Pag-IBIG (the Home Development Mutual Fund, or HDMF) is a government savings program that also gives members access to housing and short-term loans. The mandatory monthly contribution is small and easy to compute.
The rates
Your mandatory contribution depends on your monthly salary:
| Monthly salary | You pay | Employer pays |
|---|---|---|
| ₱1,500 and below | 1% | 2% |
| Over ₱1,500 | 2% | 2% |
The ₱10,000 cap (why most people pay exactly ₱200)
Here’s the key detail: the salary used to compute Pag-IBIG is capped at ₱10,000. Since February 2024, this cap was raised from ₱5,000 to ₱10,000.
That means once you earn more than ₱10,000 a month, your contribution stops growing — it’s fixed at 2% × ₱10,000 = ₱200, matched by ₱200 from your employer. So whether you earn ₱12,000 or ₱120,000, your mandatory Pag-IBIG deduction is the same ₱200.
Your share = 2% × min(salary, 10,000) → max ₱200
Employer share = 2% × min(salary, 10,000) → max ₱200Worked examples
| Monthly salary | Your share | Employer share | Total |
|---|---|---|---|
| ₱1,000 | ₱10 (1%) | ₱20 | ₱30 |
| ₱5,000 | ₱100 | ₱100 | ₱200 |
| ₱15,000 | ₱200 (capped) | ₱200 | ₱400 |
| ₱50,000 | ₱200 (capped) | ₱200 | ₱400 |
Want to save more? Meet MP2
Because the mandatory contribution is capped at ₱200, many members open a separate Pag-IBIG MP2 (Modified Pag-IBIG II) account to save more and earn the higher MP2 dividend. MP2 is voluntary, has a 5-year term, and its tax-free dividend (recently ~7%) is typically higher than a regular savings account. See the Pag-IBIG MP2 calculator to project your returns.
Frequently asked questions
What is the maximum Pag-IBIG contribution? The maximum mandatory contribution is ₱200/month for you (2% of the ₱10,000 cap), matched by ₱200 from your employer. You can voluntarily contribute more.
Can I contribute more than ₱200? Yes. You can elect to contribute above the mandatory amount, or save separately through MP2 for a higher return.
Compute your contribution with the Pag-IBIG Contribution Calculator, or see your full net pay with the Take-Home Pay Calculator.