Did you know that the Pag-IBIG contribution deducted from your monthly salary will go a long way for your future?
You won’t realize—much less appreciate—the value of your contributions until you get a Pag-IBIG loan or withdraw your funds when you retire. In short, paying your Pag-IBIG contributions is saving money for your future.
Keep reading to understand the Pag-IBIG savings in detail, including the contribution table for every member category, how much you should contribute, how to make a payment, and the different ways to check your contribution.
Table of Contents
- At a Glance: Latest Updates Concerning Pag-IBIG Contributions
- What Is Pag-IBIG Savings I?
- Who Can Pay Pag-IBIG Contribution?
- Where Do Your Contributions Go?
- Why Pay Your Contribution Regularly?
How To Compute Your Pag-IBIG Contribution
- 1. Pag-IBIG Contribution Table in 2022 for Employees and Employers
- 2. Pag-IBIG Contribution Table in 2022 for Self-Employed Members
- 3. Pag-IBIG Contribution Table in 2022 for OFWs
- 4. Pag-IBIG Contribution Table in 2022 for a Non-Working Spouse
- 5. Pag-IBIG Contribution Table in 2022 for Kasambahays
- Why You Should Consider Increasing Your Monthly Pag-IBIG Contribution
- How To Upgrade Your Pag-IBIG Contribution
- Tips and Warnings
Frequently Asked Questions
- 1. I want to make sure my contributions are being remitted to my Pag-IBIG account. How can I check or verify it?
- 2. I save money with Pag-IBIG but I want to earn higher dividends. How can I upgrade my account?
- 3. When should I pay my Pag-IBIG contributions?
- 4. How can I pay my Pag-IBIG contributions?
- 5. Is Pag-IBIG contribution compulsory? Can I skip payments or not pay at all?
- 6. What is the Total Accumulated Value?
- 7. I stopped paying contribution years ago. How can I continue paying as a voluntary member?
- 8. Can expats pay Pag-IBIG contribution?
- 9. Can I pay contributions in advance?
- 10. Can I make a lump-sum payment to reach the required 24 monthly contributions for Pag-IBIG housing loan?
- 11. My contribution record doesn’t reflect my actual payment. How can I correct the error?
- 12. What will happen to my previous contributions if I become an OFW?
- 13. Which is better: increase my regular Pag-IBIG contributions or save my money under MP2?
- 14. My employer is not paying my Pag-IBIG contributions. Can I still apply for a Pag-IBIG loan? What should I do?
- 15. When can I claim my Pag-IBIG contributions?
- 16. How can I withdraw my contributions?
- 17. When can I withdraw my MP2 savings?
- 18. How can I claim my MP2 savings?
- 19. What will happen to the unclaimed contributions of a deceased member?
At a Glance: Latest Updates Concerning Pag-IBIG Contributions
1. An Increase in Pag-IBIG Contributions Will Take Effect by January 2023
- For the first time in three decades, the Pag-IBIG Fund Board of Trustees has approved a contribution hike that was supposed to take effect in 20211.
- However, due to the 2020 pandemic that has crippled the economy, the Pag-IBIG Fund decided to defer the said contribution hike and originally rescheduled it to January 20222.
- As of December 2021, the Pag-IBIG Fund has decided to once again postpone the scheduled increase in monthly contributions due to the ongoing impact of the pandemic and “out of respect for our partners, stakeholders, especially the employers in the private sector”3. The contribution hike will take effect at the beginning of 2023.
- From the current Php 100, the mandatory monthly contribution will increase to Php 150 by January 2023 and further go up to Php 200 by January 2025. The employer’s share of the contribution will have the same increase.
- Pag-IBIG says that the hike will not only boost the members’ total earnings but also help the agency sustain the 3% annual interest rate of its housing loan program.
2. Overseas Filipino Workers (OFWs) Are Now Required To Pay Their Monthly Pag-IBIG Contributions
Overseas Filipino Workers (OFWs) are now required to encode their Pag-IBIG Membership Identification (MID) numbers online in their POEA e-Registration System accounts. This will enable OFWs to pay their monthly contributions conveniently via the POEA website. All OFWs are required to process their Pag-IBIG membership4, otherwise, they won’t be able to obtain the required Overseas Employment Certificate (OEC).
What Is Pag-IBIG Savings I?
Pag-IBIG Savings I, also called Provident Savings, is a regular savings program for all members of the Pag-IBIG Fund or Home Development Mutual Fund (HDMF).
For employees, this involves a salary deduction for Pag-IBIG contribution with their employer’s share of contribution.
For other types of Pag-IBIG members (i.e., self-employed, OFW, etc.), this involves paying out of pocket for their contribution.
