OFW advance PAG-IBIG payment suspended by Binay

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Overseas Filipino Workers burden to pay the compulsory of the mandatory six-month advance contribution to PAG-IBIG Fund is currently suspended as ordered by Vice President Jejomar on Thursday. As remembered the issuance of POEA Memorandum Circular No. 06, Series of 2010 last July 7, mandated all out-bound OFWs a six months advance Pag-IBIG membership contributions. However, the migrants’ rights group considered the memorandum as additional burden that is unfair and unreasonable upon deployment for membership to the Home Development Mutual Fund (HDMF) or Pag-IBIG Fund.

Under POEA Memorandum Circular No. 06, which took effect on August 1, out-bound OFWs are mandated a fee of P600 as six months advance Pag-IBIG contributions. The fee also serves as a requirement for the issuance of an Overseas Employment Certificate that all land-based and sea-based OFWs must have to leave the country. The said certificate will not be issued upon failure to comply of this requirement.
Binay, as chair of the Housing and Urban Development Coordinating Council (HUDCC), chairs the Board of Trustees of PAG-IBIG Fund, said that he has already ordered Pag-IBIG and the Philippine Overseas Employment Administration (POEA) to review the basis for compelling OFWs to pay their contribution in advance.

“What is important is that government should assist our OFWs and should not be seen as further imposing burdens on them,” Binay said.

On Thursday, Binay directed the Home Development Mutual Fund (PAG-IBIG) and the Philippine Overseas Employment Administration (POEA) to suspend the implementation of the order requiring OFWs to advance their contribution to the housing fund before they can leave the country.

“Aside from reviewing the legal basis for the order, the concerned government agencies should hold more consultations with the affected sectors. There should be transparency in the process,” Binay stated.
“There are benefits to be derived from PAG-IBIG membership and this should be explained fully to our OFWs,” he added.

As head of PAG-IBIG’s Board of Trustees, Binay assured the OFWs that the matter will be given priority by his office. He also said the government will continue providing assistance to the OFWs instead of being a burden to them.

Concerned migrant workers groups, among them Migrante and the Blas F. Ople Policy Center, as well as associations of labor exporters, have questioned the directive.

Meanwhile, Migrante welcomed Binay’s move and reiterated their position that membership to the housing fund must not be compulsory but only optional.

“We urge VP Binay and PAG-IBIG to invite us for a dialog and consultation so that they could hear direct from the OFWs and their families our strong opposition against making it compulsory,” John Leonard Monterona, regional coordinator of Migrante Middle East Chapter said.

Reposted from filipinolifeabroad.com (August 16, 2010)