Home Development Mutual Fund

 

The Home Development Mutual Fund (“HDMF” or “Pag-IBIG”) issued Circular No. 421, dated 16 January 2019, instructing all affected employers to stop deducting contributions from all expatriates under their employ. The refund of contributions and accrued dividends from expatriates shall be processed upon filing of corresponding applications for claim.

The circular states that Item B. Section 1.1.1.5 of Circular No. 274 [quoted below and which is part of the enumeration of employees covered by the mandatory contributions] and all other memoranda, rules, regulations and other issuances inconsistent thereto are repealed, amended or modified accordingly.

 

Item B. Section 1.1.1.5 of Circular No. 274 [REPEALED]

An expatriate who is not more than 60 years old and is compulsorily covered by the Social Security System (SSS), regardless of citizenship, nature and duration of employment, and the manner by which the compensation is paid. In the absence of an explicit exemption from SSS coverage, the said expatriate, upon assumption of office, shall be covered by the Fund.

 

An expatriate shall refer to a citizen of another country who is living and working in the Philippines.

R.G. Manabat Comments: Circular No. 421 was only uploaded on the official website of HDMF in May 2019. Nonetheless, the date of the circular shall still be considered in determining its effectivity date.

 

HDMF has not yet released the guidelines on how to process the refund claims and which period is subject to the refund. 

 

The full text of the issuance is attached for your reference.

Circular No. 421 - Treatment on the Mandatory Coverage of Expatriates under Circular No. 274 Item B. Section 1.1.1.5

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