Every contribution payment is saved in the HDMF under the member’s name. It earns dividends yearly (i.e., 6.91% in 2018), so the savings grow over time.
Who Can Pay Pag-IBIG Contribution?
Anyone who is registered with the HDMF and has a Pag-IBIG MID number or registration tracking number (RTN) can contribute.
Paying your first contribution makes your Pag-IBIG membership official. Your membership starts on the date of your first payment as reflected on your Pag-IBIG Fund receipt.
Where Do Your Contributions Go?
The Pag-IBIG Fund uses the contributions collected from members to provide short-term and housing loans. You can also enjoy the same benefits as a Pag-IBIG member when you need to borrow money for a personal need or a home purchase.
Why Pay Your Contribution Regularly?
There’s no penalty when you skip paying a monthly Pag-IBIG contribution. However, inconsistent payments can affect your Pag-IBIG loan approval and the amount you can borrow.
To qualify for any Pag-IBIG loan, members must have paid at least 24 monthly contributions.
There are additional eligibility requirements depending on the type of loan you’re applying for.
Members who want to get a Pag-IBIG multi-purpose loan must have paid at least one monthly contribution for the last six months from the loan application date.
Those who need to avail of the Pag-IBIG calamity loan must have made at least five monthly contribution payments for the last six months before the loan application date.
The amount you can loan also depends on the total contributions you’ve paid so far. Usually, the Pag-IBIG loan amount is 80% of the borrower’s total remitted Pag-IBIG contributions. If you have gaps in your monthly contribution payments, you’re likely to get approved for a lower amount.
How To Compute Your Pag-IBIG Contribution
“How much should I contribute to Pag-IBIG?”
If you’re wondering how much the minimum monthly savings is, find the applicable Pag-IBIG contribution table below based on your present employment (or non-employment) status.
1. Pag-IBIG Contribution Table in 2022 for Employees and Employers
|Monthly Salary||Employee’s Contribution Rate||Employer’s Contribution Rate||Total|
|At least Php 1,000 to Php 1,500||1%||2%||3%|
|Over Php 1,500||2%||2%||4%|
Pag-IBIG contributions of employed members are shared by employees and their employers.
The employee’s share of the contribution is deducted from the monthly salary. In addition, employers pay their share of the contribution for every employee—this amount must never be deducted from their worker’s salaries.
Employees earning less than Php 1,500 monthly contribute 1% of their basic salary, while their employers contribute 2%.
Those earning more than Php 1,500 monthly contribute 2% of their basic salary, while their employers contribute 2%.
To compute how much you have to pay as an employee or employer, use the Pag-IBIG contribution table above and this formula:
Pag-IBIG contribution = Monthly Basic Salary x Employee’s or Employer’s Contribution Rate
Sample computation for a worker with Php 3,000 monthly basic salary:
- Employee’s share: Php 3,000 x 0.02 = Php 60
- Employer’s share: Php 3,000 x 0.02 = Php 60
The employee’s monthly salary deduction for Pag-IBIG contribution is Php 60. The employer adds Php 60, for a total of Php 120 monthly savings.
Sample computation for a worker with at least Php 5,000 monthly basic salary:
The maximum monthly salary used for Pag-IBIG contribution computation is Php 5,000. This means if your monthly salary is Php 5,000 or higher, your contribution is computed as follows:
- Employee’s share: Php 5,000 x 0.02 = Php 100
- Employer’s share: Php 5,000 x 0.02 = Php 100
Regardless of your monthly salary and how much it will increase in the future—as long as it’s equal to or above Php 5,000—your salary deduction for monthly Pag-IBIG contribution will always be Php 100. Your employer is required to remit that amount plus the employer counterpart contribution worth Php 100. Your total monthly savings as a Pag-IBIG member is Php 200.
2. Pag-IBIG Contribution Table in 2022 for Self-Employed Members
|Monthly Income||Contribution Rate|
|At least Php 1,000 to Php 1,500||1%|
|Over Php 1,500||2%|
Self-earning members (entrepreneurs, freelancers, TNVS/PUV drivers, market vendors, etc.) shoulder their full monthly Pag-IBIG contribution.
Use the Pag-IBIG contribution table above and formula below to compute how much you’ll pay as monthly savings to Pag-IBIG:
Pag-IBIG contribution = Monthly Income x Contribution Rate
Sample computation for a self-employed member with Php 1,500 monthly income:
Php 1,500 x 0.01 = Php 15
Sample computation for self-employed members with at least Php 5,000 monthly income:
Php 5,000 x 0.02 = Php 100
The Pag-IBIG Fund uses Php 5,000 as the maximum income for computing a self-employed member’s contribution. This means regardless of how much you earn—as long as it’s equal to or higher than Php 5,000—you should pay only at least Php 100 monthly.
