Mandatory Pag-IBIG contribution in 2026 is 2% each from employee and employer on a maximum fund salary of ₱10,000 — so most employees pay ₱200/month, matched by ₱200 from the employer (₱400 total), per HDMF Circular No. 460 effective February 2024. Employees earning ₱1,500 or below contribute only 1% (employer still 2%). Employees may add voluntary savings of up to ₱5,000/month. Remittance is generally due by the 10th–14th of the following month depending on employer category.
What Is Pag-IBIG (HDMF) and Who Must Contribute?
The Home Development Mutual Fund (HDMF), commonly known as Pag-IBIG Fund, is a government housing savings program for Filipino workers. Under RA 9679 (Home Development Mutual Fund Law of 2009), all employees earning at least ₱1,000/month must be covered by Pag-IBIG, with contributions shared between employer and employee.
Pag-IBIG savings fund two things: (1) the employee's housing loan eligibility, and (2) multi-purpose loan access. Both require consistent contribution history — so proper remittance directly affects your employees' ability to access Pag-IBIG benefits.
Pag-IBIG Contribution Rates in 2026
Contribution is based on monthly compensation, with two salary tiers:
| Monthly Compensation | Employee Rate | Employer Rate | Employee Amount (example) | Employer Amount (example) |
|---|---|---|---|---|
| ₱1,500 and below | 1% | 2% | ₱15 (on ₱1,500) | ₱30 (on ₱1,500) |
| Over ₱1,500 | 2% (max ₱200) | 2% (max ₱200) | up to ₱200 | up to ₱200 |
Rates apply to a maximum fund salary of ₱10,000, raised from ₱5,000 by HDMF Circular No. 460 effective February 2024. So for employees earning ₱10,000 or more, the contribution is simply ₱200 employee + ₱200 employer = ₱400/month total. Each share is capped at ₱200 even if 2% of the actual salary would be higher.
Voluntary Contribution: Pag-IBIG Fund II
Employees who want to save more can contribute up to ₱5,000/month voluntarily through Pag-IBIG Fund II. This earns a higher dividend rate than the mandatory savings. To enroll, the employee submits a Pag-IBIG Fund Membership Contribution Remittance Form (MCRF) to the employer, authorizing the additional deduction.
Voluntary contributions improve housing loan eligibility — a higher total accumulated value means a higher loan ceiling. For employees planning to apply for a housing loan, consistent maximum voluntary savings significantly accelerates eligibility.
Pag-IBIG Remittance Deadlines
Deadlines vary by employer type:
| Employer Type | Remittance Deadline |
|---|---|
| Private employers (A–D companies, small-medium) | 10th of the following month |
| Private employers (E–Z companies) | 14th of the following month |
| Government employers | 10th of the following month |
Check your specific deadline in your Pag-IBIG employer registration records.
Penalties for Late or Non-Remittance
- Late penalty: 1/10 of 1% (0.1%) of the unremitted amount per day of delay
- Interest on arrears: Additional assessment may apply during settlement
- Criminal liability: RA 9679 provides for fines and imprisonment for employers who willfully fail to register or remit
How to File: The Pag-IBIG Remittance System
Employers submit contributions through the Virtual Pag-IBIG portal (virtualpagiibig.com.ph). The monthly remittance form lists each employee, their Pag-IBIG MID number, and contribution amounts. Payment can be made via partner banks, over-the-counter at Pag-IBIG branches, or online payment channels.
Payroll software should generate the remittance report directly from each payroll run, eliminating manual encoding errors.
Frequently Asked Questions
An employee needs at least 24 monthly contributions to qualify for a Pag-IBIG housing loan, with at least 5 of those contributions made in the 12 months immediately before the loan application.
Yes — members can claim their total accumulated value (TAV) upon reaching age 65, permanent and total disability, separation from employment due to health reasons, or completion of at least 20 years of membership (with at least 240 monthly contributions).
The MPL is a short-term loan of up to 80% of the employee's total accumulated value (TAV). It requires at least 24 monthly contributions. Repayment is via salary deduction, which the employer must process and remit.
Yes. The employer's share of Pag-IBIG contributions is a deductible business expense for income tax purposes under Philippine tax law.
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