How the Pag-IBIG contribution is computed
Pag-IBIG (HDMF) takes 2% of monthly compensation from the employee and 2% from the employer, on a maximum fund salary of ₱10,000, so each side pays at most ₱200 a month.
The rule
Each month the employee contributes 2% of monthly compensation and the employer contributes 2%. The compensation used is capped at the maximum fund salary of ₱10,000.
| Monthly compensation | Employee share | Employer share | Total |
|---|---|---|---|
| ₱5,000 | ₱100 | ₱100 | ₱200 |
| ₱8,000 | ₱160 | ₱160 | ₱320 |
| ₱10,000 and above | ₱200 | ₱200 | ₱400 |
Practical points
- Use the actual compensation for salaries below ₱10,000 and the cap for anything higher.
- Remit both shares together.
- Members who want to save more can ask for a higher employee contribution. The employer share does not rise with it.
Try the free Pag-IBIG calculator to check an amount.
Questions people ask
How much is the Pag-IBIG contribution?
2% of monthly compensation from the employee and 2% from the employer, with the compensation capped at ₱10,000. The most each pays is ₱200 a month.
Can an employee contribute more than ₱200?
Yes, a member can save more voluntarily. The required employer share stays at the capped amount.
Is the Pag-IBIG contribution deducted before tax?
Yes. The employee's mandatory Pag-IBIG contribution is deducted from gross compensation when taxable income is computed.
Sources
- Republic Act No. 9679, Home Development Mutual Fund Law of 2009
- HDMF Circular on the maximum fund salary of ₱10,000