However, you may opt to pay an additional Php 100 (for a total monthly savings of Php 200) or higher, especially if you plan to get a Pag-IBIG housing loan in the future.
3. Pag-IBIG Contribution Table in 2022 for OFWs
As of 2022, payment of Pag-IBIG contributions is now mandatory for OFWs. In a joint advisory released by Pag-IBIG and POEA, OFWs are instructed to encode their acquired Pag-IBIG MID number through their respective POEA e-Registration accounts, making it easier to pay the mandatory contribution via the POEA website. OFWs who will not comply with this new policy won’t be able to process and obtain the required Overseas Employment Certificate or OEC.
a. For OFWs whose employers are subject to mandatory Pag-IBIG coverage
|Monthly Salary||OFW’s Contribution Rate||Foreign Employer’s Contribution Rate||Total|
|Php 1,500 and below||1%||2%||3%|
|Over Php 1,500||2%||2%||4%|
Use the table above for computing your monthly savings if your overseas employer is required to share in paying your Pag-IBIG contribution.
Sample computation for OFWs earning at least Php 5,000 monthly:
Because the maximum monthly income that Pag-IBIG uses for computation is Php 5,000, your contribution is calculated this way:
- OFW’s share: Php 5,000 x 0.02 = Php 100
- Foreign employer’s share: Php 5,000 x 0.02 = Php 100
This means you and your employer should contribute at least Php 100 each. Your total monthly savings is Php 200.
b. For OFWs whose employers are exempted from Pag-IBIG coverage
|Monthly Salary||Contribution Rate|
|Over Php 1,500||2%|
If your overseas employer is not subject to mandatory Pag-IBIG coverage, then you’re required to contribute 2% of your monthly salary. With Php 5,000 as the maximum monthly income used for computing Pag-IBIG contribution, you must pay at least Php 100 monthly contribution.
You may choose to pay the employer counterpart of 2% (Php 100), for a total of Php 200 monthly savings, especially if you’ll avail of a Pag-IBIG housing loan in the future.
4. Pag-IBIG Contribution Table in 2022 for a Non-Working Spouse
|50% of Working Spouse’s Monthly Salary||Pag-IBIG Contribution Rate|
|Php 1,500 and below||1%|
|Over Php 1,500||2%|
Computing the Pag-IBIG contribution of a non-working-spouse member is based on half of the employed spouse’s monthly salary.
For example, a full-time housewife whose husband earns Php 4,000 per month contributes Php 40 monthly. Here’s how to compute it:
(Php 4,000 / 2) x 0.02 = Php 40
The non-working spouse’s contribution rate is 2% because 50% of her working spouse’s salary is Php 2,000, which falls in the salary range of over Php 1,500.
5. Pag-IBIG Contribution Table in 2022 for Kasambahays
|Monthly Salary||Employer’s Contribution Rate||Kasambahay’s Contribution Rate||Total|
|Less than Php 1,500||3%||0%||3%|
|Php 1,500 to Php 4,999||4%||0%||4%|
|Php 5,000 and above||2%||2%||4%|
Household employers must shoulder the full contribution of their kasambahays with a monthly salary of less than Php 5,000. Employers should contribute 3% of their worker’s salary if it’s less than Php 1,500 or 4% if the salary is in the Php 1,500 to Php 4,999 range.
Sample computation for a kasambahay earning Php 3,000 monthly:
- Employer’s share: Php 3,000 x 0.04 = Php 120
- Kasambahay’s share: None
Kasambahays earning Php 5,000 or higher are required to pay the 2% employee’s share through salary deduction. Their employer should also add 2% of their monthly salary to their total monthly contribution.
Sample computation for a kasambahay earning at least Php 5,000 monthly:
- Employer’s share: Php 5,000 x 0.02 = Php 100
- Kasambahay’s share: Php 5,000 x 0.02 = Php 100
This means kasambahays earning Php 5,000 and above have a total Pag-IBIG monthly savings of Php 200.
Why You Should Consider Increasing Your Monthly Pag-IBIG Contribution
You can contribute an amount that’s higher than the minimum required by the Pag-IBIG Fund.
Your Pag-IBIG contribution goes directly to the Pag-IBIG Regular Savings Program. It’s like putting your money in a bank, except your money is being managed by the government. The benefit of saving money in a government-guaranteed savings facility is you get high annual dividend earnings. This is because Pag-IBIG invests at least 70% of its funds in housing finance, corporate funds, and government securities.
According to Pag-IBIG Fund, the Regular Savings Program enjoyed the following dividend rates5 in the last 10 years:
|Year||Pag-IBIG Regular Savings Dividend Rate|
As you can see in the table above, Pag-IBIG Fund Regular Savings Program’s dividend rate is on an upward trajectory. And just like any savings account, you can withdraw all the money you’ve saved.
