No photo available

34 views - 1 month ago

Investors in Pag-IBIG get 6.12% dividend

THE Home Development Mutual Fund (HDMF), most popularly known as PagIBIG Fund, has given 6.12 percent dividend to investors and savers under Modified PagIBIG 2 (MP2) program.

PagIBIG Fund Vice President for the Visayas and Mindanao Rio Teves said that if investors deposited their money in the bank, the income is interest. But in MP2, it is called dividend and tax free.

Teves said that most of those who received dividends are investors and regular members who are saving their money at MP2.

“There are now several MP2 depositors because of our campaign that former PagIBIG members, pensioners and retirees invested or savde their extra money at MP2,” Teves said.

He said that if a person saves money in the bank, it earns only a little with as low as 1.5 interest per year subject to 20 percent tax by the Bureau of Internal Revenue (BIR). In PagIBIG’s MP2, the dividend for the year 2020 is 6.12 percent despite Covod-19 pandemic.

For regular PagIBIG members who are active and are still paying contribution, the dividend is 5.62 percent net without tax deduction. 

The advantage of saving under MP2 program is the policy of giving dividend which is a little higher than the active members.

In the prior year, the Pag-IBIG charter allows only 70 percent of its income for dividend to its members. But for 2020, the Board of Trustees and PagIBIG President Acma Vicente P. Mote decided to give a little over 90 percent of its income for dividend of its members.

“This is why PagIBIG members and MP2 depositors received big dividends. That’s why, through Yagyagan program of DYRC and Cebu Business Week, I encourage the people, OFWs (Overseas Filipino Workers), and those self-employed to deposit their extra money in MP2. Your money is safe and your dividend has no tax obligation,” Teves said. ELIAS O. BAQUERO