How to pay HDMF unpaid premiums from previous months or years?

Contribution payments that are past due not only incur penalties but may also affect members’ benefits claims in the future. Employers must always make sure that the remittance of members’ contributions is timely and intact. However, there may be situations where payments are not remitted because of other unforeseen circumstances. To help employers address this kind of issue, we will discuss in this article the processes for the late remittance of HDMF contributions. 

The first step is to fill out the latest Membership Savings Remittance Form (MSRF, HQP-TMF-381) and consolidate in one (1) MSRF all unpaid premiums of all employees, whether in months or in years. 

Below is a sample, filled-out MSRF. 

Below will be your guide to completing the Membership Savings Remittance Form (MSRF): 

1. Employer ID Number refers to the unique 12-digit number series assigned to a registered employer. It starts with the number ’2’. Ensure to remove the hyphen and spaces between the numbers. 

2. Employer/Business Name refers to the name of the employer. 

3. Employer/business address refers to the business address of the employer. 

4. Contact Number refers to the employer’s contact number. 

5. Email Address refers to the employer’s email address. 

6. Pag-IBIG MID Number refers to the unique 12-digit number series assigned to a registered member. It starts with the number ’1’.  

7. MP2 Account Number refers to the unique 12-digit number series assigned to registered members with Modified Pag-IBIG II (MP2) Savings. It starts with the number ‘5’. 

8. Membership program refers to the type of Pag-IBIG program that the payment remittance is intended for. 

• For membership savings, indicate ‘F1’.  
• For MP2 savings, indicate ‘M2’.  

9. Last name refers to the family name or surname of the member. 

10. First Name refers to the given name of the member. 

11. Name extensions refer to Jr., II, III, and the like. Do not put ‘period’ at the end of the name extension. 

12. Middle name refers to a member’s mother’s maiden last name. For married women, it refers to their father’s last name. Indicate the complete middle name of the member. Do not indicate the nickname, second name, or middle initial in this column. 

13. Replace ‘Ñ’ with ‘N’. 

14. PerCov refers to the period covered. It starts with a year and a month. 

Examples:  

Indicate ‘202301’ for MS remittances covering January 2022. 

Indicate ‘202302’ for MS remittances covering February 2022. 

15. EE Share refers to the savings or contributions of the employee.  

16. ER Share refers to the counterpart savings or contributions of the employer.  

17. Remarks refer to the employment status of the employees within the company.  

• For the deceased, indicate ‘D’ 
• For leave without pay or AWOL, indicate ’L’ 
• For newly hired, indicate ‘N’ 
• For retired, indicate ‘RT’ 

18. Below the table, add one space or row prior to the total remittance. 

Second, request the computation of penalties. Bring the Membership Savings Remittance Form to the nearest branch or send the form via email to the designated branch. Kindly state your preferred date of payment for their reference in computing the penalties. 

Then, once you have the estimated penalty computation, submit the MSRF in Excel format to the nearest branch or concerned branch on or before your preferred payment date stated in the second step. Save the softcopy on a Universal Flash Bus (USB) or flash drive. Portable Document Format (PDF) or Word format shall not be accepted. 

Finally, pay the premiums stated in the MSRF together with the penalties computed in the second step. Secure proof of payment. 

Employers may also apply for the penalty condonation offered by the Pag-IBIG agency. However, this is still subject to HDMF assessment as to whether the requesting company will be granted penalty condonation. The procedure for applying for a penalty condonation will be covered in more detail in the following article. Stay tuned!

Arianne Keith Velasquez, CPA

In view of the pandemic the whole world is suffering with recently, it is impossible for Filipinos to ignore the fact that the human respiratory system is not only being compromised here but also the livelihood of family providers such as employees under the no work, no pay policy. The sudden declaration of the Enhanced Community Quarantine in the entire Luzon after 48 hours of General Community Quarantine, which made it difficult to cross along city borders, hurts the pockets of many.

On March 17, 2020, Proclamation No. 929, pursuant to Section 16 of Republic Act No. 10121, was issued by President Rodrigo Duterte to declare the Philippines under State of Calamity enjoining the government agencies to provide full assistance to the Filipino community with the great efforts to defy COVID-19.

To wit, PAG-IBIG Fund is one of the established national saving programs providing financial assistance to every member or contributor, which can be a self-employed individual, private or government employee, in terms of housing needs and other purposes. 

Calamity loan or Multi-purpose loan are options which members can avail of during this crisis as aid in meeting the daily needs of family members.

Who is eligible to apply?

Below criteria must be met before a member can avail of the said loan:

1. Completed at least 24 monthly PAG-IBIG payments;
2. Active member that, within the last 6 months prior to the calamity loan application, has made at least monthly PAG-IBIG payments; and,
3. Resides in an area that has been declared to be in a State of Calamity.

How much can an applicant avail as Calamity Loan?

Members who are eligible can borrow up to a maximum of 80 percent (80% ) of their Total Accumulated Value (TAV), which is the total of the monthly contributions made at the time of the Calamity Loan application, and is subject to the terms and conditions of the Program.

The following table presents the maximum amount a member can avail based on the number of monthly contributions:

Is the loan interest-free?

The Calamity loan is not interest free, however, PAG-IBIG offers the lowest interest rate in the country which is 5.95% per annum.

Payment Terms

The said loan is amortized over 24 months with a grace period of 3 months from check issuance thus monthly payment shall start on the fourth month. Monthly amortizations shall be paid on or before the 15th day of each month.

Penalties will be imposed as follows in case of late payments:

• 1/20 of 1% of any unpaid amount shall be charged to the borrower for every day of delay; or,
• 1/10 of 1% of any unpaid amount shall be charged to the employer for every day of delay if amortization is paid thru salary deduction and late payment is by the fault of the employer.

How to Apply?

Below are the easy steps and requirements on how to proceed with the application:

1. Accomplish the Calamity Loan Application Form which is downloadable from PAG-IBIG website and submit it.
2. Submit the following requirements:

• Photocopy of at least two (2) valid IDs;
• For employed members:
  • Certificate of monthly net income in the application form to be filled out by the Employer; or,
  • Photocopy of latest pay slip validated by the Company;
• For self-employed members, photocopy of any of the following:
  • Business/Mayor’s Permit;
  • Commission Vouchers; or,
  • Other valid proof of income; and,
• Photocopy of the Payroll Account/Disbursement Card authenticated if self-employed and certified by Employer if employed.

3. Secure the Short Term Loan Acknowledgment Receipt.

4. When approved, get the cash loan on the scheduled date thru the Cash Card or Check.

With the application, it is important to note that Calamity Loan can be applied within 90 days after the declaration of State of Calamity otherwise members may opt to avail Multi-Purpose Loan (MPL) which bears 10.5% interest rate per annum. The MPL program follows the same process and requirements with the Calamity Loan except for the application form.

How to pay?

If employed, the amortization is paid thru salary deduction and will be remitted by Employer. On the other hand, payments will be made directly to the nearest PAG-IBIG Fund branch if self-employed.

In any circumstance that you are in need of financial help, it is not so bad to be knowledgeable and updated on the government programs of both national and local units to assist you.

Disclaimer: This is for purposes of academic discussions only as personally summarized by the author, not of Tax and Accounting Center, Inc. and is not a substitute for an expert opinion. Please consult your preferred tax and/or legal consultant for the specific details applicable to your circumstances. For comments, you may also please send mail at info(@)taxacctgcenter.ph, or you may post a question at Tax and Accounting Center Forum and participate therein.