The Pag-IBIG contribution is 2% from the employee and 2% from the employer, computed on monthly compensation capped at ₱10,000 — so each side pays at most ₱200 a month.
By the Orkids payroll engineering team · Reviewed against HDMF Circular No. 460 and the Home Development Mutual Fund Law of 2009 (RA 9679) · Updated June 2026
Employee share
₱0.00
= ₱0.00 base × 1%
Employer share
₱0.00
= ₱0.00 base × 2%
Total monthly
₱0.00
employee + employer, remitted to Pag-IBIG.
The contribution base is capped at the Maximum Fund Salary of ₱10,000, so the employee and employer shares each stop at ₱200 once monthly compensation reaches ₱10,000. Members may voluntarily contribute above the mandatory rate. Estimate only — confirm with Pag-IBIG (HDMF).
How is the Pag-IBIG contribution computed?
Your Pag-IBIG contribution is your monthly compensation, capped at the ₱10,000 Maximum Fund Salary, multiplied by the employee and employer rates set by HDMF Circular No. 460.
For most employees the rate is 2% from the employee and 2% from the employer. Because the contribution base is capped at ₱10,000, both the employee and employer shares stop at ₱200 once monthly compensation reaches ₱10,000. For monthly compensation of ₱1,500 or below, the employee rate is 1% while the employer rate stays at 2%. These figures are current as of June 2026 — verify the current rate with Pag-IBIG (HDMF).
Pag-IBIG contribution table (2026)
The table below shows the employee and employer share at three compensation levels, including the ₱10,000 cap where each share reaches its ₱200 maximum.
| Monthly compensation | Employee rate | Employer rate | Employee share | Employer share |
|---|---|---|---|---|
| ₱1,500 | 1% | 2% | ₱15 | ₱30 |
| ₱5,000 | 2% | 2% | ₱100 | ₱100 |
| ₱10,000 and above | 2% | 2% | ₱200 | ₱200 |
The ₱10,000 row is the cap: any monthly compensation at or above ₱10,000 yields the same ₱200 employee and ₱200 employer share, because the contribution base never exceeds the Maximum Fund Salary.
What are the Pag-IBIG rates for low-income earners?
If monthly compensation is ₱1,500 or below, the employee rate is 1% and the employer rate is 2%.
Above ₱1,500, both the employee and employer rates are 2%. The employer share is always at least 2%, so a lower-paid employee still receives the full employer counterpart. This split is set by HDMF Circular No. 460 and applies to the Home Development Mutual Fund (Pag-IBIG) membership.
Can you contribute more than the mandatory rate?
Yes — members may voluntarily contribute above the mandatory rate to grow their Pag-IBIG savings.
Many members raise their contribution to build their regular savings, which earn annual dividends, or to fund the Pag-IBIG MP2 savings program. The employer is only obliged to remit the mandatory 2% employer share; any voluntary increase comes from the member. Confirm the current options with Pag-IBIG (HDMF).
Pag-IBIG employer remittance deadline and penalty (2026)
The existing page covers the rates and the ₱10,000 cap; what it does not yet show is the remittance side — when the employer must remit and what late remittance costs. Pag-IBIG contributions are remitted by the employer to the Home Development Mutual Fund. The monthly remittance deadline is commonly applied on a staggered schedule keyed to the first letter of the employer's business name, and late remittance carries a statutory penalty of 1/10 of 1% (0.1%) of the amount due per day of delay. Schedules vary by source — confirm your own remittance deadline with Pag-IBIG (HDMF).
| Item | Rule (2026) | Worked detail |
|---|---|---|
| Standard remittance deadline | Commonly a staggered monthly schedule by first letter of the employer's business name | A–D: 10th–14th · E–L: 15th–19th · M–Q: 20th–24th · R–Z / numeral: 25th–end of month, of the month following the applicable period — confirm your bracket with Pag-IBIG |
| Late remittance penalty | 1/10 of 1% (0.1%) of the amount due, per day of delay | ₱400 due, paid 5 days late = ₱400 × 0.001 × 5 = ₱2 penalty |
| New-hire registration | Employer reports/registers each new hire within 30 days of the hiring date | Uses the Member Registration / data form |
| Maximum monthly contribution | ₱200 employee + ₱200 employer = ₱400 total | Reached once monthly compensation hits the ₱10,000 Maximum Fund Salary |
Remittance-deadline practice differs across sources: many describe a staggered schedule keyed to the first letter of the company name (A–D 10th–14th; E–L 15th–19th; M–Q 20th–24th; R–Z/numeral 25th–end of month), while some cite a fixed 15th. Confirm which schedule applies to you with Pag-IBIG (HDMF). The penalty is computed from the day after the deadline until full payment. Source: Home Development Mutual Fund Law of 2009 (RA 9679) and HDMF remittance guidelines.
