Who is required to be a member of the Pag‑IBIG Fund?

All employees covered by SSS or GSIS, members of the Armed Forces, Bureau of Fire Protection, Bureau of Jail Management and Penology, Philippine National Police, and Filipinos working for foreign employers must join; spouses who stay at home may join voluntarily at half the contribution rate.

How much do I have to contribute each month?

If your monthly salary is ₱1,500 or less, you contribute 1% of that amount; if it is more than ₱1,500, you contribute 2%. Your employer also contributes 2% of your salary, but only up to a maximum salary base of ₱5,000 unless the Board changes the ceiling.

When can I withdraw my contributions?

You may withdraw the full accumulated value after completing 15 years of continuous membership, provided you have no outstanding housing loan with the Fund. Membership otherwise continues for the full 20‑year term.

What benefits can I get from the Fund?

Members in good standing can apply for housing loans, receive dividends on their contributions, and may receive other benefits the Board may create, such as early retirement incentives or special disbursements.

What happens if my employer does not remit the contributions?

The employer is liable for a penalty of 3% per month on the unpaid amount, and the Fund can collect the contributions in the same manner as taxes. The employee’s right to benefits is not affected.

Are Pag‑IBIG contributions taxed?

No. All contributions, earnings, and benefit payments of the Fund are exempt from any tax, fee, or legal attachment, except to recover a member’s debt to the Fund.

Who decides the rules and policies of the Fund?

The Board of Trustees formulates, adopts, and amends all rules, regulations, and policies for the Fund, including contribution rates, loan terms, and penalties.

What are the penalties for violating the Pag‑IBIG law?

Violators may face a fine of up to twice the amount involved, imprisonment of up to six years, or both. Corporate officers and government officials responsible for non‑remittance may also be penalized.

RA 9679 - Pag-IBIG Fund Law (2009)

Philippine lawLegal status not independently verified

In brief

AI summary. Verify against the source below.

The Pag-IBIG Fund Law creates a mandatory, tax‑exempt mutual savings system for Filipino employees and their employers, using contributions to provide housing loans and other benefits. Membership lasts 20 years, with specific contribution rates and rules for withdrawal and penalties.

Who it affects: All private and government employees in the Philippines, their employers, and eligible spouses or Filipinos working abroad.

Key provisions

Mandatory coverage. All employees covered by SSS or GSIS, uniformed services, and Filipinos employed abroad must join the Fund; spouses who stay at home may join voluntarily at half the contribution rate. [Sec. 6]
Contribution rates. Employees earning up to ₱1,500 pay 1% of their monthly salary; those earning more pay 2%. Employers must contribute 2% for each covered employee, with a compensation ceiling of ₱5,000 unless the Board changes it. [Sec. 7]
Membership term and early withdrawal. Membership runs for 20 years. After 15 years of continuous membership, a member with no outstanding housing loan may withdraw the total accumulated contributions without losing membership. [Sec. 8]
Housing loan eligibility. Members in good standing can apply for housing loans under terms set by the Board, which must give priority to lower‑income members. [Sec. 11]
Tax exemption. The Fund, its assets, contributions, earnings, and benefit payments are exempt from all taxes, fees, and legal attachments, except to collect a member’s debt to the Fund. [Sec. 19]
Government guarantee. The government guarantees the solvency of the Fund so that benefits will not be reduced. [Sec. 20]
Board of Trustees composition. The Board, appointed by the President, includes the HUDCC chairperson (chair), the Finance Secretary (vice‑chair), secretaries of Labor, Budget, Trade and Industry, the Fund’s CEO, and five private‑sector members (two employee reps, two employer reps, one government‑employee rep). [Sec. 14]
Employer remittance duty and penalties. Employers must set aside and remit contributions as directed by the Board; failure to pay incurs a 3% monthly penalty on the overdue amount and may be collected like taxes. [Sec. 23]
Penal provisions for violations. Willful refusal or fraudulent failure to comply with the Act can result in a fine up to twice the amount involved, imprisonment up to six years, or both; corporate officers may also be held liable. [Sec. 25]

