Start with the mandatory share
Scroll across to see all columns.
| Monthly fund salary | Employee share | Employer share | Quick reading |
|---|---|---|---|
| Up to PHP 1,500 | 1% | 2% | Lower-wage bracket under the Pag-IBIG schedule. |
| Above PHP 1,500 | 2% | 2% | Common payroll rate for most employees. |
| Above PHP 10,000 | Usually capped at PHP 200 | Usually capped at PHP 200 | The cap applies to mandatory Regular Savings after Circular 460. |
The payroll line is usually small, so errors are easy to miss. Separate Pag-IBIG Regular Savings from loan amortization and MP2. A bigger deduction may be correct if you authorized extra savings or if a loan is being collected.
Example: salary above the cap
Employee earning PHP 18,000 per month
The salary is above the PHP 10,000 maximum fund salary for mandatory Regular Savings.
PHP 10,000 × 2% = PHP 200 employee share; PHP 10,000 × 2% = PHP 200 employer share.
If the payslip shows PHP 200 for Pag-IBIG savings, that can be correct even though 2% of PHP 18,000 is PHP 360. The contribution is based on the capped fund salary unless you have an approved higher voluntary amount.
What to check on the payslip
A payslip deduction does not prove the contribution has posted. Check the member account when possible and compare the month, employer name and amount.
- Employee share deducted from salary.
- Employer counterpart posted separately and not taken from the employee.
- Loan amortization shown as a different line from Regular Savings.
- Posting in the Pag-IBIG account, not only on the payslip.
- Any voluntary increase backed by your request or company policy.
When leaving a job
Ask HR to identify the last month remitted and whether any deduction from final pay covers a contribution month or a loan. Keep the final payslip and the Pag-IBIG posting screenshot together so a missing month is easier to trace.
Pag-IBIG contributions are different from final pay, 13th-month pay and separation pay. Treat each as a separate line when checking an exit computation.
Who usually needs Pag-IBIG contributions
Mandatory Pag-IBIG membership covers most employees who are covered by SSS, subject to the Pag-IBIG law and implementing rules. In practice, payroll should not treat Pag-IBIG as optional simply because the amount is small.
New employees should confirm that the employer uses the correct Pag-IBIG MID number. A deduction under the wrong record can be harder to trace later than a missing deduction that is caught immediately.
- Private-sector employees normally expect both employee and employer shares.
- A newly hired employee should check the first payslip and the member account after posting.
- A voluntary member or self-employed worker may follow a different payment process.
- MP2 savings are separate from mandatory Regular Savings.
Common payroll mistakes to catch
The most common problem is mixing several Pag-IBIG items into one payslip label. A line called only "Pag-IBIG" might include Regular Savings, a calamity loan, a housing loan or a voluntary top-up. Ask payroll to break the line out if the amount is higher than expected.
Another common mistake is assuming that the employer counterpart was deducted from the employee because the payslip shows only one number. The employer share should be an employer cost, not an extra salary deduction.
- Deduction above PHP 200 with no explanation.
- Loan amortization hidden inside the contribution line.
- No employer counterpart shown in payroll records.
- Contribution deducted but not posted in the member account.
- Wrong employer name or missing month in the Pag-IBIG account.
Fast answer for employees
If your monthly pay is above PHP 10,000 and your payslip shows a PHP 200 employee Pag-IBIG contribution, that is usually the expected mandatory Regular Savings deduction after the maximum fund salary increase. If your payslip shows more, check whether the extra amount is a loan, MP2, voluntary savings or a payroll error.
If your pay is below the cap, multiply the applicable contribution basis by the applicable rate and compare the result with the deduction. Keep this simple: the first goal is to identify whether the deduction is plausible, not to audit the entire remittance cycle.
For employers: what to document
Keep the employee deduction, employer counterpart and remittance proof easy to trace by month. If an employee questions the amount, the answer should not depend on one payroll person remembering what happened.
For new hires and separated employees, document the first and last covered month. These are the periods most likely to create gaps in member records.
Sources
- Pag-IBIG Fund Circular 460: Maximum Fund Salary increaseMaximum Fund Salary increased to PHP 10,000 effective February 2024
- Pag-IBIG Fund Circular 275: Employer registration, contribution and remittanceEmployer deduction, counterpart contribution and remittance duties
- Republic Act 9679: Home Development Mutual Fund Law of 2009Pag-IBIG Fund membership and contribution authority
General educational information. Eligibility, company agreements and the facts of a dispute can change the answer. This guide has not been reviewed by a Philippine labor lawyer. Ask DOLE or a qualified professional about a contested entitlement.