The purpose of the Philippines’ Pag-IBIG fund, or the Home Development Mutual Fund, is to finance housing for workers in the Philippines and manage workers’ savings, states the fund’s website. The fund’s portfolio consists principally of Philippine government securities, short-term loans and investments in the housing sector.
The fund operates multiple programs, aimed at different groups of workers and providing different housing types, while focusing strongly on low-income housing, notes the fund’s website. The program for condominium housing, created in partnership with developers, offers members condominium apartments at accessible prices. Programs aimed at members with lower purchasing power include the Rent-to-Own program. The United Nations Human Settlements Program awarded the Pag-IBIG fund its Scroll of Honour award in 2006 for expanding access to affordable housing.
The Home Development Mutual Fund Law, signed in 2009, expanded mandatory coverage, reduced the fund’s tax burden and gave its trustees a greater degree of control, explains the fund’s website. Membership is now mandatory for many types of workers, including citizens of the Philippines working for foreign companies in the Philippines and members of its armed forces. Like many other Philippine government entities, the fund now enjoys tax-exempt status. Contribution rates for fund participants are at the discretion of the board of trustees.