Common questions

Who is required to be a member of the Pag‑IBIG Fund?: All employees covered by SSS or GSIS, members of the Armed Forces, Bureau of Fire Protection, Bureau of Jail Management and Penology, Philippine National Police, and Filipinos working for foreign employers must join; spouses who stay at home may join voluntarily at half the contribution rate. [Sec. 6]
How much do I have to contribute each month?: If your monthly salary is ₱1,500 or less, you contribute 1% of that amount; if it is more than ₱1,500, you contribute 2%. Your employer also contributes 2% of your salary, but only up to a maximum salary base of ₱5,000 unless the Board changes the ceiling. [Sec. 7]
When can I withdraw my contributions?: You may withdraw the full accumulated value after completing 15 years of continuous membership, provided you have no outstanding housing loan with the Fund. Membership otherwise continues for the full 20‑year term. [Sec. 8]
What benefits can I get from the Fund?: Members in good standing can apply for housing loans, receive dividends on their contributions, and may receive other benefits the Board may create, such as early retirement incentives or special disbursements. [Sec. 10]
What happens if my employer does not remit the contributions?: The employer is liable for a penalty of 3% per month on the unpaid amount, and the Fund can collect the contributions in the same manner as taxes. The employee’s right to benefits is not affected. [Sec. 23]
Are Pag‑IBIG contributions taxed?: No. All contributions, earnings, and benefit payments of the Fund are exempt from any tax, fee, or legal attachment, except to recover a member’s debt to the Fund. [Sec. 19]
Who decides the rules and policies of the Fund?: The Board of Trustees formulates, adopts, and amends all rules, regulations, and policies for the Fund, including contribution rates, loan terms, and penalties. [Sec. 15]
What are the penalties for violating the Pag‑IBIG law?: Violators may face a fine of up to twice the amount involved, imprisonment of up to six years, or both. Corporate officers and government officials responsible for non‑remittance may also be penalized. [Sec. 25]

Fourteenth Congress

Second Regular Session

Begun and held in Metro Manila, on Monday, the twenty-eighth day of July, two thousand eight.

[ REPUBLIC ACT NO. 9679, July 21, 2009 ]

AN ACT FURTHER STRENGTHENING THE HOME DEVELOPMENT MUTUAL FUND, AND FOR OTHER PURPOSES

Section 1. Title. — This Act shall be known as the "Home Development Mutual Fund Law of 2009, otherwise known as Pag-IBIG (Pagtutulungan sa kinabukasan: Ikaw, Bangko, Industriya at Gobyerno) Fund".

Section 2. Declaration of Policy. — It is the policy of the State to establish, develop, promote, and integrate a nationwide sound and viable tax-exempt mutual provident savings system suitable to the needs of the employed and other earning groups, and to motivate them to better plan and provide for their housing needs, by membership in the Home Development Mutual Fund, with mandatory contributory support of the employers in the spirit of social justice and the pursuit of national development.

Section 3. Statement of Objectives. — Towards this end, the State shall integrate all laws relating to the Home Development Mutual Fund to effectively achieve the following objectives:

(a) To improve the quality of life of its citizens by providing them with sufficient shelter;

(b) To provide for an integrated nationwide provident savings system; and

Section 4. Definition of Terms. — The following terms shall mean:

(a) Board - the duly constituted Board of Trustees of the Home Development Mutual Fund.

(b) Compensation - basic monthly salary plus mandated cost of living allowance.

(d) Dependents - refers to legal dependents of a deceased member, as defined under the Family Code.

(e) Employee - any person in the service of an employer who receives compensation of such services.

(f) Employer - any person, natural or juridical, domestic or foreign, who carries on in the Philippines, or outside of the Philippines, any trade, business, industry, undertaking or activity of any kind, and uses the services of another person who is under his order as regards such services; the government, its national and local offices, political subdivisions, branches, agencies, or instrumentalities, including corporations owned and/or controlled by the government, and the local government units.

(g) Employment - any service performed by an employee for his/her employer within the Philippines: Provided, however, That any foreign government, international organization or their wholly-owned instrumentality employing workers in the Philippines or employing Filipinos outside of the Philippines, may enter into an agreement with the Fund for the inclusion of their employees as members of the Fund: Provided, further, That the term of such agreement conform with the provisions of this Act.

(h) Fund - the fund created under this Act which is a government financial institution involved in mobilizing provident funds primarily for shelter finance;

(i) GSIS - the Government Service Insurance System created under Commonwealth Act No: 186, as amended.

