Pag-IBIG Contribution Philippines: Rates, Deadlines and Employer Duties

Last materially reviewed: August 24, 2026

Every employee covered by the SSS or the GSIS is automatically a Pag-IBIG member, and both the employee and the employer must contribute every month. Since February 2024 the salary base used in the computation has been capped at ₱10,000, which puts the standard maximum at ₱200 from the employee and ₱200 from the employer.

Need the definition only? See Pag-IBIG Contribution meaning in the LaborCode.ph Glossary. This guide covers rates, computation, remittance deadlines, penalties and what happens when an employer fails to remit.

The figure most people remember — ₱100 — comes from the ceiling printed in the statute itself. That ceiling was doubled by the Fund’s Board of Trustees without any amendment to the law, which is why reading Republic Act No. 9679 alone produces the wrong answer.

Direct Answer

Under Section 7 of Republic Act No. 9679, an employee earning more than ₱1,500 a month contributes 2% of monthly compensation and the employer contributes 2%, computed on a capped salary base. HDMF Circular No. 460 raised that cap — the Maximum Fund Salary — from ₱5,000 to ₱10,000 effective February 2024.

The practical result for most employees is ₱200 deducted from the payslip and ₱200 paid by the employer, for a total of ₱400 credited to the member every month.

Check your contribution in three steps

1. Estimate your deduction: use the existing Pag-IBIG Contribution Calculator for an ordinary private-sector employee or kasambahay. It estimates the shares; it does not access your account.
2. Check what was posted: open Virtual Pag-IBIG: View Records and sign in to view your savings records. Compare the same contribution months, not just the total balance. For a month-by-month method, see how to check Pag-IBIG contributions online.
3. Investigate a missing month: follow the evidence, payroll-request and Fund follow-up steps below. Keep a dated record; a missing online entry alone does not prove that the employer failed to remit.

Legal Basis

Statute: Republic Act No. 9679, the Home Development Mutual Fund Law of 2009. Section 6 makes coverage mandatory on all employees covered by the SSS and the GSIS and on their employers. Section 7 fixes the contribution rates and the statutory salary ceiling, and expressly allows the Board of Trustees to move that ceiling.

Current ceiling: HDMF Circular No. 460, signed 15 January 2024 and effective February 2024, raised the Maximum Fund Salary from ₱5,000 to ₱10,000. The Department of Budget and Management confirmed the change in Circular Letter No. 2024-2 of 1 February 2024.

Remittance and penalties: HDMF Circular No. 275 sets the staggered remittance schedule and the daily penalty for delay. Section 23 of Republic Act No. 9679 governs the duty to remit, the statutory penalty and collection; Section 25 supplies the criminal penalties.

Decision Snapshot

Question	Practical answer
Who this applies to	Ordinary employees covered by the SSS or the GSIS, and their employers. Private savings or probationary status alone do not remove mandatory coverage. Check the separate kasambahay and other-member qualifications before applying this table.
Core rule	Employees earning more than ₱1,500 a month contribute 2%; those earning ₱1,500 or less contribute 1%. Every employer contributes 2%, whatever the employee earns. Both are computed on monthly compensation capped at the Maximum Fund Salary, currently ₱10,000.
Main boundary	The employer’s 2% share is the employer’s own cost. Section 7 forbids deducting it, directly or indirectly, from the employee’s compensation. If ₱400 is withheld, ask payroll for an itemized explanation; the amount alone does not show whether the employer’s share was passed on to you. Any deduction that recovers the employer’s contribution is prohibited.
Key evidence	Payslips showing the Pag-IBIG deduction, the member’s posted contribution record, the employment contract, and the employer’s remittance receipts. A gap between what the payslip shows as deducted and what is posted to the member record is the practical trigger for raising the issue.
Deadline / rate / period	Standard maximum ₱200 employee plus ₱200 employer. Remittance deadlines are staggered by the first letter of the employer’s registered name, from the 10th to the end of the following month. Under Section 23(e) an action to collect unpaid contributions may be brought within twenty years from the time the delinquency is known.
First next step	Compare payslip deductions with a dated Pag-IBIG record, then ask payroll for payment and reporting references. A missing posting can reflect a reporting or identification error. If the discrepancy remains, ask the Fund to investigate and confirm the correction process.

