Law Summary
Contributions to the Fund
- Contribution rates depend on the employee's monthly compensation:
- Employees earning up to PHP 1,500: 1% contribution.
- Employees earning above PHP 1,500: 2% contribution.
- Employers contribute 2% of the monthly compensation of all covered employees.
- Monthly compensation includes basic salary plus Cost of Living Allowance (COLA).
- Maximum monthly compensation for contribution purposes is capped at PHP 5,000.
- Employer contributions cannot be deducted from employee wages.
Membership Term and Withdrawal Options
- Membership duration is 20 years, with possible earlier termination by retirement, disability, insanity, death, departure from the country, or other causes as defined by the Board.
- Members joining after the enactment may withdraw their total contributions after 10 or 15 years of continuous membership.
- Withdrawal option subject to no outstanding housing loans.
- Withdrawal option may be exercised only once; it does not end membership.
- Resignation, layoff, or suspension does not necessarily end membership but may suspend contributions.
Investment Requirements
- At least 70% of the Fund’s investible funds must be invested in housing-related projects, in accordance with the Act.
Rules and Regulations
- The Board of Trustees must promulgate necessary rules within 60 days from the Act’s approval to implement the law effectively.
Sunset Review Provision
- Every three years, Congress will conduct a "sunset review" evaluating the Fund's performance and impact to determine if it should continue.
- The review is conducted by the Senate and House Committees with jurisdiction over the Fund.
Repealing and Effectivity Clauses
- Sections 10(b), (c), and (d) of Executive Order No. 90 are repealed.
- All inconsistent laws, executive orders, rules, or regulations are repealed or modified accordingly.
- The Act takes effect 15 days after complete publication in the Official Gazette or two national newspapers, whichever is earlier.