Pag-IBIG (the Home Development Mutual Fund, or HDMF) is a government savings program that also gives members access to housing and short-term loans. The mandatory monthly contribution is small and easy to compute.
The rates
Your mandatory contribution depends on your monthly salary:
| Monthly salary | You pay | Employer pays |
|---|---|---|
| ₱1,500 and below | 1% | 2% |
| Over ₱1,500 | 2% | 2% |
The ₱10,000 cap (why most people pay exactly ₱200)
Here’s the key detail: the salary used to compute Pag-IBIG is capped at ₱10,000. Since February 2024, this cap was raised from ₱5,000 to ₱10,000.
That means once you earn more than ₱10,000 a month, your contribution stops growing — it’s fixed at 2% × ₱10,000 = ₱200, matched by ₱200 from your employer. So whether you earn ₱12,000 or ₱120,000, your mandatory Pag-IBIG deduction is the same ₱200.
Your share = 2% × min(salary, 10,000) → max ₱200
Employer share = 2% × min(salary, 10,000) → max ₱200Worked examples
| Monthly salary | Your share | Employer share | Total |
|---|---|---|---|
| ₱1,000 | ₱10 (1%) | ₱20 | ₱30 |
| ₱5,000 | ₱100 | ₱100 | ₱200 |
| ₱15,000 | ₱200 (capped) | ₱200 | ₱400 |
| ₱50,000 | ₱200 (capped) | ₱200 | ₱400 |
Notice what the cap does to the table: below ₱10,000 the contribution rises with your salary, and above it the line goes completely flat. A ₱15,000 earner and a ₱50,000 earner pay exactly the same ₱200. That makes Pag-IBIG the most predictable of the three mandatory deductions — and, for most people, by far the smallest.
The one rate change that catches people out
There is a single step in the schedule, at ₱1,500. At or below that salary your share is 1%; above it, 2%. The employer always pays 2%.
That produces a small oddity at the boundary: on a ₱1,500 salary you pay ₱15, while on ₱1,600 you pay ₱32 — the rate doubles as you cross the line, so your contribution slightly more than doubles for a ₱100 raise. It’s a rounding quirk of the schedule rather than a mistake, and it only affects earners near that threshold.
How Pag-IBIG compares to your other deductions
Pag-IBIG is capped far earlier than the other two mandatory contributions, which is why it barely moves on most payslips:
| Deduction | Cap on the salary used | Your maximum share |
|---|---|---|
| SSS | ₱35,000 (Monthly Salary Credit) | ₱1,750 |
| PhilHealth | ₱100,000 | ₱2,500 |
| Pag-IBIG | ₱10,000 (fund salary) | ₱200 |
So on a ₱60,000 salary, Pag-IBIG is under 6% of your total mandatory contributions — the other two do nearly all the work. All three are deducted before withholding tax is computed, so none of them is taxed. See the combined effect on the Take-Home Pay Calculator, or the full side-by-side on the contribution tables page.
What the ₱200 actually buys you
Here’s the difference that matters: unlike withholding tax, a Pag-IBIG contribution is your money. It accumulates in your own member savings rather than disappearing into general revenue, and membership is what opens up the fund’s housing and short-term loan programs. If a house is anywhere in your plans, keeping your contribution record unbroken matters more than the size of the monthly amount.
For the exact terms — how savings are credited and returned, and what each loan program requires — check directly with Pag-IBIG, since those rules sit outside the contribution schedule this guide covers.
Planning a housing loan? Estimate the monthly amortization with the home loan calculator.
Common mistakes
- Assuming the ₱200 cap is a maximum on what you can save. It’s only the mandatory maximum. Voluntary contributions and MP2 sit on top of it.
- Thinking the employer’s ₱200 comes out of your pay. It doesn’t — your payslip shows your ₱200 only; the employer’s match is an additional cost to the company.
- Expecting the old ₱100 figure. The fund salary cap doubled from ₱5,000 to ₱10,000 in February 2024, which doubled the maximum share from ₱100 to ₱200. Guides still quoting ₱100 are out of date.
- Confusing member savings with MP2. They’re separate accounts with different terms and different dividend rates.
Want to save more? Meet MP2
Because the mandatory contribution is capped at ₱200, many members open a separate Pag-IBIG MP2 (Modified Pag-IBIG II) account to save more and earn the higher MP2 dividend. MP2 is voluntary, has a 5-year term, and its tax-free dividend (recently ~7%) is typically higher than a regular savings account. See the Pag-IBIG MP2 calculator to project your returns.
Frequently asked questions
What is the maximum Pag-IBIG contribution? The maximum mandatory contribution is ₱200/month for you (2% of the ₱10,000 cap), matched by ₱200 from your employer. You can voluntarily contribute more.
Can I contribute more than ₱200? Yes. You can elect to contribute above the mandatory amount, or save separately through MP2 for a higher return.
Why is my Pag-IBIG deduction still ₱200 after a raise? Because the fund salary is capped at ₱10,000. Once your monthly salary passes that, the mandatory contribution is fixed at 2% × ₱10,000 = ₱200 and stops responding to raises entirely.
Is Pag-IBIG deducted from my 13th-month pay? The mandatory contribution is computed on your monthly salary, subject to the ₱10,000 fund-salary cap — and since most earners are already at the ₱200 ceiling, the 13th month makes no difference to the amount.
Does this guide cover self-employed and voluntary members? No — the rates and the ₱200 cap above describe the employed case, where the contribution is split with an employer. If you pay your own contributions, confirm the amount that applies to you with Pag-IBIG.
Compute your contribution with the Pag-IBIG Contribution Calculator, or see your full net pay with the Take-Home Pay Calculator.