The Pag-IBIG Fund, officially known as the Home Development Mutual Fund (HDMF), is one of the Philippines’ most vital financial institutions. It serves millions of Filipinos by providing accessible savings programs and affordable housing loan options. Understanding the updated Pag-IBIG contribution table 2025 and its implications is crucial for employees, employers, and self-employed individuals alike.
In this article, we’ll dive into the details of the Pag-IBIG contribution table 2025, explore how contributions are computed, and highlight the benefits of being a member. By the end, you’ll have a clear understanding of your obligations and the advantages of contributing to the Pag-IBIG Fund.
The Pag-IBIG Fund was established to provide Filipinos with a reliable savings platform while supporting their dreams of homeownership. Contributions to the fund allow members to access various benefits, including short-term loans, savings with annual dividends , and housing loans at competitive interest rates.
The fund operates through monthly contributions shared by employees, employers, and, in some cases, self-employed individuals. These contributions are crucial for sustaining the fund and ensuring that members can take advantage of its benefits.
In February 2024, the Pag-IBIG Fund implemented changes to the contribution structure, as outlined in HDMF Circular No. 460 . These adjustments remain in effect for 2025. Here’s a breakdown of the updated contribution table:
Monthly Compensation Employee Share Employer Share ₱1,500 and below 1% 2% Over ₱1,500 2% 2%
The most notable change is the increase in the Maximum Fund Salary (MFS) from ₱5,000 to ₱10,000 . This adjustment affects the maximum monthly contribution, which is now capped at ₱200 each for the employee and employer, totaling ₱400.
For self-employed individuals, the monthly contribution amounts to ₱400, as they are responsible for both the employee and employer shares.
Example Calculations
For an employee earning ₱2,000 per month :
Employee share: 2% of ₱2,000 = ₱40 Employer share: 2% of ₱2,000 = ₱40 Total monthly contribution : ₱80 For an employee earning ₱12,000 per month :
Employee share: Capped at ₱200 Employer share: Capped at ₱200 Total monthly contribution : ₱400 The implementation of the increased Maximum Fund Salary allows members to contribute more, which translates to higher savings and greater benefits. Here are a few points to consider:
Enhanced Savings : Members’ contributions, combined with annual dividends, create a substantial savings pool over time.Higher Loan Amounts : Housing loans and multi-purpose loans are often tied to the member’s contributions. Higher contributions could lead to higher loanable amounts.Sustainability : The increased contribution cap ensures that the Pag-IBIG Fund remains financially robust, benefiting both current and future members. Employer Obligations
Employers are mandated to contribute 2% of their employees’ monthly compensation. This share cannot be deducted from the employee’s salary. Instead, it is a separate obligation borne by the employer.
Employers must also ensure timely remittance of the total contributions (employee share + employer share) to the Pag-IBIG Fund. Late payments may incur penalties and interest.
Employee Obligations
Employees must contribute based on their monthly compensation, up to the MFS. These contributions are automatically deducted from their salaries and forwarded to the Pag-IBIG Fund by their employer.
Voluntary membership is available to individuals who are not formally employed but wish to enjoy the benefits of being a Pag-IBIG member. These include:
Self-employed professionals Overseas Filipino Workers (OFWs) Freelancers Informal sector workers Non-working spouses Kasambahay Contributions
Under Republic Act No. 10361 or the “Kasambahay Law,” household employers are required to remit the Pag-IBIG contributions of their kasambahays. Contributions are calculated based on the kasambahay’s monthly salary. Household employers are responsible for the employer share if the salary of the kasambahay is less than ₱5,000.
Kasambahay Salary Employee Share Employer Share ₱1,500 and below 0 3% Over ₱1,500 and Less than ₱5,000 0 4% ₱5,000 and above 2% 2%
Regular contributions to the Pag-IBIG Fund provide access to several benefits:
1. Savings with Dividends
Pag-IBIG savings earn annual dividends, making it a reliable and secure investment for members. Over time, these savings can grow significantly, especially with consistent contributions.
2. Housing Loans
The Pag-IBIG Fund offers affordable housing loan programs for members who wish to purchase, construct, or renovate their homes. These loans feature competitive interest rates and flexible payment terms.
3. Multi-Purpose Loans
Members can apply for short-term loans to address financial needs such as education, medical expenses, or business capital. The loanable amount depends on the member’s total accumulated savings and contributions.
4. Calamity Loans
In times of natural disasters, members in affected areas can access calamity loans to help them recover and rebuild.
Monitoring your contributions is essential to ensure accuracy and track your savings growth. Here’s how you can check your contributions:
Via the Pag-IBIG Online Portal :
Visit the Pag-IBIG website. Log in to your account or create one if you’re a first-time user. Access the contribution summary to view your total contributions. Through the Pag-IBIG Mobile App :
Download the app from the Google Play Store or Apple App Store. Log in to your account and navigate to the contributions section. In-Person Inquiry :
Visit the nearest Pag-IBIG branch. Provide your Pag-IBIG MID number and valid identification to request a contribution statement. You can also follow our detailed instructions how to check Pag-IBIG Contribution online .
The updated Pag-IBIG contribution table for 2025 reflects the fund’s commitment to improving member benefits while ensuring its financial sustainability. By understanding these updates, both employees and employers can ensure compliance and maximize the advantages of Pag-IBIG membership.
Whether you’re a salaried employee, self-employed professional, OFW, kasambahay, or non-working spouse, regular contributions to the Pag-IBIG Fund provide you with financial security, valuable savings, and access to affordable loans. Stay informed and take full advantage of what the Pag-IBIG Fund has to offer—it’s a step toward achieving your financial and housing goals.
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Disclaimer: This article is intended for informational purposes only and does not constitute official advice or guidance from the Pag-IBIG Fund. While every effort has been made to ensure the accuracy of the information provided, readers are encouraged to verify details with the official Pag-IBIG Fund website or directly consult their representatives for the most up-to-date and accurate information regarding contributions, policies, and benefits
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