Home news What is Pag-IBIG Fund Condonation Program

What is Pag-IBIG Fund Condonation Program


One of the objectives of President Duterte is to allow Filipino workers to enjoy the benefits offered by the government. Thus, he directed the Pag-IBIG Fund to help particularly the underserved sector to avail affordable housing.

To abide with the directives of the President, the Pag-IBIG Fund offers a condonation program for those employers and companies that have not remitted or paid their contributions. The condonation program gives a chance to employers to settle their payments without the penalties. The payment under the condonation program is divided within 2 years.

Who are the beneficiaries of the condonation program?

The main beneficiaries of the Pag-IBIG condonation programs are businesses and companies that was unable to deduct the employee’s counterpart for the Pag-IBIG contributions or the employer counterpart.

However, employers who deducted the employee’s share but didn’t remit the contributions to Pag-Ibig Fund are not qualified to avail the condonation program. Rather, these employers will be charged for estafa.

The penalty that an employer would pay for failure to remit the Pag-Ibig contributions is 18% annually. To avoid paying the total accumulated amount of penalty, the employers should file their applications for condonation program. This will also spare them from criminal liability cited in RA 9679.

How to avail the condonation program?

Employers who want to avail the condonation program should update their records through the Pag-Ibig online registration system (if not registered yet). They can get the application form from any Pag-Ibig branches nationwide and submit the accomplished form in the branch that covers their place of business.

The condonation program became effective on August 26, 2017 and employers should take the chance to avail the program. Otherwise, if the employer won’t remit the contributions, it will affect the employees, thus makes them disqualified to avail Pag-Ibig benefits like calamity loan and housing loan.

Therefore, employers should be responsible to remit the contributions especially if they had deducted the employee’s counterpart from the salary.


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