FOURTEENTH CONGRESS OF THE 
1 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
1 
S E N A T E  
S. B. No. 31 
INTRODUCED BY THE HONORABLE MAR R O W  
EXPLANATORY NOTE 
The PAG-IBIG Fund is generated by the monthly contributions made by covered 
employees and their respective employers. Section 4 of Presidential Decree No. 1752, as 
amended, provides that the coverage of the PAG-IBIG Fund shall be mandatory upon all 
employees covered by the Social Security System and the Government Service Insurance 
System and their respective employers, except only for employees with monthly 
compensation not exceeding Php 4,000.00, whose coverage in the Fund shall be voluntary. 
The Fund has a total of 7.27 million members as of 30 September 2008. 
While the PAG-IBIG Fund is established to motivate employed and other earning 
groups to better plan and provide for their housing needs, the mandatory character of the 
PAG-IBIG Fund's coverage must be temporarily suspended to cushion the effects of the 
global financial crisis, especially among the employees. The mandatory monthly 
contribution, which is being automatically deducted from the employee's salary takes a slice 
away from the employee's limited resources intended for his family. In these times of global 
financial crisis, every peso counts, and by lifting the burden of mandatory PAG-IBIG 
coverage, we give each employee the opportunity to put their money for their immediate 
and essential needs. 
This bill, thus, proposes a two-year moratorium on the mandatory PAG-IBIG Fund 
coverage of all employees, both in the private and public sectors, subject to certain 
exceptions such as those who shall undertake to be covered by the PAG-IBIG Fund 
voluntarily and those who have outstanding PAG-IBIG loans. 
In view of the foregoing, the passage of this bill is earnestly sought. 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
1 
Second Regular Session 
1 
K 
S E N A T E  
INTRODUCED BY THE HONORABLE MAR R O U S  
AN ACT 
IMPOSING A TWO-YEAR MORATORIUM ON THE MANDATORY PAG- 
IBIG FUND COVERAGE, AND FOR OTHER PURPOSES. 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assem bled: 
SECTION 1. Title - This Act shall be known as the “Moratorium on the Mandatory 
PAG-IBIG Fund Coverage Art of 2009 ” 
SEC. 2. Coverage - This Act shall apply to all employees, both in the public and 
private sector, and their respective employers whose coverage in the PAG-IBIG Fund is 
mandatory under Presidential Decree No. 1752, otherwise known as the “Home 
Development Mutual Fund Law of 1980, As Amended, ” subject to exceptions provided for 
under this Act. 
SEC. 3. Moratorium on the Mandatoq PAG-IBIG Fund Coverage. - The mandatory 
coverage of the PAG-IBIG Fund under Presidential Decree No. 1752, otherwise known as 
the “Home Development Mutual Fund Law of 1980,”as amended, is hereby suspended for a 
period not exceeding two (2) years from the effectivity of this Act and no PAG-IBIG Fund 
contribution shall be collected andor deducted from the salaries of any employee within the 
duration of the aforestated two (2) year period. 
This shall be without prejudice to any employee and employer who shall undertake to 
be covered by the PAG-IBIG Fund voluntarily; Provided, That this suspension shall not 
- 1  


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
affect the collection of contribution due for prior years and still uncollected; Provided 
firthel; that the present members who have existing PAG-IBIG loans shall not be covered by 
the moratorium imposed under this Act. 
SEC. 4. Separability Clause. - If, for any reason, any part or provision of this Act is 
declared invalid, such declaration shall not affect the other provisions of this Act. 
SEC. 5. Repealing Clause. - All laws, decrees, executive orders, issuances, rules or 
regulations or parts thereof, which are inconsistent with the provisions of this Act, are 
hereby deemed repealed, amended or modified accordingly. 
SEC. 6. Effectivity. - This Act shall take effect fifteen (15) days after its publication in 
at least one (1) national newspaper of general circulation. 
Approved, 
- 2 -