Key Takeaways

Question	General rule
Employee rate, earning over ₱1,500	2% of monthly compensation
Employee rate, earning ₱1,500 or less	1% of monthly compensation
Employer rate	2%, regardless of what the employee earns
Salary base cap	₱10,000 Maximum Fund Salary since February 2024
Standard maximum per month	₱200 employee + ₱200 employer = ₱400
Deducting the employer share from wages	Prohibited by Section 7
Contributing above the maximum	Allowed voluntarily by the member
Employer failed to remit	Member benefits are preserved under Section 23(d); liability rests with the employer

Jump to a Section

1. What the Pag-IBIG Contribution Is
2. Who Is Covered
3. The Statutory Rates
4. The Salary Cap and Why the Statute Understates It
5. How to Compute the Contribution
6. What the Employer Cannot Do
7. Remittance Deadlines
8. Penalties for Late or Non-Remittance
9. If Your Employer Did Not Remit
10. Criminal Liability
11. Employer Compliance Checklist
12. Frequently Asked Questions
13. Sources

What the Pag-IBIG Contribution Is

The Pag-IBIG contribution is the mandatory monthly payment to the Home Development Mutual Fund, shared between the employee and the employer. It is a savings contribution rather than a tax: the amounts credited to a member accumulate, earn dividends declared by the Fund, and are payable to the member on maturity or on the occurrence of a qualifying event.

That distinction matters when an employer fails to remit. Unremitted contributions are not merely a compliance problem — they are money that should have been accumulating in the member’s name and earning a return.

Who Is Covered

Section 6 of Republic Act No. 9679 states that coverage in the Fund “shall be mandatory upon: (a) all employees covered by the SSS and the GSIS, and their respective employers.”

Coverage is therefore derivative and automatic. If an employee is covered by the SSS or the GSIS, Pag-IBIG coverage follows, and the employer’s duty to register and remit attaches at the same moment. Probationary status alone does not exempt an ordinary employee, and an employee and employer cannot simply agree to disregard mandatory coverage. The separate kasambahay qualification is explained below.

Does the ordinary employee table apply to you?

The employee/employer split and worked table below describe ordinary employee contributions. Do not apply that split automatically to every member category.

Kasambahay: Section 30 of RA 10361 provides social-benefit coverage after at least one month of service. The household employer shoulders the contributions when the monthly wage is below ₱5,000; at ₱5,000 or more, the worker pays the proportionate share provided by law. This is a threshold for who pays, not the Maximum Fund Salary cap. See the existing kasambahay rights and benefits guide and select kasambahay in the calculator. Confirm the applicable Fund registration and remittance procedure for household employers.

Self-employed, OFW or voluntary member: check your category in the Pag-IBIG membership guide and confirm the applicable amount with the Fund before using an employee/employer split. This page does not establish a single payment amount for all those categories.

The Statutory Rates

Section 7 sets three rates:

• Employees earning not more than ₱1,500 per month — 1% of monthly compensation
• Employees earning more than ₱1,500 per month — 2% of monthly compensation
• All employers — 2% of the monthly compensation of all covered employees

The asymmetry is easy to miss. The employee rate steps up at the ₱1,500 threshold; the employer rate is a flat 2% at every salary level. An employee earning ₱1,400 therefore contributes ₱14 while the employer contributes ₱28 on the same figure.

The Salary Cap and Why the Statute Understates It

Section 7 closes with a ceiling and, critically, a delegation. The maximum monthly compensation used in computing contributions “shall not be more than Five thousand pesos (₱5,000.00): Provided, That this maximum may be fixed from time to time by the Board of Trustees through rules and regulations adopted by it, taking into consideration actuarial calculations and rates of benefits.”

That proviso is why the operative figure is not the one printed in the law. HDMF Circular No. 460, signed 15 January 2024 and effective February 2024, raised the Maximum Fund Salary from ₱5,000 to ₱10,000. The Department of Budget and Management independently confirmed it, recording that the maximum fund salary “was increased from P5,000 to P10,000 per month,” producing a contribution “equivalent to P200 per month per employee.”

Anyone computing from the statute alone arrives at ₱100 + ₱100 and is two years out of date.

Figures stated as of August 2026. Because the Board can move the ceiling again without any amendment to the statute, confirm the current HDMF circular before relying on these amounts for payroll.