However, Pag-IBIG is not your regular bank so you have to reach a certain milestone before you can be qualified to withdraw your savings. If you want to save money that earns a higher dividend rate but can be withdrawn after a shorter period of time, you may consider opening a separate Pag-IBIG MP2 Savings account.
Saving more with the Pag-IBIG Regular Savings Program will also help you qualify for higher Pag-IBIG loan amounts.
This is especially helpful when you’re applying for a Pag-IBIG housing loan. The amount of Pag-IBIG contributions you’ve paid will be used as a basis for computing how much you can borrow.
The higher the amount you contribute, the higher the loan amount you’re entitled to.
Increasing your monthly Pag-IBIG savings is a wise long-term strategy, especially when you get a raise or earn extra income. The HDMF has been performing well financially, which is an indication of how it manages its members’ money.
How To Upgrade Your Pag-IBIG Contribution
For employees: Inform your HR department or employer that you want to pay a higher monthly Pag-IBIG contribution. You’ll be asked to sign a form (i.e., “Request for Upgrading Savings” Form) for the monthly savings increase. Your employer may either match the increased contribution or contribute only the amount it’s currently remitting.
For individually paying members: No need to submit anything. Simply pay the higher monthly savings. Your payment will be credited automatically to your total Pag-IBIG savings.
Do you want to grow your money with Pag-IBIG? Read this: How to Invest in Pag-IBIG MP2 Program: An Ultimate Guide
Tips and Warnings
1. Provide your correct Pag-IBIG MID number
Each time you pay a contribution, make sure to enter your Pag-IBIG number correctly.
If the wrong number is entered into the third-party service’s system, your payment cannot be processed. Or worse, it may get credited to somebody else’s account.
Lost or forgot your Pag-IBIG MID number? Click here to learn how to recover it.
2. Always keep your official receipts
Don’t throw away the official receipt or machine-validated transaction slip issued to you after paying your contribution. It’s your proof of payment for when you need to report any issue about your contribution.
3. For members with past employers: Have your Pag-IBIG records consolidated
Have you changed employers throughout your career?
If so, your contribution records are likely scattered in different Pag-IBIG branches where your past employers paid your monthly savings.
For example, Employer A remitted your contributions to the Makati branch, Employer B remitted to the Ortigas branch, and so on.
This can cause a problem when you get a Pag-IBIG loan or withdraw your savings in the future. Because your payment records aren’t centralized, not all your contributions may be included in your benefit computation.
To ensure a hassle-free availment of your Pag-IBIG benefits, have all your contributions from your former and current employers merged into just one record.
Ask the Pag-IBIG Fund to consolidate your records by submitting an accomplished request form for consolidation/merging of members’ records. Make sure to correctly list down all your employers and periods of employment. Also, provide a photocopy of your two valid IDs (and marriage certificate, if you got married recently) for data validation.
The consolidation request takes around 20 working days to process. After that period, call the Pag-IBIG hotline (724-4244) to check if all your records have been merged.
Frequently Asked Questions
1. I want to make sure my contributions are being remitted to my Pag-IBIG account. How can I check or verify it?
10. Can I make a lump-sum payment to reach the required 24 monthly contributions for Pag-IBIG housing loan?
14. My employer is not paying my Pag-IBIG contributions. Can I still apply for a Pag-IBIG loan? What should I do?
- Llemit, R. (2020). Pag-ibig to increase contributions in 2021. Retrieved 29 December 2020, from https://www.sunstar.com.ph/article/1834602
- Hernando-Malipot, M. (2020). Pag-IBIG contribution rate hike moved to 2022. Retrieved 29 December 2020, from https://mb.com.ph/2020/12/02/pag-ibig-contribution-rate-hike-moved-to-2022/
- Caraballo, M. (2021). Pag-IBIG defers contribution hike anew. Retrieved 16 December 2021, from https://www.manilatimes.net/2021/12/13/business/top-business/pag-ibig-defers-contribution-hike-anew/1825734
- Philippine Overseas Employment Administration (POEA) and Pag-IBIG Fund. (2022). Joint POEA – Pag-IBIG Fund Advisory No. 01, series of 2022 (Mandatory Requirement of Pag-IBIG Member ID (MID) Number. Retrieved from https://www.pagibigfund.gov.ph/document/pdf/popsite/Joint%20POEA%20-%20Pag-IBIG%20Fund%20Advisory_Signed.pdf
- Regular Savings. Retrieved 17 June 2021, from https://www.pagibigfund.gov.ph/Membership_RegularSavings.html