When it comes to buying or building a house in the Philippines, many Filipinos, including overseas Filipino workers (OFWs), avail of Pag-IBIG Fund financing. Republic Act Number 9679 or the “Home Development Mutual Fund Law of 2009” states that all OFWs shall be mandatory covered by the HDMF or Pag-IBIG Fund. As for Filipino immigrants, permanent residents abroad, and those naturalized in other countries… Pag-IBIG membership is voluntary.
In Bahrain, where there is a large Filipino community, there are many OFWs who are active members of Pag-IBIG Fund. To avail of the agency’s programs and services, they make regular Pag-IBIG contributions, through offline as well as online methods.
Bahrain OFW’s Guide to Paying Pag-IBIG Contributions
The Migrant Workers Office (MWO) serves as the operating arm of the Philippine Department of Workers (DMW) in Bahrain. Here, OFWs can avail of various services, including Pag-IBIG Fund record verification and payment of contributions. From time to time, it also participates in “consular outreach missions,” which are held in different parts of the Kingdom, so that OFWs across Bahrain do not have to travel far to avail of various government services.
At this point, let us focus on Pag-IBIG Fund and how it benefits OFWs and their families.
What is Pag-IBIG?
The term “Pag-IBIG” is actually an acronym for the phrase: “Pagtutulungan sa kinabukasan: Ikaw, Bangko, Industriya, at Gobyerno.” Officially known as the Home Mutual Development Fund (HDMF), Pag-IBIG is managed by the Department of Human Settlements and Urban Development (DHSUD). Its main goal is to provide affordable housing and savings programs to Filipinos.
Vision and Mission
The official website of Pag-IBIG Fund presents its vision and mission, as follows:
Vision. “For every Filipino worker to save with Pag-IBIG Fund, to achieve their dream of home ownership, and to improve their quality of life.”
Mission. “To generate more savings from more Filipino workers, to administer a sustainable Fund with integrity, sound financial principles, and with social responsibility, and to provide accessible funds for housing of every member.”
Programs and Benefits
Members of the Pag-IBIG Fund can avail of various programs and services, including loans and savings:
Pag-Ibig I Savings
This is regular savings program of Pag-IBIG; it is where the monthly contributions of members go. Every month, members shall pay PHP 200 as contribution/savings. When a member retires, he/she will receive the Total Accumulated Value (TAV), which consists of his/her monthly contributions, employer counterpart (if applicable), and dividend earnings.
The great things about the Pag-IBIG I Savings Program is that if offer higher yearly dividend earnings, compared to most banks.
Modified Pag-IBIG 2 (MP2) Savings
Pag-IBIG Fund members who want to save more, and at the same time earn higher dividends, can sign up for the Modified Pag-IBIG 2 (MP2) Savings Program, which earns a higher dividend rate than the regular savings program. The minimum contribution to MP2 starts at PHP 500 a month; it can be withdrawn after a maturity period of five years.
Housing Loan
Members who are thinking of buying or building a house can apply for the Pag-IBIG Fund Housing Loan, which offers loans up to PHP 6 million, payable at low interest rates. Borrowers can use this loan for various purposes, including: purchase of a residential lot; purchase of a residential house and lot; building a house; improving a house; refinancing an existing housing loan; or a combination of different housing loan purposes.
Calamity Loan
Members with families who are living in areas hit by natural disaster can apply for the Pag-IBIG Fund Calamity Loan. This loan aims to help people recover form the effects of natural disasters by providing immediate financial assistance.
The Calamity Loan could be as much as 80 percent of a member’s regular savings, to be repaid over a period of two years (24 months) or three years (36 months).
Health and Education Loan Programs (HELPs)
As the name says, this program provides loans to Pag-IBIG members who need help in shouldering health or educational expenses. Just like the Calamity Loan, Pag-IBIG’s Health and Education Loan Programs (HELPs) offers up to 80 percent of a member’s regular savings. Funds are directly credited to the hospital or school concerned, for faster processing.
Multi-Purpose Loan
The Multi-Purpose Loan (MPL) is offered to members who need financial assistance for various needs, such as: minor house improvements, children’s tuition, additional capital for business, and other purposes. Similar to other loans, the MPL involves up to 80 percent of a member’s savings, to be paid over a maximum period of two years (24 months).
Video: Webinar on Pag-IBIG Fund Benefits
To learn more about Pag-IBIG Fund benefits for OFWs, watch this video featuring a seminar that was shared by the Philippine Embassy in Bahrain Facebook page:
How to Pay Pag-IBIG Contributions
To pay for Pag-IBIG Fund contributions, OFW members can go to the nearest Migrant Workers Office (MWO), or to a bank or remittance center that is accredited by the agency. Another option is to pay online (more on this later).
According to the Pag-IBIG Fund website, the banks and remittance that accept contributions overseas are the following:
- Philippine National Bank (PNB) and its collecting agents;
- Asia United Bank (AUB) and its collecting agents;
- iRemit, Inc. Offices and its collecting agents;
- Ventaja International Corporation collecting agents; and
- CashPinas collecting agents.
To make an over-the-counter payment, go to a bank or remittance company and fill up the Remittance Application Form. Inform the branch staff that you would like to make a Pag-IBIG Fund contribution payment, and submit the necessary documents.
Pag-IBIG Remittance Centers in Bahrain
Below is a list of banks and remittance companies in Bahrain that accept Pag-IBIG Fund contributions. Aside from the PNB Bahrain Representative, the other companies on this list are affiliated with collecting partners AUB, Ventaja, and iRemit:
- AREXCO WLL
- Bahrain Financing Company (BFC)
- Dalil Exchange WLL
- Gulf International Exchange Co. WLL
- PNB Bahrain Representative Office
- Travelex Bahrain WLL
- UAE Exchange Center Bahrain Co. WLL
- Zenj Exchange Co.
How to Pay Pag-IBIG Contributions Online
Nowadays, Pag-IBIG Fund members can pay contributions online through the Virtual Pag-IBIG website. This online platform enables members to pay contributions and loans, check their loans and savings records, schedule an appointment with Pag-IBIG, talk to a service agent, and make other transactions.
Simply head to the official website of Virtual Pag-IBIG and create an account to start using the portal. You can also go to the nearest Pag-IBIG branch for assistance. Once you have created a Virtual Pag-IBIG account, you can make online payments, provided that you have a bank card (Visa or MasterCard) or digital wallet (i.e. GCash or Maya).
Contact Information: MWO Bahrain
If you want to know more about Pag-IBIG Fund, its services, and other concerns, you can get in touch with the Migrant Workers Office (MWO) in Bahrain through these contact details:
Address: Villa Number 2, AMAR Villas, Building 2186, Road 2755, Block 327, Adliya, Kingdom of Bahrain
Telephone: +973 1772 1234 / +973 3807 2476
Email: mwo_bahrain@dmw.gov.ph
Website: https://www.dmw.gov.ph/
Facebook: https://www.facebook.com/mwobahrain.gov/
Google Map Location:
Final Thoughts
Whether you’re planning to buy a house, renovate your home, or if you need financial assistance for health, education, or other purposes — applying for a Pag-IBIG Fund loan is a great option. Thanks to the agency’s affordable rates, members can acquire the cash they need, when they need it. Saving money through the Pag-IBIG I and MP2 programs is also a wise decision.
Meanwhile, if you are a newly-hired OFW here in Bahrain, aside from financial matters… you should also be able to adapt to the local culture. Check out this article for some tips on adapting to a new culture or workplace.