Did you know that the salary deduction based on the latest Pag-IBIG contribution table 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.
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At a Glance: Latest Updates Concerning Pag-IBIG Contributions
1. There will be no increase in the Pag-IBIG membership contribution rate for January 2023
- The mandatory monthly Pag-IBIG contribution remains at ₱100 instead of the expected ₱150. The postponement aims to help members and businesses cope with the economic hardships brought on by the global pandemic1.
- The deferment of the contribution hike is effective until January 2024. Since 1986, Pag-IBIG contribution rates have remained unchanged.
- Pag-IBIG says that the hike will boost the members’ total earnings and help the agency sustain its housing loan program‘s 3% annual interest rate.
2. Overseas Filipino Workers (OFWs) Are Now Required To Pay Their Monthly Pag-IBIG Contributions
Overseas Filipino Workers (OFWs) must 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 must process their Pag-IBIG membership2 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 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., 5.50% in 2022), so the savings grow over time.
Who Can Pay Pag-IBIG Contribution?
Anyone registered with the HDMF with 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 borrow money for personal needs 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.
Additional eligibility requirements depend on the type of loan you’re applying for.
Members who want a Pag-IBIG multi-purpose loan must have paid at least one monthly contribution from the loan application date for the last six months.
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 will likely 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 2023 for Employees and Employers
|Monthly Salary||Employee’s Contribution Rate||Employer’s Contribution Rate||Total|
|At least ₱1,000 to ₱1,500||1%||2%||3%|
Employees and their employers share Pag-IBIG contributions of employed members.
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 removed from their worker’s wages.
Employees earning less than ₱1,500 monthly contribute 1% of their basic salary, while their employers contribute 2%.
Those earning more than ₱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 ₱3,000 monthly basic salary:
- Employee’s share: ₱3,000 x 0.02 = ₱60
- Employer’s share: ₱3,000 x 0.02 = ₱60
The employee’s monthly salary deduction for Pag-IBIG contribution is ₱60. The employer adds ₱60 for a total of ₱120 monthly savings.
Sample computation for a worker with at least ₱5,000 basic monthly salary:
The maximum monthly salary used for Pag-IBIG contribution computation is ₱5,000. This means if your monthly salary is ₱5,000 or higher, your contribution is computed as follows:
- Employee’s share: ₱5,000 x 0.02 = ₱100
- Employer’s share: ₱5,000 x 0.02 = ₱100
Thus, the total monthly saving if you’re earning ₱5,000 is ₱100 (Employee’s share) + ₱100 (Employer’s share) = ₱200.
Regardless of your monthly salary and how much it will increase in the future—as long as it’s equal to or above ₱5,000 — your salary deduction for monthly Pag-IBIG contribution will always be ₱100. Your employer must remit that amount plus the employer counterpart contribution worth ₱100. Your total monthly savings as a Pag-IBIG member is ₱200.
2. Pag-IBIG Contribution Table in 2023 for Self-Employed Members
|Monthly Income||Contribution Rate|
|At least ₱1,000 to ₱1,500||1%|
|Over ₱ 1,500||2%|
Self-earning members (entrepreneurs, freelancers, TNVS/PUV drivers, market vendors, etc.) shoulder their monthly Pag-IBIG contribution.
Use the Pag-IBIG contribution table above and the 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 ₱ 1,500 monthly income:
₱1,500 x 0.01 = ₱15
Sample computation for self-employed members with at least ₱5,000 monthly income:
₱5,000 x 0.02 = ₱100
The Pag-IBIG Fund uses ₱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 ₱5,000—you should pay only at least ₱100 monthly.
However, you may pay an additional ₱100 (for a total monthly savings of ₱200) or higher, especially if you plan to get a Pag-IBIG housing loan.
3. Pag-IBIG Contribution Table in 2023 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 cannot 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|
|₱1,500 and below||1%||2%||3%|
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 ₱5,000 monthly:
Because the maximum monthly income that Pag-IBIG uses for computation is ₱5,000, your contribution is calculated this way:
- OFW’s share: ₱5,000 x 0.03 = ₱150
- Foreign employer’s share: ₱5,000 x 0.03 = ₱150
This means you and your employer should contribute at least ₱150 each. Your total monthly savings is ₱300.
b. For OFWs whose employers are exempted from Pag-IBIG coverage
|Monthly Salary||Contribution Rate|
If your overseas employer is not subject to mandatory Pag-IBIG coverage, you must contribute 2% of your monthly salary. With ₱5,000 as the maximum monthly income used for computing Pag-IBIG contribution, you must pay at least ₱100 monthly contribution.
