Republic Act No. 7742: An Act Amending Presidential Decree No. 1752, As Amended

Republic Act No.
7742
AN ACT AMENDING PRESIDENTIAL DECREE NO. 1752, AS AMENDED.
REPUBLIC ACT NO. 7742

AN ACT AMENDING PRESIDENTIAL DECREE NO. 1752, AS
AMENDED.
SECTION 1. Section 4 of Presidential Decree No. 1752, as amended,

which was repealed by Executive Order No. 90, is hereby reinstated,
with amendments, to read as follows:
"Sec. 4. Fund Coverage. — Coverage of the Fund shall be mandatory
upon all employees covered by the Social Security System and the
Government Service Insurance System and their respective
employers: Provided, however, That coverage of the employees
whose Monthly Compensation is less than Four thousand pesos
(P4,000.00) shall be voluntary: Provided further, That upon
membership with the Fund, their employers shall contribute an
amount in accordance with Section 5 of this Act.
chan robles virtu al la w library
"Such coverage may be extended to other working groups, with or

without employer contributions, as may be determined by the Board
of Trustees." chan robles virtual law librar y
Sec. 2. Section 5 of Presidential Decree No. 1752, as amended, is

further amended to read as follows:
"Sec. 5.Fund Contributions. — Covered employees and employers

shall contribute to the Fund based on the Monthly Compensation of
covered employees as follows:
"Employees earning not more than One thousand five hundred pesos
(P1,500.00) per month — one percent (1%). chanrobles virtual law library
"Employees earning more than One thousand five hundred pesos

(P1,500.00) per month — two percent (2%).
"All employers — two percent (2%) of the monthly compensation of
all covered employees.
"For purposes of this Section, "Monthly Compensation" shall mean
the basic monthly salary plus Cost of Living Allowance
(COLA):Provided, however, That the maximum Monthly
Compensation to be used in computing employee and employer
contributions shall not be more than Five thousand pesos
(P5,000.00). The employer shall not be entitled to deduct from the
wages or remuneration of, or otherwise to recover from the
employee the employer's contribution."
Sec. 3. Section 6 of Presidential Decree No. 1752, as amended, is

hereby further amended to read as follows:
"Sec. 6.Membership Term. — Membership in the Fund shall be for a

period of twenty (20) years, except when earlier terminated by
reason of retirement, disability, insanity, death, departure from the
country or other causes as may be provided for by the Board of
Trustees: Provided, That those who become members of the Fund
after the effectivity of this Act may withdraw the total accumulated
value of their contributions to the Fund after the tenth or the
fifteenth year of continuous membership: Provided, further, That
said members have no outstanding housing loans with the
Fund:Provided, finally, That this option may be exercised only once
and shall not prejudice the member's continuing membership in the
Fund.chanrobles virtual law library
"Resignation, lay-off or suspension from employment may not

necessarily constitute a ground for membership termination, except
for suspension of contributions." chan robles virtual la w library
Sec. 4. Section 10(c) of Presidential Decree No. 1752, as amended, is

hereby amended to read as follows:
"(c) to invest not less than seventy percent (70%) of its investable
fund to housing, in accordance with this Act;"
Sec. 5. Promulgation of Rules and Regulations. — Within sixty (60)
days from the approval of this Act, the Board of Trustees of the
Home Development Mutual Fund shall promulgate the rules and
regulations necessary for the effective implementation of this Act.
Sec. 6. Sunset Provision. — Every three (3) years after the
effectivity of this Act, the Congress shall conduct a "sunset review"
of the Fund which shall entail a systematic evaluation of the Fund
to determine whether or not the Fund's performance, impact or
accomplishments with respect to its objectives or goals, the Fund
merits continued existence.Such review shall be undertaken by the
Committees of the Senate and the House of Representatives which
have legislative jurisdiction over the Fund. cralaw
chan robles virtual law library
Sec. 7. Repealing Clause. — Section 10(b), (c) and (d) of Executive

Order No. 90 are hereby repealed and all laws, executive orders,
rules or regulations, or any part thereof, inconsistent with any
provisions of this Act are hereby repealed or modified accordingly.
cralaw
Sec. 8. Effectivity. — This Act shall take effect fifteen (15) days
after its complete publication in the Official Gazette or in at least
two (2) national newspapers of general circulation, whichever comes
first.
Approved: June 17, 1994

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Republic Act No.

REPUBLIC ACT NO. 7742

SECTION 1. Section 4 of Presidential Decree No. 1752, as amended,

"Such coverage may be extended to other working groups, with or

Sec. 2. Section 5 of Presidential Decree No. 1752, as amended, is

"Sec. 5.Fund Contributions. — Covered employees and employers

"Employees earning more than One thousand five hundred pesos

Sec. 3. Section 6 of Presidential Decree No. 1752, as amended, is

"Sec. 6.Membership Term. — Membership in the Fund shall be for a

"Resignation, lay-off or suspension from employment may not

Sec. 4. Section 10(c) of Presidential Decree No. 1752, as amended, is

Sec. 7. Repealing Clause. — Section 10(b), (c) and (d) of Executive

Approved: June 17, 1994

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