(j) Investible Funds - shall mean funds available after deducting cost of operations and expenses, administrative and general expenses, reserves for benefit claims, provisions for a sinking fund for the return of the members’ equity upon maturity and provision for reserve for loan repayments.

(k) Member - an employee coverable under this Act and pays the mandated contributions.

(l) Membership Term - a period of twenty (20) years commencing from the first day of the month to which the member’s initial contribution to the Fund applies: Provided, That he shall have contributed a total of two hundred forty (240) monthly contributions at the time of maturity.

(m) Net Fund Asset - the total assets of the Fund less current liabilities.

(n) Permanent Total Disability - loss or impairment of a physical and mental function resulting from injury or sickness which completely incapacitates a member to perform any work or engage in any business or occupation as determined by the Fund.

(o) SSS - the Social Security System created under Republic Act No. 1161, as amended.

Section 5. Fund System. — To carry out the purposes of this Act, there is hereby created the Home Development Mutual Fund of 2009, also referred to herein as the Fund, a mutual provident savings system for private and government employees and other earning groups, supported by matching mandatory contributions of their respective employers with housing as the primary investment.

The Fund shall be a body corporate, with principal office in Metro Manila, and shall replace the Home Development Mutual Fund established under Presidential Decree No. 1752.

Section 6. Fund Coverage. — Coverage in the Fund shall be mandatory upon: (a) all employees covered by the SSS and the GSIS, and their respective employers, notwithstanding any waiver of coverage previously issued, including the uniformed members of the Armed Forces of the Philippines, the Bureau of Fire Protection, the Bureau of Jail Management and Penology, and the Philippine National Police; (h) Filipinos employed by foreign-based employers; and (c) spouses who devote full-time to managing the household and family affairs, unless they also engage in another vocation or employment which is subject to mandatory coverage, may be covered by the Fund on a voluntary basis adopting as a basis of contributions one-half(1/2) of the monthly compensation income of the employed spouse.

Coverage may also be extended to other working groups, with or without employer contributions, as may be determined by the Board of Trustees.

Section 7. Fund Generation and Contributions. — The money of the Fund shall be generated by the provident savings that the covered employees shall contribute for the purpose every month, and the equal amounts that their respective employers shall mandatorily contribute.

Covered employees and employers shall contribute to the Fund based on the monthly compensation of covered employees as follows:

Employees earning not more than One thousand five hundred pesos (P1,500.00)per month - one percent (1%).

Employees earning more than One thousand five hundred pesos (P1,500.00) per month - two percent (2%).

All employers - two percent (2%) of the monthly compensation of all covered employees.

The maximum monthly compensation to be used in computing employee and employer contributions shall not he more than Five thousand pesos (P5,000.00): Provided, That this maximum may be fixed from time to time by the Board of Trustees through rules and regulations adopted by it, taking into consideration actuarial calculations and rates of benefits.

Notwithstanding any contract to the contrary, an employer shall not deduct, directly or indirectly, from the compensation of its employees covered by the Fund, or otherwise recover from them, the employer's contribution with respect to such employees.

Section 8. Membership Term. — Membership in the Fund shall be for a period of twenty (20) years, except when earlier terminated by reason of retirement, disability, insanity, death, departure from the country or other causes as may be provided for by the Board of Trustees: Provided, That those who become members of the Fund after the effectivity of this Act may withdraw the total accumulated value of their contributions to the Fund after the fifteenth (15th) year of continuous membership: Provided, further, That said members have no outstanding housing loans with the Fund: Provided, finally, That this option shall not prejudice the member's continuing membership in the Fund.

Resignation, layoff or suspension from employment may not necessarily constitute a ground for membership termination, except for suspension of contributions.

Section 9. Waiver or Suspension of Coverage. — Coverage of the Fund and/or the payment of monthly contribution to the same may, by rules or resolutions of the Board of Trustees, be waived or suspended by reasons of nature of employment, condition of business, ability to make contributions and other reasonable considerations.

Section 10. Provident Character. — The Fund shall be private in character, owned wholly by the members, administered in trust and applied exclusively for their benefit. All the personal and employer contributions shall be fully credited to each member, accounted for individually and transferable in case of change of employment. They shall earn dividends as may be provided for in the implementing rules. The said amounts shall constitute the provident fund of each member, to be paid to him, his estate or beneficiaries upon termination of membership, or from which peripheral benefits for the member may be drawn.

