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No Pag-ibig Contributions for Expatriates

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No Pag-ibig Contributions for Expatriates

Published — June 1, 2022

The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.

Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.

Read also: Imprisonment for non-remittance of SSS, Pag-IBIG and PhilHealth contributions

On January 07, 2010, Home Development Mutual Fund (HDMF), more popularly known as the Pag–IBIG Fund issued Circular No. 274 Item B. Section 1.1.1.5 which states that:

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.

          However, this has been repealed by Circular No. 421 last January 16, 2019, which states that:

          Pursuant to the approval of the Senior Management Committee (SMC) on its meeting held last 30 October 2018, all affected employers shall stop deducting contributions from all expatriates under their employ. The refund of expatriates’ respective contributions and accrued dividends shall be processed upon filing of corresponding applications for claim. Accordingly, employers should not deduct Pag-Ibig contributions to their foreign national employees or expatriates. Also, the Foreign employees may claim their refund and dividends upon filing of their applications for claim.

Accordingly, employers should not deduct Pag-Ibig contributions to their foreign national employees or expatriates. Also, the Foreign employees may claim their refund and dividends upon filing of their applications for claim.

Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.

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