Decent shelter is the right of every Filipino. Unfortunately, buying or building your own house can be quite costly. This is where the Housing Development Mutual Fund (HDMF) or Pag-IBIG Fund comes in. The Pag-IBIG Fund provides housing loans and financing to ordinary Filipinos so that they can afford decent housing. So if you’re an HDMF member or if you’re interested in joining Pag-IBIG, you might want to know the Pag-IBIG contribution table and payment schedule.
The Pag-IBIG Fund offers the End-User Home Financing Program (EUF), a housing loan with interest rates as low as 4.5% per annum and loan terms of up to 30 years, with a maximum loan amount of ₱6 million. The Pag-IBIG Affordable Housing Program (AHP) allows members to purchase residential lots, houses and condominium units at monthly payments of as low as ₱1,897, with a maximum loan amount of ₱750,000.
Pag-IBIG also provides short-term loans such as the calamity loan and the multi-purpose loan for minor home improvements, small business capital, educational expenses, payment of utility bills and other personal purposes.
Aside from loans, Pag-IBIG also has a provident saving program where members can withdraw their accumulated savings after 20 years and 240 monthly contributions, or at a mandatory retirement age of 65. Pag-IBIG members can also withdraw their accumulated savings should they decide to leave the country for good, or if they suffer from sickness, disability or death.
As you can see, being a member of Pag-IBIG allows you to avail of housing loans and assistance, making your dream of owning a house a reality. But to ensure that you are eligible for Pag-IBIG benefits, you need to pay at least 24 monthly savings or contributions.
Employers are mandated by law to pay their employees’ Pag-IBIG contributions, and this is usually done automatically during payroll. You can check if your employer is paying your monthly contributions correctly by referring to the Pag-IBIG contribution table below.
Pag-IBIG Contribution Table for 2020
|Monthly Compensation||Employee Share||Employer Share|
|₱1,500 and below||1%||2%|
As the Pag-IBIG contribution table shows, the employee share is pegged at 1% if his monthly compensation is ₱1,500 and below, and 2% if monthly compensation is more than ₱1,500. The employer share is set at 2% regardless of the employee’s monthly compensation.
Take note that the maximum monthly compensation used for computing employee contributions is ₱5,000, which means that the maximum employee and employer contributions are both ₱100.
To compute your Pag-IBIG monthly contribution, follow this formula: monthly compensation amount x employee or employer share.
For example, if you’re earning ₱4,000 per month, your Pag-IBIG monthly contribution is ₱80 (4,000 x 0.02 = 80), with your employer also paying ₱80.
If you’re earning ₱10,000 per month, for example, your Pag-IBIG monthly contribution is ₱100, which is the maximum currently allowed. Your employer’s share is ₱100.
What if you’re a self-employed or voluntary member? Since you don’t have an employer in that case, you will have to shoulder both the employee share and the employer share. So your maximum monthly contribution as a self-employed or voluntary member is ₱200.
Overseas Filipino workers (OFWs) whose employers are not subject to mandatory coverage should contribute an amount equivalent to 2% of their monthly income, in accordance with HDMF Circular No. 391. The OFW may opt to pay the employer counterpart of 2%. The maximum monthly compensation used to compute the membership savings is also ₱5,000.
Pag-IBIG Payment Schedule
Employers are required to remit the monthly employer and employee contributions to the nearest Pag-IBIG branch or at an authorized collecting bank, together with the duly accomplished Membership Contribution Remittance Form (MCRF). The Pag-IBIG payment schedule for employers and employees is as follows:
|First Letter of Employer or Business Name||Due Date|
|A to D||10th to 14th day of the month|
|E to L||15th to 19th day of the month|
|M to Q||20th to 24th day of the month|
|R to Z, 0 to 9||25th to last day of the month|
Late payments are subject to a penalty equivalent to 1/10 of 1% per day of the delay of the amount due, starting on the first day immediately after the due date.
Self-employed and voluntary members can opt to pay their contributions monthly or quarterly. Self-employed and voluntary members should remit their contributions on or before the 10th day of the month following the period covered. For example, the payment deadline for the month of July is August 10.
If you opt to pay quarterly, you have to remit your contribution on the 10th day of the month of the first month of the quarter. For instance, if you pay for the period of April to June, the due date is April 10.
We hope that you find the Pag-IBIG contribution table and payment schedule useful. If you have any questions or concerns about your HDMF or Pag-IBIG membership, contact the Pag-IBIG Fund through the 24/7 hotline number (02) 724-4244 or send an email to [email protected].