Section 11. Housing Features. — A member of good standing shall be eligible to apply for housing loans, under such terms and conditions as may be authorized by the Board of Trustees, taking into account ability to pay. The Board of Trustees shall institute policies to ensure that lower-income members obtain such housing loans.

Section 12. Implementing Body. — The Home Development Mutual Fund created under this Act, shall implement the provisions hereof.

Section 13. Powers and Functions of the Fund. — The Fund shall have the powers and functions specified in this Act and the usual corporate powers:

(a) To formulate, adopt, amend and/or rescind such rules and regulations as may be necessary to carry out the provisions and purposes of this Act, as well as the effective exercise of the powers and functions, and the discharge of duties and responsibilities of the Fund, its officers and employees;

(b) To adopt or approve the annual and supplemental budget of receipts and expenditures including salaries and allowances of the Fund personnel, to authorize such capital and operating expenditures and disbursements of the Fund as may be necessary and proper for the effective management and operation of the Fund;

(c) To submit annually to the President of the Philippines not later than March 15, a report of its activities and the state of the Fund during the preceding year, including information and recommendations for the development and improvement thereof;

(d) To invest not less than seventy percent (70%) of its investible funds to housing, in accordance with this Act;

(e) To acquire, utilize, or dispose of, in any manner recognized by law, real or personal properties to carry out the purposes of this Act;

(f) To set up its own accounting and computer systems; to conduct continuing actuarial and statistical studies and valuations to determine the financial viability of the Fund and its project; to require reports, compilations and analysis of statistical and economic data, as well as make such other studies and surveys as may be needed for the proper administration and development of the Fund;

(g) To have the power of succession; to sue and be sued; to adopt and use a corporate seal;

(h) To enter into and carry out contracts of every kind and description with any person, firm or association or corporation, domestic or foreign;

(i) To borrow funds from any source, private or government, foreign or domestic;

(j) To invest, own or otherwise participate in equity in any establishment, firm or entity; to form, organize, invest in or establish and maintain a subsidiary or subsidiaries in relation to any of its purposes;

(k) To approve appointments in the Fund except appointments to positions which are policy determining, primarily confidential or highly technical in nature according to the civil service rules and regulations: Provided, That all positions in the Fund shall be governed by a compensation and position classification system and qualification standards approved by the Fund's Board of Trustees based on a comprehensive job analysis, wage compensation study and audit of actual duties and responsibilities: Provided, further, That the compensation plan shall be comparable with prevailing compensation plans in the private sector and shall be subject to the periodic review of the Board no more than once every four (4) years without prejudice to yearly merit reviews or increases based on productivity and profitability. The Fund shall, therefore, be exempt from any laws, rules and regulations on salaries and compensations;

(l) To maintain a provident fund, which shall consist of contributions made by both the Fund and its officers and employees and their earnings, for the payment of benefits to such officials and employees or their heirs under such terms and conditions as it may prescribe;

(m) To design and adopt an early retirement incentive plan (ERIP) for its own personnel;

(n) To establish field offices and to conduct its business and exercise its powers in these places;

(o) To approve restructuring proposal for the payment of due but unremitted contributions and unpaid loan amortizations under such terms and conditions as the Board of Trustees may prescribe;

(p) To determine, fix and impose interest and penalties upon unpaid contributions due from employers and employees;

(q) To ensure the collection and recovery of all indebtedness, liabilities and/or accountabilites, including unpaid contributions in favor of the Fund arising from any cause or source or whatsoever, due from all obligors, whether public or private; to demand payment of the obligations referred to herein, and in the event of failure or refusal of the obligor or debtor to comply with the demand, to initiate or institute the necessary or proper actions or suits, criminal, civil, administrative, or otherwise, before the courts, tribunals, commissions, boards or bodies of proper jurisdiction: Provided, however, That the Fund may compromise or release, in whole or in part, any interest, penalty or civil liability to the Fund in connection with the collection of contributions and the lending operations of the Fund, under such terms and conditions as prescribed by the Board of Trustees: Provided, further, That the Board may, upon recommendation of the Chief Executive Officer, deputize any member of the Fund's legal staff to act as special sheriff in foreclosure cases, in the sale or attachment of the debtor's properties, and in the enforcement of court writs and processes in cases involving the Fund. The special sheriff of the Fund shall make a report to the proper court after any action taken by him, which shall treat such action as if it were an act of its own sheriffs in all respects;

