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 126.96.36.199 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the mandatory contributions] and all other memoranda, rules, regulations and other issuances inconsistent thereto are repealed, amended or modified accordingly.
Item B. Section 188.8.131.52 of Circular No. 274 [REPEALED]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.
DISCLAIMER: The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although R.G. Manabat & Co. endeavors to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
For any queries, you may contact any member of the InTAX Editorial Board or send your questions to email@example.com.
© 2020 R.G. Manabat & Co., a Philippine partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved.
KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.