What is the Pag-IBIG contribution table for 2026?
The 2026 Pag-IBIG contribution table is unchanged from the rates set by HDMF Circular No. 460, which took effect in February 2024 and remains in force this year. Pag-IBIG (the Home Development Mutual Fund, or HDMF) is a mandatory government savings and housing-loan fund for Filipino workers. Your monthly contribution is a percentage of your salary, split between you and your employer, but capped because Pag-IBIG only counts the first P10,000 of monthly pay, called the Maximum Fund Salary (MFS).
| Monthly Compensation | Employee Share | Employer Share | Total |
|---|---|---|---|
| P1,500 and below | 1% | 2% | 3% of salary |
| Over P1,500 | 2% (capped at P200) | 2% (capped at P200) | Up to P400 |
Because the MFS is P10,000, the most any employee is required to contribute is 2% of P10,000 = P200, matched by another P200 from the employer, for a maximum mandatory total of P400 per month. This applies whether you earn P11,000 or P110,000.
How much is the Pag-IBIG contribution if you earn P15,000, P25,000, or more?
If you earn more than P10,000 a month, your mandatory Pag-IBIG deduction is a flat P200, no matter how high your salary climbs. The percentage stops applying past the P10,000 ceiling.
Worked example - Liza, an office worker in Quezon City. Liza earns P25,000 a month. Her Pag-IBIG share is not 2% of P25,000 (P500); it is 2% of the P10,000 MFS, which is P200. Her employer adds P200, so Pag-IBIG receives P400 monthly toward Liza's Regular Savings. On her payslip, only the P200 employee share is deducted from her gross pay.
Worked example - Mang Tonyo, a part-time helper. Mang Tonyo earns P1,400 a month, below the P1,500 threshold. He pays the reduced employee rate of 1% (P14), while his employer still pays 2% (P28). His total is P42. The 1% employee rate applies only to this lowest bracket.
How do you compute your Pag-IBIG contribution step by step?
Computing your Pag-IBIG contribution takes two steps: cap your salary at P10,000, then apply your rate. The formula is Fund Salary (max P10,000) x rate = your share.
- Step 1 - Take your monthly basic salary. Say Ramon earns P18,000.
- Step 2 - Apply the P10,000 cap. Pag-IBIG only counts P10,000 of Ramon's P18,000.
- Step 3 - Multiply by 2%. P10,000 x 0.02 = P200 employee share.
- Step 4 - Add the employer's matching 2%. Another P200, for P400 total credited to Ramon's account.
Pag-IBIG savings are separate from your income tax. They do not directly reduce your taxable income the way some assume, but they are a mandatory deduction that lowers your take-home pay. To see how SSS, PhilHealth, Pag-IBIG, and withholding tax together shape your net salary, run the numbers through our salary tax calculator or estimate your annual tax with the income tax calculator.
How much do self-employed, freelancers, and OFWs pay to Pag-IBIG in 2026?
Self-employed members, freelancers, and OFWs pay both the employee and employer shares themselves, so the mandatory rate is effectively 4% of fund salary, capped at P400 a month. There is no separate employer to match your contribution.
Worked example - Joy, a freelance graphic designer in Cebu. Joy declares a P40,000 monthly income but has no employer. Her required Pag-IBIG contribution is 2% + 2% = 4% of the P10,000 cap, which is P400. Many freelancers and self-employed taxpayers choose to pay exactly P400 to stay active and qualify for housing and multi-purpose loans. If you are a freelancer or OFW, you may also voluntarily pay more than P400 to grow your savings faster.
Before you can contribute as a professional, you typically need a TIN and BIR registration. See our guides on how to get a TIN and registering as a freelancer with the BIR.
What is Pag-IBIG MP2 and is it worth it in 2026?
MP2 (Modified Pag-IBIG II) is an optional, higher-yield savings program on top of your mandatory Regular Savings. It is a five-year voluntary account that historically pays a higher dividend than Regular Savings, and the returns are tax-free.
For 2025, Pag-IBIG declared an MP2 dividend rate of 7.12%, up from 7.10% the prior year, while Regular Savings earned 6.62%. Dividend rates are declared after each year based on the fund's net income, so they are not guaranteed for future years. The Department of Finance has confirmed that savings in SSS, GSIS, and Pag-IBIG, including MP2, remain tax-free. MP2 is separate from and on top of the mandatory P200 contribution; you can save as little as P500 to start.
Common mistakes Filipinos make with Pag-IBIG contributions
The most common error is computing the contribution on full salary instead of the P10,000 cap, which overstates the deduction. Here are the mistakes we see most often:
- Applying 2% to your entire salary. A P30,000 earner is not deducted P600; the cap fixes it at P200. Always apply the P10,000 MFS first.
- Confusing the employer share with a deduction. Only your P200 employee share leaves your pay; the employer's P200 is paid on top, not from your wage.
- Missing the remittance deadline. Employers remit contributions monthly, with the due date depending on the first letter of the employer's name under Pag-IBIG's staggered schedule (commonly summarized as on or before the 10th day of the following month for the earliest group). Late remittance triggers penalties.
- Self-employed members underpaying. If you pay only one 2% share (P200) instead of both, your account may be flagged as under-contributed for loan eligibility.
- Treating MP2 as mandatory. MP2 is optional. Do not let an agent pressure you; mandatory Pag-IBIG is just the P200 Regular Savings.
How does Pag-IBIG fit with your other government contributions?
Pag-IBIG is one of three mandatory deductions, alongside SSS and PhilHealth, that appear on every Filipino payslip before tax. Each is computed differently. SSS uses a bracketed Monthly Salary Credit table, PhilHealth uses a flat 5% premium, and Pag-IBIG uses the simple P10,000-capped 2% rule explained here.
For the companion rates, see our SSS contribution table 2026 and PhilHealth contribution table 2026 guides. Once all three deductions are settled, your remaining pay is subject to income tax under the graduated tables, or the optional 8% rate if you are self-employed, explained in our 8% vs graduated income tax guide.
This article is for general guidance and reflects the 2026 rates under HDMF Circular No. 460. Always confirm figures against the official Pag-IBIG Fund website before remitting or filing.
Sources and References
The rates, thresholds, and rules on this page are drawn from official Philippine government issuances and reputable tax references. Tax rules change; always confirm current figures with the relevant agency before acting.
- HDMF Circular No. 460 - Guidelines on the Increase in the Maximum Fund Salary (MFS) Effective February 2024 — Pag-IBIG Fund (HDMF)
- Pag-IBIG logs record P64.34-B dividends; raises savings dividend rates (MP2 7.12%, Regular Savings 6.62%) — Philippine News Agency
- Pag-IBIG announces record P64.34B dividend for 2025; regular savings earn 6.62%, MP2 yields 7.12% — GMA News Online
- What is Pag-IBIG's MP2, and can you really earn 7% a year? — Rappler
- Understanding the Pag-IBIG Contribution Schedule: A Complete Guide — GreatDay HR