Under Republic Act No. 9679, otherwise known as the Home Development Mutual Fund Law of 2009, membership in the Pag-IBIG Fund is mandatory for all employees covered by the Social Security System (SSS) and the Government Service Insurance System (GSIS), including foreign nationals working in the Philippines. However, the law provides specific mechanisms for the withdrawal of total accumulated value (TAV) for members who are either non-Filipino citizens or Filipino citizens permanently emigrating to another country.

Grounds for Withdrawal: Permanent Departure

The primary legal basis for the early withdrawal of contributions by non-Filipino citizens or emigrants falls under the category of "Termination of Membership due to Permanent Departure from the Country."

Unlike regular members who typically must wait for 20 years of membership or reach the age of 60 to withdraw their savings, those leaving the Philippines permanently are entitled to a refund of their total contributions, including employer counterparts and earned dividends.

1. Non-Filipino Citizens (Expatriates)

Foreign nationals who have been formally employed in the Philippines and have contributed to the Fund are eligible to claim their TAV upon the expiration of their employment contract or the cessation of their residency in the Philippines.

Eligibility: The member must be leaving the Philippines permanently with no immediate intent to return for employment.
Key Requirement: Proof of termination of employment and cancellation of the Alien Employment Permit (AEP) or work visa.

2. Filipino Emigrants

Filipino citizens who have acquired foreign citizenship or have been granted permanent residency status in another country (e.g., Green Card holders, PR status in Canada/Australia) are eligible to withdraw their TAV regardless of their age or years of contribution.

Eligibility: Must provide legal proof of permanent residency or citizenship in a foreign country.
Voluntary Members: If a Filipino emigrant continued paying as a "Voluntary Member" from abroad, they may still opt to withdraw their funds based on their permanent departure status.

Documentary Requirements

To process the Provident Benefit Claim, the claimant must submit the following documents to any Pag-IBIG branch (or via the Virtual Pag-IBIG platform):

Basic Requirements

Application for Provident Benefit Claim (APB): The official form, duly accomplished.
Valid Government ID: Passport, PR Card, or foreign citizenship ID.
Member's Services Record: If available, to reconcile contribution history.

Specific Requirements for Emigrants/Non-Filipinos

For Emigrants: Photocopy of the Permanent Resident Card, Immigrant Visa, or Citizenship Certificate.
For Non-Filipino Citizens: * Passport with proof of departure or intent to depart.
- Notarized Certificate of Employment Termination (from the Philippine employer).
For those filing from abroad: All documents must be Apostilled (or authenticated by the Philippine Embassy/Consulate) if the country of residence is not a party to the Apostille Convention.

The Payout Process

The Total Accumulated Value (TAV) consists of:

Member Contributions: The total amount deducted from the employee's salary.
Employer Counterpart: The matching contributions made by the employer.
Dividends: The annual earnings credited to the member's account.

Methods of Release

Payroll Account/Disbursement Card: The funds are credited to the member's Pag-IBIG Loyalty Card Plus or a linked bank account.
Check: A manager’s check issued to the member (requires physical presence or a specific Special Power of Attorney).
Direct Credit: To a Philippine bank account via PESONet or similar electronic fund transfer systems.

Legal Considerations and Limitations

Outstanding Loans

If the member has an outstanding Multi-Purpose Loan (MPL) or Housing Loan, the balance of the loan (including interests and penalties) will be automatically deducted from the TAV before the remaining proceeds are released.

Tax Exemptions

Pursuant to Section 19 of R.A. 9679, all provident benefit payouts from the Pag-IBIG Fund, including dividends, are wholly exempt from any tax. The member is entitled to the full amount of their savings without any withholding tax from the Philippine government.

Irrevocability of Withdrawal

Once the TAV is withdrawn due to permanent departure, the membership is terminated. If a non-Filipino citizen returns to the Philippines for new employment at a later date, they must register as a new member and begin a new contribution history.