Law Summary
Definitions
- Kasambahay (Domestic Worker): Individual working in the employer’s household, either live-in or live-out.
- Employer: Person engaging and controlling the Kasambahay’s service; party to the employment contract.
- Live-out Arrangement: Kasambahay works within the employer’s household but does not reside there.
Membership Coverage
- Mandatory membership for Kasambahays including:
- General household helpers
- Yayas (nannies)
- Cooks
- Gardeners
- Laundry persons
- Any person regularly performing occupational domestic work (live-out)
- Voluntary membership available for:
- Service providers
- Family drivers
- Occasional or sporadic workers not on regular basis
Membership Registration
- Eligibility: Kasambahay must have rendered at least one (1) month of service.
- Registration via online Kasambahay Unified Registration System (URS) including:
- Kasambahay completes Unified Registration Form.
- Employer completes Unified Registration Form and Household Employment Unified Report Form.
- Hard copy forms allowed if online unavailable; submission to nearest Pag-IBIG branch required.
- Registration with SSS or PhilHealth via Kasambahay URS counts as registration with Pag-IBIG Fund.
Monthly Mandatory Savings
- Employer must remit first Monthly Savings immediately after registration.
- Contributions for Kasambahays earning below ₱5,000 monthly:
- ₱1,500 and below: 3% total savings shouldered entirely by employer.
- Over ₱1,500 to ₱4,999: 4% total savings shouldered entirely by employer.
- For Kasambahays earning ₱5,000 or more:
- Monthly savings split equally: 2.0% by Kasambahay, 2.0% by employer.
- Maximum monthly compensation for computation is ₱5,000.
Remittance Procedure
- Employers remit Monthly Mandatory Savings on or before the 10th day of each month starting from registration date.
- Employer must inform Pag-IBIG Fund of occurrences affecting membership such as leave without pay, resignation, involuntary separation, or death.
Penalties for Late Remittance
- Penalty imposed: 0.1% of amount due per day of delay.
- If unpaid within the same month, penalty computed from first day after full settlement day.
Other Provisions
- No penalty if Kasambahay registered on or before 27 December 2013, provided savings are remitted from first month of employment or 04 June 2013, whichever is later.
- Late registration after 27 December 2013 will incur penalties from the start date or 04 June 2013 until payment.
Escalation Clause
- Issues in interpretation or implementation resolved by Department Manager III or escalated to higher authority.
Amendments
- Management authorized to amend or update guidelines as long as changes further program objectives and comply with Pag-IBIG charter and laws.
Effectivity
- Circular effective immediately upon issuance.