How to Compute the Contribution

For a worked estimate, use the Pag-IBIG Contribution Calculator. Enter monthly compensation and select private-sector employee or kasambahay to see the employee deduction, employer share and total estimated remittance under the schedule stated in the tool. Compare the result with the rates and exceptions below, and confirm the current Fund rules before applying it to payroll. An estimate does not confirm that a contribution was remitted or posted; for missing payments, follow the non-remittance steps.

For an ordinary employee, the computation has two steps: cap the salary base at the Maximum Fund Salary, then apply the rates. The table shows the standard mandatory amounts, excluding voluntary additional savings and separate loan payments; the kasambahay exception changes who shoulders the shares.

Monthly compensation	Salary base used	Employee share	Employer share	Total credited
₱45,000	₱10,000 (capped)	₱200	₱200	₱400
₱18,000	₱10,000 (capped)	₱200	₱200	₱400
₱10,000	₱10,000	₱200	₱200	₱400
₱8,000	₱8,000	₱160	₱160	₱320
₱1,400	₱1,400	₱14 (1%)	₱28 (2%)	₱42

Note the effect of the cap: every employee earning ₱10,000 or more contributes the same ₱200. Above that threshold the contribution does not scale with salary at all.

What the Employer Cannot Do

Section 7 is explicit: an employer “shall not deduct, directly or indirectly, from the compensation of its employees… the employer’s contribution.”

The employer’s 2% is a cost of employment, not a payroll deduction. Only the employee’s own share may lawfully be withheld from wages. The word “indirectly” closes the obvious workaround: an employer cannot reduce stated pay by the amount of its own counterpart and describe the arrangement as cost-neutral.

If your payslip shows ₱400 withheld for Pag-IBIG, ask payroll to itemize the amount and identify the contribution period and any separately authorized payment. The amount alone does not establish that the employer’s contribution was passed on to you. Recovering the employer’s own contribution from your pay remains prohibited under Section 7 of RA 9679. See Net Pay and Gross Pay for how lawful deductions should appear.

Remittance Deadlines

Pag-IBIG does not use a single date for all employers. HDMF Circular No. 275 staggers the deadline by the first letter of the employer’s registered name, which spreads collections across the month.

First letter of employer name	Remittance period
A to D	10th to 14th day of the month
E to L	15th to 19th day of the month
M to Q	20th to 24th day of the month
R to Z and numerals	25th day to the end of the month

The schedule applies to the month following the payroll month to which the contributions relate. Employers that changed registered name should check which band they now fall into rather than assuming the old one still applies.

Penalties for Late or Non-Remittance

Two measures appear in the sources and they should not be conflated.

Section 23(b) of Republic Act No. 9679 fixes a statutory penalty of “three percent (3%) per month” on unremitted contributions.

HDMF Circular No. 275 expresses the same exposure operationally, as 1/10 of 1% per day of delay.

Circular No. 275 adds a consequence employers routinely overlook. An employer that deducted the employee’s share but failed to remit it is liable for the contributions “including all applicable interests and penalties, as well as the dividends that the contributions could have earned.” The member is made whole for investment growth foregone, not merely for the principal withheld.

Under Section 23(e), unpaid contributions are collectible “in the same manner as taxes… under the National Internal Revenue Code,” and an action may be brought within twenty years from the time the delinquency is known — a far longer window than the three-year prescriptive period that applies to ordinary employment money claims.

If Your Employer Did Not Remit

This is the provision every member should know, and it is unambiguous.

Section 23(d): “Failure or refusal of the employer to pay or to remit the contributions herein prescribed shall not prejudice the right of the covered employee to the benefits under this Act.”

Section 23(d) protects the covered employee’s right to benefits despite the employer’s non-remittance. Report the discrepancy so the Fund can establish what was paid, what was reported and what needs correction. This protection does not automatically post missing savings or approve a loan; the applicable claim or loan requirements still need to be met.

