The Home Development Mutual Fund was created by P.D. No. 1530, promulgated on
June 11, 1978. The fund, one for government employees and another for private
employees, is composed of contributions by the employees and counterpart
contributions by their employees.
P.D. No. 1752, enacted on December 13, 1980, amended Presidential Decree No. 1530
to make the Home Development Mutual Fund a body corporate and make its coverage
mandatory upon all employers covered by the SSS and GSIS.
To motivate the employed and other earning groups to better plan and provide for their
housing needs by membership in an integrated, nationwide savings system with
contributory support of the employers in the spirit of social justice and pursuit of national
development.
Is a provident savings system for employees in the private and public sectors supported
by matching contributions of their employers, with housing as primary investment. It is
also available to self-employed and other working groups.
Corporate Entity
The HDMF is a corporate entity. As such, it is vested with the following corporate
powers:
b.To submit annually to the President of the Philippines a public report covering its
activities in the implementation of the HDMF Law, as well as the state of the
Fund;
c.To invest its fund, directly or indirectly, in accordance with the provisions of the
HDMF Law;
d.To acquire, utilize, or dispose of, in any manner recognized by law, real or personal
properties;
e.To set up its own accounting and computer systems, needed for the proper
administration and development of the Fund;
f.To have the power of succession; to sue and be sued; to adopt and use a
corporate seal;
h.To borrow funds from any source, private or government, foreign or domestic;
j.To exercise such powers and perform such acts as may be necessary to carry out the
provisions of the law.
Coverage
Mandatory upon all employers and employees covered by the SSS and GSIS, and their
respective employers.
Fund Contributions
For Employees:
For Employers:
The contributions to the HDMF shall be remitted through the SSS and GSIS.
Non-payment shall subject the employer to penalty of 3% per month of the amounts
payable from the date the contributions fall due until paid.
Meaning of monthly compensation
The basic monthly salary plus cost of living allowance (COLA). The maximum monthly
compensation to be used in computing employee and employers contributions shall not
be more than Five thousand pesos (P5,000.00).
Term of membership
Suspension of contribution
The obligation to make contributions is suspended when the employee resigns, is laid-
off or suspended from employment.
Withdrawal of contributions
Members who have no outstanding loans may withdraw the total accumulated value of
their contributions to the Fund after the 10 th or 15th year of continuous membership. Can
be exercised only once and shall not prejudice the members continuing membership on
the Fund.
Housing features
A member of good standing may apply for a housing loan, under such terms as may be
authorized by the Board of Trustees, taking into account ability to pay.
The establishment of a separate provident or housing plan after the effectivity of the
HDMF Law is not a ground for waiver of coverage in the Fund.
Substitute retirement plan
Private employers have the option to treat the coverage by the Fund as a retirement
plan for the employee concerned within the purview of the Labor Code of the
Philippines.
Penal Provisions
Refusal or failure register its employees, collect and remit employee contributions as
well as employer counterparts, or the correct amount due, will subject the employer to:
a.)Fine of not less, but not more than twice the amount involved;