Amending Certain Provisions Of Presidential Decree No. 1752, Entitled "Amending The Act Creating The Home Development Mutual Fund"

EXECUTIVE ORDER NO. 35 August 1, 1986

AMENDING CERTAIN PROVISIONS OF PRESIDENTIAL DECREE NO. 1752, ENTITLED "AMENDING THE ACT CREATING THE HOME DEVELOPMENT MUTUAL FUND"

WHEREAS, the fund contributions to the Home Development Mutual Fund as mandated by Presidential Decree No. 1752 were suspended as a temporary measure for the purpose of studying how the burdens of lower income earners can be reduced and their benefits increased;

WHEREAS, after consultation with the affected sectors, it has become imperative to maintain the Fund and to expand and increase the benefits due to its members but with a lesser burden to the lower income groups;

WHEREAS, there is a need to further strengthen the powers of the Fund for the efficient and effective discharge of its functions in order to guarantee to its members all the benefits due them:

NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, do hereby order:

Sec. 1. Section 5 of Presidential Decree No. 1752 is hereby amended to read as follows:

"Sec....

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Summary of Executive Order No. 35 Amending Certain Provisions of Presidential Decree No. 1752

Contributions to the Home Development Mutual Fund (HDMF):
- Employees earning not more than P1,500 per month: 1% contribution (Sec. 1)
- Employees earning more than P1,500 per month: 2% contribution (Sec. 1)
- All employers: 2% contribution based on employees' Monthly Fund Salary (Sec. 1)
- Monthly Fund Salary is defined as basic monthly pay plus Cost of Living Allowances (COLA), capped at P5,000 (Sec. 1)
- Employers cannot deduct their contribution from employees' wages (Sec. 1)

Housing Loan Eligibility and Policies:
- Members in good standing are eligible to apply for housing loans (Sec. 2)
- Board of Trustees to institute policies ensuring lower-income members obtain housing loans (Sec. 2)

Reporting and Member Information:
- Board of Trustees to submit an annual report to the President by March 15 (Sec. 3)
- Members to receive a Statement of Accumulated Fund Value at least once a year (Sec. 3)

Contribution Remittance and Penalties:
- Employers must remit contributions through SSS, GSIS, or a mechanism determined by the Board of Trustees (Sec. 4)
- Non-payment subjects employers to a 3% monthly penalty on the amount due (Sec. 4)
- Non-payment by employers does not prejudice employees' benefits (Sec. 4)

Visitorial and Enforcement Powers:
- The Fund can inspect premises, books, and records of covered entities, require reports, and act on violations (Sec. 5)
- The Fund's administration may be subject to supervision by government agencies designated by the President (Sec. 5)

Effectivity:
- The Executive Order takes effect on August 1, 1986 (Sec. 7)