BusinessPag-Ibig Employer Registration – How to

In the Philippines, employers are legally mandated to register their businesses and employees with the Home Development Mutual Fund (HDMF), commonly known as Pag-IBIG. This requirement ensures that employees can avail of the fund’s various benefits, including housing loans, savings programs, and other financial assistance. Here is a detailed guide on how employers can register with Pag-IBIG.

Understanding Pag-IBIG Fund

The Pag-IBIG Fund was established to finance affordable housing and promote savings among Filipinos. It is a government-owned and controlled corporation that facilitates the collection of contributions from members and provides them with financial services and benefits.

Benefits of Pag-IBIG Membership

Employers and employees benefit from Pag-IBIG membership in several ways:

1. Housing Loans: Members can apply for housing loans with competitive interest rates.
2. Multi-purpose Loans: Short-term loans for various purposes are available.
3. Savings Programs: Members can grow their savings with the Pag-IBIG Regular Savings Program and the Modified Pag-IBIG II (MP2) Savings Program.
4. Financial Assistance: In times of calamities or emergencies, Pag-IBIG provides financial aid to affected members.

Who is Required to Register?

All employers in the Philippines, whether corporations, partnerships, sole proprietorships, non-profit organizations, or government agencies, must register with Pag-IBIG. This includes foreign-owned companies operating in the Philippines.

Registration Process for Employers

Step 1: Prepare Necessary Documents

Before proceeding with the registration, ensure you have the following documents:

1. Employer’s Business Permit or Mayor’s Permit
2. BIR Certificate of Registration (Form 2303)
3. SEC Registration (for corporations) or DTI Registration (for sole proprietorships)
4. Articles of Incorporation/Partnership and By-Laws (for corporations and partnerships)
5. Valid IDs of the company’s authorized signatories

Step 2: Complete the Employer’s Data Form (EDF)

The Employer’s Data Form (EDF) can be obtained from the Pag-IBIG office or downloaded from the Pag-IBIG website. This form requires detailed information about the employer, including the business name, address, nature of business, and authorized representatives.

Step 3: Submit Documents to the Pag-IBIG Office

Submit the completed EDF and the required documents to the nearest Pag-IBIG branch. Ensure that all information is accurate and complete to ensure a timely registration process.

Step 4: Wait for the Issuance of Employer ID Number

After submission, Pag-IBIG will process the registration and issue an Employer ID Number. This unique identifier will be used for all Pag-IBIG transactions, including remittance of employee contributions.

Employee Registration

Once the employer is registered, the next step is to enroll all employees as Pag-IBIG members. Each employee must fill out the Member’s Data Form (MDF) and submit it to the employer, along with a photocopy of their valid ID.

Contribution Remittance

Employers are required to remit Pag-IBIG contributions monthly. The total contribution is 4% of the employee’s monthly compensation, with the employee and employer each contributing 2%. Contributions can be remitted through various channels, including Pag-IBIG offices, accredited collecting agents, and online payment facilities.

Penalties for Non-Compliance

Failure to register with Pag-IBIG or to remit contributions on time can result in penalties and legal actions. Employers may be subject to fines, interest charges, and possible criminal liability under Republic Act No. 9679.

Is Assistance Available?

Employers in the Philippines are legally obliged to register with Pag-IBIG. This ensures that employees can access vital benefits and financial services.

For additional guidance and professional assistance with Pag-IBIG registration and other business compliance requirements, consider contacting us, a leading provider of business consultancy services in the Philippines, through any of the channels below:

• Contact Us Here
• Call us at: +63 (02) 8540-9623