(r) To design and implement other programs that will further promote and mobilize savings and provide additional resources for the mutual benefit of the members with appropriate returns on the savings/investments. The program shall be so designed as to spur socioeconomic take-off and maintain continued growth;

(s) To conduct continuing actuarial and statistical studies and valuations' to determine the financial condition of the Fund and taking into consideration such studies and valuations and the limitations herein provided, readjust the benefits, contributions, interest rates of the allocation or reallocation of the funds to the contingencies covered; and

(t) To exercise such powers and perform such acts as may be necessary, useful, incidental or auxiliary to carry out the provisions of this Act.

Section 14. Board of Trustees. — The corporate powers and functions of the Fund shall be vested in and exercised by the Board of Trustees appointed by the President of the Philippines, composed of the following:

(a) The Chairperson of the Housing and Urban Development and Coordinating Council, as the ex officio Chairman;

(b) The Secretary of the Department of Finance, as the ex officio Vice Chairman;

(c) The Secretary of the Department of Labor and Employment or his/her duly designated undersecretary, as ex officio member;

(d) The Secretary of the Department of Budget and Management or his/her duly designated undersecretary, as ex officio member;

(e) The Secretary of the Department of Trade and Industry, or his/her duly designated undersecretary, as ex officio member;

(f) The Chief Executive Officer of the Fund, as member; and

(g) Five (5) appointive members, two (2) representatives of private employees, two (2) representatives of private employers and one (1) representative of government employees.

The four (4) private sector representatives shall each be appointed by the President of the Philippines for a term of two (2) years: Provided, however, That of the first to be appointed, one (1) representative of the employers shall have a term of only one (1) year. The representative of the government employees shall be appointed by the President of the Philippines for a term of two (2) years.1aшphi1

The Chairman, Vice Chairman and members of the Board shall be entitled to a reasonable per diem for each meeting actually attended at such amounts as may be fixed by the Board in accordance with existing laws, rules and regulations.

Section 15. Powers of the Board. — The Board shall have the following powers:

(a) To formulate policies, rules and regulations to carry out effectively the functions of the Fund under this Act;

(b) To promulgate such rules and regulations as may be necessary or proper for the effective exercise of the powers and functions, as well as the discharge of the duties and responsibilities of the Fund, its officers and employees;

(c) To authorize expenditures of the Fund in the interest of effective administration and operations; to adopt from time to time the budgets for said purposes;

(d) To approve the annual and supplemental budget of receipts and expenditures including salaries and allowances of the Fund personnel; to authorize such capital and operating expenditures and disbursements as may be necessary and proper for the effective management and operation of the Fund;

(e) To condone, in whole or in part, penalties imposed on loans of members/borrowers who, for justifiable reasons prescribed by the Board, failed to pay on time any obligation due to the Fund: Provided, That such exclusive power to condone shall Likewise apply to penalties imposed on employers, who justifiably fail to remit when due the required contributions of their employees;

(f) To approve the Fund's organizational and administrative structures and staffing pattern, and to establish, fix, review, revise and adjust the appropriate compensation package for the officers and employees of the Fund in accordance with Section 13(k) hereof; and

(g) To exercise such powers as may be necessary to carry into effect the powers and accomplish the purposes for which the Fund is established.

Section 16. Rule-Making Power. — The Board of Trustees is hereby authorized to make and change needful rules and regulations, which shall be published in accordance with law or at least once in a newspaper of general circulation in the Philippines, to provide for, but not limited to, the following matters:

(a) The effective administration, custody, development, utilization and disposition of the Fund or parts thereof, including payment of amounts credited to members or to their beneficiaries or estates;

(b) Grounds for and effects or termination of membership other than by completion of term;

(d) Interim disbursements of accumulated values to members of ameliorative and similar purposes;

(e) Benefits, contributions including their rates, premium rates and interest rates;

(f) Housing and other loan assistance programs for members;

(g) Adjudication and settlement of claims and disputes and the procedures for the same on any matters involving the interests of members in the Fund;

(h) Optimize the effectiveness of the Fund’s coverage; and

(i) Other matters that, by express or implied provisions of this Act, shall require implementation by appropriate policies, rules and regulations.