You may pay the employer counterpart of 2% (₱100) for a total of ₱200 monthly savings, especially if you’ll avail of a Pag-IBIG housing loan.
4. Pag-IBIG Contribution Table in 2023 for a Non-Working Spouse
|50% of the Working Spouse’s Monthly Salary||Pag-IBIG Contribution Rate|
|₱1,500 and below||1%|
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 ₱4,000 per month contributes ₱40 monthly. Here’s how to compute it:
(₱4,000 / 2) x 0.02 = ₱40
The non-working spouse’s contribution rate is 2% because 50% of her working spouse’s salary is ₱2,000, which falls in the salary range of over ₱1,500.
5. Pag-IBIG Contribution Table in 2023 for Kasambahays
|Monthly Salary||Employer’s Contribution Rate||Kasambahay’s Contribution Rate||Total|
|Less than ₱1,500||3%||0%||3%|
|₱1,500 to ₱4,999||4%||0%||4%|
|₱5,000 and above||2%||2%||4%|
Household employers must shoulder the total contribution of their kasambahays with a monthly salary of less than ₱ 5,000. Employers should contribute 3% of their worker’s salary if it’s less than ₱1,500 or 4% if the pay is in the ₱1,500 to ₱4,999 range.
Sample computation for a kasambahay earning ₱3,000 monthly:
- Employer’s share: ₱3,000 x 0.04 = ₱120
- Kasambahay’s share: None
Kasambahays earning ₱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 contribution.
Sample computation for a kasambahay earning at least ₱5,000 monthly:
- Employer’s share: ₱5,000 x 0.02 = ₱100
- Kasambahay’s share: ₱5,000 x 0.02 = ₱100
This means kasambahays earning ₱5,000 and above have a total Pag-IBIG monthly savings of ₱200.
Why You Should Consider Increasing Your Monthly Pag-IBIG Contribution
You can contribute an amount higher than the minimum the Pag-IBIG Fund requires.
Your Pag-IBIG contribution goes directly to the Pag-IBIG Regular Savings Program. It’s like putting your money in a bank, except the government manages it. The benefit of saving money in a government-guaranteed savings facility is 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 rates3 in the last 10 years:
|Year||Pag-IBIG Regular Savings Dividend Rate|
The table above shows that Pag-IBIG Fund Regular Savings Program’s dividend rate is upward. 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 must reach a certain milestone before being 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, 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 Pag-IBIG contributions you’ve paid will be used to compute 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, indicating 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 match the increased contribution or 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
Make sure to enter your Pag-IBIG number correctly each time you contribute.
Your payment cannot be processed if the wrong number is entered into the third-party service’s system. Or worse, it may get credited to somebody else’s account.
2. Always keep your official receipts
Don’t discard the official receipt or machine-validated transaction slip issued after paying your contribution. It’s your proof of payment when you need to report any issue with 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 list down all your employers and periods of employment correctly. Also, provide a photocopy of your two valid IDs (and marriage certificate if you 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. Is Pag-IBIG contribution compulsory? Can I skip payments or not pay at all?
Payment is required for mandatory Pag-IBIG members such as employees, self-employed members, OFWs, and kasambahays. The Pag-IBIG Fund law makes coverage compulsory for these groups, so their contributions must be remitted.
Meanwhile, it’s optional for voluntary members. Although skipping payments doesn’t lead to a penalty, it’s better to continue remitting your contributions (whether as a mandatory or voluntary member) to qualify for a Pag-IBIG benefit and save more for retirement.
2. What is the Total Accumulated Value?
Your Total Accumulated Value (TAV) consists of all your remitted contributions, employer share (if any), and total dividend earnings in your account—from your first remittance to the latest one.
The HDMF uses the TAV to determine how much to lend to member-borrowers. For instance, when you need a Pag-IBIG calamity loan, you may borrow up to 80% of your TAV.
When your Pag-IBIG membership terminates, the HDMF will return your TAV to you minus any outstanding Pag-IBIG loan balance you have.
3. I stopped paying contributions years ago. How can I continue paying as a voluntary member?
Here’s how to reactivate your Pag-IBIG membership and continue making payments:
Step 1: Fill out the Member’s Change of Information Form (MCIF) to update your membership information (e.g., from employed to self-employed).
