Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 1530)
The main purpose of Presidential Decree No. 1530 is to institute a system of voluntary contributions from government and private employees for housing purposes through Home Development Mutual Funds to help alleviate the acute housing shortage in the Philippines.
The Government Service Insurance System (GSIS) is tasked to administer the Home Development Mutual Fund for government employees, while the Social Security System (SSS) administers the Fund for private employees.
Contributions to the Home Development Mutual Funds are voluntary and based on three percent (3%) of the employees' basic salaries.
The National Government or the employer shall give a counterpart contribution equivalent to the amount collected from their employees.
An employee who contributes to the Fund in accordance with the rules and regulations adopted by the GSIS or the SSS is considered a member. A member is in good standing if they are up to date with their monthly contributions.
Members receive interest on their contributions annually, and if the Fund's financial conditions allow, dividends from surplus profits. Good standing members are also eligible for housing loans.
Members in good standing can apply for a housing loan which must be secured by a real estate mortgage. The loan amount shall be up to 80% of the appraised value of the collateral, not exceeding P80,000, subject to the member's paying capacity and other requirements set by GSIS or SSS.
A member ceases to be part of the Fund upon separation by retirement, death, disability, resignation, or dismissal, but may opt to continue membership. If the member has an existing mortgage loan, the mortgage remains valid and payments continue based on the last salary received before separation.
No. The Fund, the interests, and dividends received by members are exempt from all forms of taxes, tariffs, duties, fees, imposts, assessments, and other charges under this Decree.
Yes. The GSIS or SSS may contribute lands and housing units at appraised values for developmental purposes to be resold to qualified employees, and such contributions will earn interest annually as provided in their rules and regulations.
The GSIS and SSS are authorized to promulgate necessary rules and regulations, employ executives and workers needed for Fund administration without being subject to the Civil Service Law and certain administrative rules, and manage the Fund's operations.