Section 17. Powers and Duties of the Chief Executive Officer. — The Chief Executive Officer of the Fund shall execute and administer the policies and resolutions approved by the Board of Trustees, prepare its agenda and direct and supervise the operations and management of the Fund. The Chief Executive Officer, subject to the approval of the Board in case of approval of managerial positions and above, and the confirmation of the Board in below that of manager level, shall appoint the personnel of the Fund, remove, suspend or otherwise discipline them for cause and prescribe their duties and qualifications, in accordance with existing civil service laws, rules and regulations, to the end that only competent personnel may be employed.

Section 18. Money Investments. — All monies of the Fund not needed to meet current administrative and operational requirements, shall be invested with due and prudent regard for its safety, growth and liquidity needs.

Section 19. Exemption from Tax, Legal Process and Lien. — All laws to the contrary notwithstanding, the Fund and all its assets and properties, all contributions collected and all accruals thereto and income or investment earnings therefrom, as well as all supplies, equipment, papers or documents shall be exempt from any tax, assessment, fee, charge, or customs or import duty; and all benefit payments made by the Pag-IBIG Fund shall Likewise be exempt from all kinds of taxes, fees or charges, and shall not be liable to attachments, garnishments, levy or seizure by or under any legal or equitable process whatsoever, either before or after receipt by the person or persons entitled thereto, except to pay any debt of the member to the Fund. No tax measure of whatever nature enacted shall apply to the Fund, unless it expressly revokes the declared policy of the State in Section 2 hereof granting tax exemption to the Fund. Any tax assessment against the Fund shall be null and void.

Section 20. Government Guarantee. — The benefits prescribed in this Act shall not be diminished and to guarantee said benefits, the government of the Republic of the Philippines accepts general responsibility for the solvency of the Fund.

Section 21. Administration Costs. — The Fund shall bear the costs of its administration and development, in such amounts and/or limits as the Board of Trustees may deem appropriate, but not exceeding two percent (2%) of the Net Fund Assets of the previous year, excluding operating cost directly relating to the lending operations of the Fund.

Section 22. Audit. — The Chairman of the Commission on Audit shall act as the ex officio auditor of the Fund and, accordingly, is empowered to appoint a representative and other subordinate personnel to perform and report on such audit duties, responsible to and removable only by the Commission on Audit Chairman, without prejudice, however, to the power of the Board of Trustees to contract for another mode of independent audit service, in addition to that provided by the Commission on Audit as provided for under Presidential Decree No. 1445, otherwise known as the Government Auditing Code of the Philippines.

Section 23. Remittance of Contributions. —

(a) It shall be the duty of every employer, private or public, to set aside and remit the contributions required under this Act in accordance with a mechanism determined by the Board of Trustees.

(b) Every employer required to set aside and remit such contributions as prescribed under this Act shall he liable for their payment, and nonpayment shall further subject the employer to a penalty of three percent (3%) per month of the amounts payable from the date the contributions fall due until paid.

(c) It shall be mandatory and compulsory for all government instrumentalities, agencies, including government-owned and -controlled corporations, to provide the payment of contributions in their annual appropriations. Penal sanctions shall be imposed upon these employers who fail to include the payment of contributions on time, or delay the remittance of the required contributions to the Fund. The heads of offices and agencies shall be administratively liable for non-remittance of the required contributions to the Fund.

(d) Failure or refusal of the employer to pay or to remit the contributions herein prescribed shall not prejudice the right of the covered employee to the benefits under this Act.

(e) The contributions under this Act, in cases where an employer refuses or neglects to pay the same, shall be collected by the Fund in the same manner as taxes are made collectible under the National Internal Revenue Code, as amended.

The right to institute the necessary action against the employer may be commenced within twenty (20) years from the time delinquency is known or the assessment is made by the Fund, or from the time the benefit accrues, as the case may be.

Section 24. Employment Records and Reports. —

(a) Each employer shall immediately report to the Fund the names, ages, civil status, occupations, salaries and dependents of its covered employees.

