for the development of more projects.

The Social Security System or SSS, on the other hand, offered their Condonation Program last April 2016 to April 2017. This was also known as The Loan Restructuring Program (LRP) which aimed to alleviate the burden of calamity-stricken workers, who face difficulties in paying their SSS loans after suffering from natural and man-made disasters in recent years.

With the SSS LRP, delinquent loan borrowers were given a chance to pay off their balances through a restructured payment scheme wherein their penalties were waived. This program made it easier for delinquent members, including my Aunt, to pay their loans. From P60,000 total loan balance, she only had to pay P30,000 with the penalties already deducted. She’s now debt-free and is now preparing to file her SSS retirement benefit.

According to Emmanuel F. Dooc, SSS President and CEO, the total condoned amount for more than 850,000 members who availed of the SSS LRP reached P13.83 billion pesos over the one-year period the program was offered.

Clearly, another reason why Pag-IBIG and SSS offer Condonation Program is to collect massive loan payments which will help in increasing their respective agency’s revenues.

Click here to readPag-IBIG Fund Investment Program

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