WHEREAS, it is the objective of the government to provide its employees with maximum support for low-cost housing program;

WHEREAS, the National Government has initiated the Home Development Mutual Fund, known as PAG-I.B.I.G., a home financing program for both public and private employees;

WHEREAS, Letter of Instructions No. 937 specifically declares that for CY 1980, the national government counterpart in the PAG-I.B.I.G. Housing Program shall form part of the scheduled increases in the compensation of government employees;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by law; do hereby Order and Direct:

1. This Letter shall apply to regular officials and employees of (a) agencies of the national government, including state universities and colleges, (b) local government units, and (c) government-owned or controlled corporations.

2. The employer ™s counterpart required in CY 1980 for national government employees enrolling in the PAG-I.B.I.G. Program shall be paid by the national government out of the Salary Adjustment Fund provided by B.P. No. 40 or other funds available for the purpose. Funding in 1981 and subsequent years shall be estimated and provided for under a separate lump-sum in the General Appropriations Bill.

3. The employer ™s counterpart for PAG-I.B.I.G. participation of officials and employees in government-owned or controlled corporations shall be charged to their respective corporate funds.

The Governing Board of a corporation may limit the participation of its employees in canes where corporate funds are inadequate or in cases where the corporation is already supporting directly or indirectly, employee housing activities.

4. The employer ™s counterpart for PAG-I.B.I.G. participation of officials and employees in state universities and colleges shall be charged to their respective Special Funds or to savings in their General Fund Allocations.

5. The employer ™s counterpart for PAG-I.B.I.G. participation of officials and employees in local government units shall be charged to local funds. Participation of local government officials or employees may be limited to such extend as may be called for by limits in local finances.

6. The funding sources identified by this Letter shall be available effective May 1, 1980.

7. The rules guidelines and procedures necessary to carry out this Letter shall be formulated and issued by the Minister of the Budget.

Done in the City of Manila, this 12th day of May, in the year of Our Lord, nineteen hundred and eighty.

(SGD.) FERDINAND E. MARCOS
President of the Philippines