Pag-IBIG contribution — frequently asked questions
- How much is the Pag-IBIG contribution in 2026?
- For monthly compensation above ₱1,500, the employee pays 2% and the employer pays 2%. The contribution base is capped at a Maximum Fund Salary of ₱10,000, so each share is at most ₱200 — ₱400 total per month. These rates are set by HDMF Circular No. 460.
- What is the Maximum Fund Salary for Pag-IBIG?
- The Maximum Fund Salary (MFS) is ₱10,000 as of June 2026. The contribution base is capped at ₱10,000, so even if your monthly compensation is higher, the mandatory employee and employer shares are each computed on ₱10,000 — a maximum of ₱200 each.
- What are the Pag-IBIG rates for low-income earners?
- If monthly compensation is ₱1,500 or below, the employee rate is 1% and the employer rate is 2%. Above ₱1,500, both the employee and employer rates are 2%. The employer share never drops below 2%.
- Can I contribute more than the mandatory Pag-IBIG amount?
- Yes. Members may voluntarily contribute above the mandatory rate. Many members raise their contribution to increase their Pag-IBIG MP2 savings or their regular savings dividends. The employer is only obliged to remit the mandatory employer share.
- Who pays the Pag-IBIG contribution — employee or employer?
- Both. The employee share is deducted from the employee's pay, and the employer adds its own 2% share. The employer remits the combined amount to the Home Development Mutual Fund (Pag-IBIG) on the member's behalf.
- Is the Pag-IBIG contribution the same as SSS and PhilHealth?
- No. Pag-IBIG (HDMF) is a separate housing and savings fund with its own rates under HDMF Circular No. 460. SSS is governed by the Social Security Act and PhilHealth by the Universal Health Care Act. Each contribution is computed and remitted separately.
- What is the penalty for late Pag-IBIG remittance?
- Late remittance carries a penalty of 1/10 of 1% (0.1%) of the amount due for every day of delay, counted from the day after the deadline until full payment. For a ₱400 monthly contribution paid five days late, that is ₱400 × 0.001 × 5 = ₱2. Persistent failure to remit can also expose the employer to the penalties under the Home Development Mutual Fund Law of 2009 (RA 9679).
- Are self-employed, voluntary, and OFW members covered by the same Pag-IBIG rates?
- Membership is mandatory for employees, self-employed persons, and Overseas Filipino Workers (OFWs) under the Home Development Mutual Fund Law of 2009 (RA 9679). Self-employed and voluntary members shoulder the full contribution themselves since there is no employer counterpart, but the same ₱10,000 Maximum Fund Salary and 2% rate apply, so the mandatory amount is ₱200 per month. They may also save more voluntarily.
Key terms
- HDMF.
- Home Development Mutual Fund, the official name of the agency that runs Pag-IBIG, governed by the Home Development Mutual Fund Law of 2009 (Republic Act 9679).
- Maximum Fund Salary (MFS).
- The ₱10,000 ceiling on the contribution base. Even if monthly compensation is higher, the mandatory shares are computed on ₱10,000, so each side pays at most ₱200.
- Membership Savings.
- Pag-IBIG's term for the contributions credited to a member's account; these earn annual dividends and form the basis of the member's Total Accumulated Value (TAV).
- MP2 Savings.
- The Modified Pag-IBIG II Savings Program — a voluntary 5-year savings facility, separate from mandatory contributions, that historically pays a higher dividend rate than Regular Savings and whose earnings are tax-free.
- Total Accumulated Value (TAV).
- A member's total Pag-IBIG savings — own contributions plus employer counterpart plus accumulated dividends — claimable at maturity, retirement, or other qualifying grounds.
- HDMF Circular No. 460.
- The circular that raised the Maximum Fund Salary to ₱10,000 and set the current employee and employer contribution rates that took effect in 2024 and remain in force in 2026.
Sources
- HDMF Circular No. 460 — Pag-IBIG Fund contribution rates and the ₱10,000 Maximum Fund Salary, as of June 2026.
- Home Development Mutual Fund (Pag-IBIG) — official agency: pagibigfund.gov.ph. Verify the current contribution schedule with Pag-IBIG (HDMF).
- Estimates are for guidance only. Rates change by circular — confirm your computation with Pag-IBIG (HDMF).
Last reviewed: June 2026
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