Step 2: Visit the nearest Pag-IBIG branch and submit the accomplished MCIF and two valid IDs.
Step 3: Pay your contribution in the same branch. Your succeeding contributions can be paid through any accredited payment channel.
On the other hand, if you’re wondering whether Pag IBIG allows retroactive payments (i.e., payment of contributions you weren’t able to pay throughout the time your membership was inactive), this is what they have to say:
“No retroactive payment of contributions shall be allowed except for unremitted collections paid by the employer, which shall be applied retroactively upon proof that such contributions were previously collected or deducted from the employee.”
4. Can expats pay Pag-IBIG contributions?
Yes, foreigners living and working in the Philippines can pay the regular Pag-IBIG savings and/or MP2 savings as voluntary members.
In the past, expats were required to contribute to Pag-IBIG. Their employers would deduct contributions from their salary and remit to the HDMF. But because most expats stay briefly and temporarily in the Philippines, the Pag-IBIG Fund issued last January 2019 a circular that repeals mandatory membership for expatriates.
5. Can I pay contributions in advance?
Yes, Pag-IBIG accepts advance payments for contributions. You can pay a month, a quarter, or even a year ahead. Since the HDMF imposes no limit on how long in advance members can pay, you may opt to pay as far ahead as you wish, depending on how much you can afford.
Making an advance payment for an entire year is more convenient than paying monthly. Also, it ensures you won’t be missing a payment.
6. My contribution record doesn’t reflect my actual payment. How can I correct the error?
If there’s an inconsistency between your actual payments and the updated contribution record, contact the collecting partner to whom you remitted your contribution. Ask for the status of your Pag-IBIG contribution remittance.
Payments made through third-party services take two to three working days to be posted to a member’s record. So you may have to wait until your payment gets credited to your Pag-IBIG account.
If the collecting partner told you that your payment had already been transmitted to Pag-IBIG, contact the HDMF. You may need to visit a branch and show your official receipts for the months your contribution isn’t posted.
7. What will happen to my previous contributions if I become an OFW?
Your past contributions will remain under your name even if you work abroad. You won’t lose your savings.
The Pag-IBIG Fund will merge your contributions from your former local employment with those from your present overseas employment. Just request to consolidate your membership records.
Also, don’t forget to update your membership category to OFW. Before you leave the country, go to a Pag-IBIG branch and submit an accomplished Member’s Change of Information Form.
8. Which is better: increase my regular Pag-IBIG contributions or save my money under MP2?
The better savings strategy for you will depend on your goal.
If you want to grow your savings faster, put your money in the MP2. The MP2 program has higher dividend rates at a shorter five-year maturity than the regular Pag-IBIG savings program (where your monthly contribution goes).
However, if you plan to get a Pag-IBIG housing loan, you’re better off upgrading your monthly contribution. Paying higher monthly contributions will help you qualify for a higher loan amount.
Have both goals in mind? If you can save more, increase your contribution and save under the MP2 simultaneously. Why choose only one when you can do both?
9. My employer is not paying my Pag-IBIG contributions. Can I still apply for a Pag-IBIG loan? What should I do?
Under the HDMF law, members are still entitled to Pag-IBIG benefits (including short-term loans) even if their employers fail or refuse to remit their contributions.
When applying for a Pag-IBIG loan, you may try submitting your payslips, ITR, and other documents that prove your salary deductions for Pag-IBIG contribution. However, unremitted contributions affect the amount you’ll receive from the Pag-IBIG Fund when claiming your total contributions.
The TAV paid to you will be based on employee and employer contribution payments. You’d get only a partial release of your TAV (based on the actual amount credited to your account) if your employer didn’t remit your contributions.
If your employer eventually pays the unremitted contributions, the HDMF will pay you the amount collected from the delinquent employer.
If your employer fails to remit your Pag-IBIG contributions, raise your concern to the HR department. If nothing happens, file a complaint with the HDMF against the erring employer.
Under the Pag-IBIG Fund law, delinquent employers may be charged a fine of not less than but not more than twice the unremitted amount, jailed for six years or less, or both.
- Pag-IBIG declares record-high P31.79B as 2021 dividends; Regular Savings at 5.5%, MP2 at 6%. (2022, March 15). Retrieved January 9, 2023, from https://www.pagibigfund.gov.ph/2022news.html#:~:text=The%20final%20dividend%20rates%20are,Savings%20and%206%25%20for%20MP2
- 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