Instituting A System Of Voluntary Contributions For Housing Purposes
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Instituting A System Of Voluntary Contributions For Housing Purposes
Presidential Decree No. 1530
June 11, 1978
Case Overview and Summary
Summary of Presidential Decree No. 1530Establishment of Home Development Mutual Funds
- Two separate funds created: one for government employees and one for private employees (Section 1)
- Fund for government employees administered by GSIS, funded by contributions from government employees and National Government (Section 2)
- Fund for private employees administered by SSS, funded by contributions from private employees and their respective employers (Section 2)
Contributions and Membership
- Contributions are voluntary, based on 3% of basic salaries (Section 2)
- National Government and employers contribute an amount equivalent to employee contributions (Section 2)
- Employees who contribute become members of the respective fund (Section 3)
- Members in good standing (up-to-date on contributions) earn annual interest and may receive dividends from surplus profits (Section 3)
Housing Loans
- Members in good standing are eligible to apply for housing loans (Section 4)
- Loans secured by real estate mortgage (Section 5)
- Loan amount up to 80% of collateral value, maximum of ₱80,000, subject to paying capacity and other requirements (Section 5)
Fund Management and Investments
- Funds not needed for operations to be invested with prudent regard for liquidity (Section 6)
- GSIS and SSS may contribute lands and housing units to the respective funds at appraised values for resale to qualified employees (Section 7)
- Contributions by GSIS and SSS earn annual interest (Section 7)
Tax Exemptions
- Funds, interests, and dividends received by members are exempt from taxes, tariffs, duties, fees, imposts, assessments, and other charges (Section 8)
Initial Funding and Administration
- GSIS and SSS to advance necessary amounts for initial operation of respective funds, which earn interest (Section 9)
- GSIS and SSS to promulgate rules and regulations for implementation (Section 12)
- GSIS and SSS authorized to hire executives and workers for fund administration, exempt from Civil Service Law and other regulations (Section 13)
Separation from Service
- Members separated from service (retirement, death, disability, resignation, dismissal) cease to be members but may continue at GSIS/SSS option (Section 10)
- Separated members with existing loans must continue paying contributions based on last salary until loan is liquidated (Section 10)
- Separated members entitled to return of contributions per rules and regulations (Section 11)
Repealing Clause and Effectivity
- Conflicting laws, decrees, orders, rules, and regulations are repealed or modified accordingly (Section 14)
- Decree takes effect upon approval (Section 15)
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Executive Issuances
Presidential Decrees
Home Development Mutual Funds
Government employees
Private employees
GSIS
SSS
Voluntary contributions
Housing loans
Real estate mortgage
Tax exemptions
Fund administration
Separation from service
Retirement
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Disability
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Instituting A System Of Voluntary Contributions For Housing Purposes
Presidential Decree No. 1530
•June 11, 1978
MALACAÑANGM a n i l a
PRESIDENTIAL DECREE No. 1530
INSTITUTING A SYSTEM OF VOLUNTARY CONTRIBUTIONS FOR HOUSING PURPOSES
WHEREAS, a prime concern of the New Society is the quality of human life, which cannot be improved without providing the citizens with sufficient human shelters and structures;
WHEREAS, the Constitution of the Philippines, in its Article II, Section 7, mandates that: "The State shall establish, maintain, and ensure adequate social services in the field of . . . housing . . . to guarantee the enjoyment by the people of a decent standard of living;"
WHEREAS, the government has concentrated its efforts in establishing decent human settlements and in uplifting the conditions in our communities;
WHEREAS, up to this time there exist an acute housing shortage which has remained a persistent problem due to the burgeoning population, the absence of adequate house financing, and increasing construction costs, which place satisfactory housing beyond the reach of the masses;
WHEREAS, there is an urgent need to provide massive financing to help solve the housing problem that impedes...
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