Mandatory Pag-IBIG Coverage for Land-Based OFWs

Republic Act No. 9679 establishes the Pag-IBIG Fund as the home development mutual fund.
The Circular implements a documentation-related Pag-IBIG requirement for land-based OFWs pursuant to Republic Act No. 9679.
The Circular references Section 3, Rule V, Part II of the 2002 POEA Rules and Regulations Governing the Recruitment and Employment of Land-based overseas Workers for the contribution as a documentation cost component.

The Circular mandates Pag-IBIG Fund coverage for land-based Overseas Filipino Workers (OFWs).
The Circular makes the Pag-IBIG contribution a required part of processing that leads to issuance of POEA exit clearance/Overseas Employment Certificate (OEC).

All land-based OFWs are covered by the Circular.
Compliance applies to land-based OFWs processed under POEA processing channels, including:
- POEA Name Hire Facility
- Government Placement Branch
- Balik-Manggagawa Center
Compliance also applies to land-based OFWs hired through:
- POEA-licensed recruitment agencies
Compliance also applies to land-based OFWs processed through the in-house processing system.

The OFW must pay an advance Pag-IBIG Fund Contribution equivalent to six (6) months or the duration of the employment contract, whichever is lower.
The advance contribution is paid as part of documentation cost pursuant to Section 3, Rule V, Part II of the 2002 POEA Rules and Regulations Governing the Recruitment and Employment of Land-based overseas Workers.
The contribution must be paid in the context of issuance processing that results in POEA exit clearance/OEC.

OFWs processed through the POEA Name Hire Facility, the Government Placement Branch, and the Balik-Manggagawa Center must submit to POEA:
- their Pag-IBIG Member Data Form, in addition to existing documentary requirements; and
- must pay the required contribution for processing their documents and issuance of the POEA exit clearance/OEC.
OFWs hired through POEA-licensed recruitment agencies require the recruitment agency to submit to POEA:
- the OFW’s individual Pag-IBIG Member Data Form, in addition to existing documentary requirements; and
- proof of payment of the required Pag-IBIG contribution for processing and issuance of the POEA exit clearance/OEC.
Workers processed through the in-house processing system require the agency to submit to POEA:
- with its report of processing and deployment, the proof of payment of the required Pag-IBIG contribution.
These procedures must be observed for the issuance of POEA exit clearance/OEC.

Any issuances inconsistent with the Circular are repealed and modified accordingly.
The Circular imposes compliance effective immediately, covering the operational procedures for Pag-IBIG processing tied to POEA exit clearance/OEC.