(b) Every employer shall keep true and accurate work records for such period and containing such information as the Fund may prescribe, in addition to the annual register of new and separated employees which shall be secured from the Fund, when the employee shall enter on the 6rst day of employment or on the effective date of separation, the names of the persons employed or separated from employment and such other data that the Fund may require and said annual register shall be submitted to the Fund in the month of January each year. Such record shall be open for inspection by the Fund or its authorized representatives quarterly, or as often as the Fund may require.

Section 25. Penal Provisions. — Refusal or failure without lawful cause or with fraudulent intent to comply with the provisions of this Act, as well as the implementing rules and regulations adopted by the Board of Trustees, particularly with respect to registration of employees, collection and remittance of employee-savings as well as the employer counterparts, or the correct amount due, within the time set in the implementing rules and regulations or specific call or extension made by the Fund management shall constitute an offense punishable by a fine of not less than, but not more than twice, the amount involved or imprisonment of not more than six (6) years, or both such fine and imprisonment, in the discretion of the court, apart from the civil liabilities and/or obligations of the offender or delinquent. When the offender is a corporation, the penalty shall be imposed upon the members of the governing board and the president or general manager, without prejudice to the prosecution of related offenses under the Revised Penal Code and other laws, revocation and denial of operating rights and privileges in the Philippines, and deportation when the offender is a foreigner. In case of government instrumentalities, agencies or corporations, the treasurer, finance officer, cashier, disbursing officer, budget officer or other official or employee who fails to include in the annual budget the amount corresponding to the employers' contributions, or who fails or refuses or delays by more than thirty (30) days from the time such amount becomes due and demandable or to deduct the monthly contributions of the employee shall, upon conviction by final judgment, suffer the penalties of imprisonment of not more than six (6) years, and a fine of not less than, but not more than twice the amount involved.

Section 26. Existing Coverage. — Membership under the Fund established under Presidential Decree No. 1752, together with amounts and benefits already accrued to the members, including employers' counterparts, as well as covering records documents, shall be transferred, continued and/or integrated into the new Fund hereby established, subject henceforth to policies and rules adopted thereunder.ℒαwρhi৷

Section 27. Visitorial and Enforcement Powers. —

(a) The Fund or its duly authorized representatives is empowered to inspect the premises, books of accounts and records of any person or entity covered by this Act; require it to submit its reports regularly; and act on violations of any provisions of this Act.

(b) Particular aspects of the Fund's administration may be subject to supervision, visitation or verification by appropriate agencies of the government as may be designated and authorized by the President of the Philippines.

Section 28. Implementing Rules and Regulations. — The implementing rules and regulations to effectively carry out the provisions of this Act shall be adopted by and promulgated by the Board of Trustees of the Pag-IBIG Fund not later than ninety (90) days after the approval of this Act which shall be published in at least one (1) national newspaper of general circulation.

Section 29. Separability Clause. — If, for any reason, any provision of this Act, or the application thereof to any person or circumstances, is held invalid or unconstitutional, the remaining provisions not affected thereby shall continue to be in full force and effect.

Section 30. Repealing Clause. — Presidential Decree No. 1530, as amended by Executive Order Nos. 527 (series of 1979) and 538 (series of 1979); Presidential Decree No. 1752, as amended by Executive Order Nos. 35 (series of 1986) and 90 (series of 1986); and Republic Act No. 8501 are hereby repealed. Section 6 of Republic Act No. 7742 is hereby amended accordingly. AU other laws, decrees, executive orders, or rules and regulations, or parts thereof inconsistent with or contrary to the provisions of this Act or its purposes are hereby amended or modified accordingly.

Section 31. Effectivity. — This Act shall take effect fifteen (15) days after the completion of its publication in the Official Gazette or in at least two (2) national newspapers of general circulation.

Approved,

(Sgd.) JUAN PONCE ENRILE
President of Senate

(Sgd.) PROSPERO C. NOGRALES
Speaker of the House of Representatives

This Act which is a consolidation of House Bill No. 5220 and Senate Bill No. 2971 was finally passed by the House of Representatives and Senate on June 1, 2009.

(Sgd.) EMMA LIRIO-REYES
Secretary of Senate

(Sgd.) MARILYN B. BARUA-YAP
Secretary General House of Representatives

Approved: JUL 21 2009

(Sgd.) GLORIA MACAPAGAL—ARROYO
President of the Philippines