Evidence, reporting and follow-up

1. Compare the same contribution months in your payslips and dated Virtual Pag-IBIG savings record (sign-in required). List the payroll dates, deductions and missing or understated amounts. Check the remittance period and whether a payment, reporting or member-identification error explains the gap.
2. Ask HR or payroll in writing for the payment reference, contribution report, month-by-month reconciliation and proposed correction date. Keep payslips, proof of employment, the agency record and the reply.
3. If the discrepancy remains, contact Pag-IBIG and ask which branch handles the employer, where to submit the report and which documents are currently required. The Fund’s official app support listing gives (02) 8724-4244 and contactus@pagibigfund.gov.ph. Confirm the submission process before sending identity or payroll documents.
4. Keep the acknowledgment, reference number, handling office and agreed follow-up date. Ask for a corrected contribution record when the matter is resolved. If a claim or loan is urgent, provide its reference too and ask the Fund for the specific requirements or review route.

A missing portal entry establishes a discrepancy to investigate, not proof of non-remittance by itself. PhilHealth and SSS records require separate reports to those agencies; see the PhilHealth reporting steps and SSS employer-complaint guide.

Fictional example: check the same contribution month

For illustration only, Ana is an ordinary employee with monthly compensation of ₱18,000. Her September 2026 payslip shows a ₱200 employee deduction, and the standard employer counterpart is ₱200. Her dated savings record does not yet show that month. She records the contribution month, the ₱200 deduction, the expected ₱200 employer counterpart and the date she checked the record, then asks payroll for the actual remittance date, payment reference and employee-level contribution report.

She compares those records with the applicable remittance period before concluding that a payment is overdue. A payment reference without a matching employee report may not settle a posting discrepancy. If the records still do not reconcile, she follows the Fund inquiry steps above and keeps the acknowledgment. This example is a checking method, not an official complaint form or a finding of employer liability.

Criminal Liability

Section 25 provides for a fine “not less than, but not more than twice, the amount involved or imprisonment of not more than six (6) years, or both.”

Where the offender is a corporation, the section directs that “the penalty shall be imposed upon the members of the governing board and the president or general manager.” Liability reaches identified individuals rather than stopping at the corporate entity.

Republic Act No. 9679 does not create the same general 30-day misappropriation presumption found in the SSS and PhilHealth provisions. Section 25 sets its own offense and expressly preserves prosecution of related offenses under the Revised Penal Code and other laws. Liability depends on the facts and the applicable legal process.

Employer Compliance Checklist

• Register covered employees under the applicable membership rules; probationary status alone is not an exemption. For a household worker, check the kasambahay coverage qualification.
• Apply the ₱10,000 Maximum Fund Salary cap before applying the rates, and confirm the current circular before each payroll year.
• Deduct only the employee’s own share. Never pass the employer’s 2% to the employee, directly or indirectly.
• Identify your remittance band from the first letter of the registered employer name and diarise it.
• Reconcile deductions against posted contributions periodically — a deduction that was never remitted accrues penalties and foregone dividends.
• Retain remittance receipts. The twenty-year collection window under Section 23(e) is far longer than ordinary payroll retention practice.

Frequently Asked Questions

How much is deducted from my salary for Pag-IBIG?

For most employees, ₱200. Anyone earning ₱10,000 or more a month is at the capped maximum, so the deduction is the same regardless of salary above that point. Employees earning less contribute 2% of actual monthly compensation, or 1% if they earn ₱1,500 or less.

Why do some sources say the maximum is ₱100?

Because Republic Act No. 9679 still prints a ₱5,000 salary ceiling. The Board of Trustees doubled it to ₱10,000 through HDMF Circular No. 460 effective February 2024, using the express power the same section grants. The statute was never amended, so sources reading only the law give a figure that has been out of date since 2024.

Can I contribute more than ₱200?

Yes. The ₱200 figure is the maximum mandatory employee share on the capped salary base. Members may contribute above it voluntarily. The employer’s counterpart obligation remains fixed at the statutory computation and does not rise to match a voluntary increase.

Is Pag-IBIG deducted from 13th month pay?

Contributions are computed on monthly compensation. Whether a particular pay component forms part of that base is determined by the Fund’s rules; in practice the question is academic for any employee already at the ₱10,000 cap, since the contribution is already at its maximum. See 13th Month Pay.

What happens if my employer deducted but never remitted?

Section 23(d) protects a covered employee’s right to benefits despite employer non-remittance. A missing posting still needs investigation and correction by the Fund; the protection does not automatically credit savings or approve a loan. Keep payslips and a dated member record, ask payroll for remittance and reporting references, and use the Pag-IBIG reporting and follow-up steps. Contact the Fund promptly if a claim or loan application is affected.

Does Pag-IBIG coverage stop when I resign?

Mandatory coverage through an employer ends with the employment, but membership and the accumulated savings do not disappear. A member between jobs may continue contributing voluntarily so that the savings record remains unbroken.

Can my employer deduct its own Pag-IBIG share from my salary?

No. Section 7 of RA 9679 prohibits recovering the employer’s contribution from the employee, even through a contrary contract. Keep the payslip and ask payroll to separate the employee deduction from the employer-paid counterpart.

Is the employer’s Pag-IBIG contribution also credited to my savings?

Yes. Section 10 of RA 9679 requires both personal and employer contributions to be credited to the member’s individual account. Compare your posted record with payroll remittances; the employer’s share is not a fee that the employer keeps.

Does paying Pag-IBIG contributions automatically qualify me for a housing loan?

No. Section 11 of RA 9679 makes housing loans subject to the Fund’s terms and ability-to-pay assessment. Contributions alone do not guarantee approval. See the Pag-IBIG benefits and loan guide before choosing a claim or loan route.

Can I opt out of mandatory Pag-IBIG coverage because I already have private savings?

Private savings alone do not remove mandatory coverage under Section 6 of RA 9679. Check your worker category in the Pag-IBIG membership guide rather than asking payroll to stop deductions without a valid basis.

Additional Official References

• Republic Act No. 9679 — the governing statute, including Sections 6, 7, 23 and 25.
• HDMF Circular No. 460 — the Maximum Fund Salary increase effective February 2024.
• HDMF Circular No. 275 — remittance schedule, daily penalty and liability for foregone dividends.
• Department of Budget and Management Circular Letter No. 2024-2 — independent confirmation of the ceiling increase.

Related LaborCode.ph Guides

• What the Pag-IBIG Fund is
• Pag-IBIG member benefits, claims and loans
• PhilHealth Contribution
• Final Pay

Sources and Legal Citations

1. Republic Act No. 9679, the Home Development Mutual Fund Law of 2009, Sections 6, 7, 23 and 25. Official text. Classification: statute.
2. HDMF Circular No. 460, signed 15 January 2024, effective February 2024 — Maximum Fund Salary raised from ₱5,000 to ₱10,000. Classification: implementing circular.
3. Department of Budget and Management, Circular Letter No. 2024-2, 1 February 2024, confirming the increase and the resulting ₱200 monthly figure. Official text. Classification: government circular.
4. HDMF Circular No. 275, 22 January 2010 — remittance schedule by first letter of employer name, penalty of 1/10 of 1% per day of delay, and liability for dividends the contributions could have earned. Classification: implementing circular.

Last correction / update: 18 October 2026. The computation guide-to-tool route was checked and updated to link to the Pag-IBIG Contribution Calculator. Legal sources, contribution rates and calculator logic were not rechecked or changed.

Disclaimer

This guide is for general educational and legal-information purposes only. It is not legal advice. Contribution ceilings are set by the HDMF Board of Trustees and change without any amendment to the statute, so the current circular should be confirmed before the figures above are applied to payroll.

Last correction / update: 18 October 2026 (Asia/Manila): Four added FAQ answers and the decision snapshot’s deduction-amount clarification were checked against RA 9679, Sections 6, 7, 10 and 11, covering the employer share, member crediting, loan limits and mandatory coverage. The earlier contribution figures, remittance procedures and calculator logic were not rechecked. Existing published corrections and guide/tool links are retained. The FAQ additions and deduction-amount clarification were applied to this page.

Last correction / update: 18 October 2026 (Asia/Manila): The remaining deduction-amount paragraph, contribution-checking route and ordinary-employee scope were checked and updated on this page. The employer-share prohibition was checked against RA 9679, Section 7; the kasambahay payment responsibility and service qualification were checked against RA 10361, Section 30. The public Virtual Pag-IBIG records entry page was checked; signed-in screens were not tested. A fictional reconciliation example was added. These changes were applied to this page on 18 October 2026. This is a partial review: current Fund circulars could not be fully retrieved, and contribution ceilings, payroll components, household remittance procedures, other membership-category amounts and calculator logic were not fully revalidated.