Pag-IBIG contributions on the capped fund salary.
Total monthly Pag-IBIG
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Employee share
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Employer share
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A small deduction that opens a big door
Pag-IBIG, formally the Home Development Mutual Fund, takes one of the smallest bites out of a Filipino payslip, yet it unlocks some of the most useful benefits, low-rate housing loans, short-term multi-purpose loans, and the tax-free MP2 savings program. Because the contribution is capped low, many workers ignore it entirely. That is a mistake. The membership it buys is what makes you eligible for a home loan years later. This calculator shows the exact employee and employer shares for a given salary so you can confirm your payslip is correct and understand why the figure barely moves once you earn past a certain point.
The 1 percent or 2 percent rule, and the ceiling that flattens it
Two design choices shape the whole result. First, the employee rate depends on your fund salary: it is 1 percent if your monthly fund salary is PHP 1,500 or below, and 2 percent above that. The employer always pays 2 percent. Second, and this is the part that surprises people, the fund salary the rates apply to is capped at PHP 10,000 as modelled here. So once your salary reaches PHP 10,000, the 2 percent stops climbing and each side tops out at PHP 200 a month. A worker earning PHP 12,000 and one earning PHP 120,000 pay the identical PHP 200. The calculator applies both the rate test and the cap automatically. These are the figures this tool models, so confirm the current rates and the salary ceiling with Pag-IBIG, since the cap was raised in recent years and may change again.
A PHP 25,000 salary, capped on both sides
Take a monthly compensation of PHP 25,000. That is well past the PHP 10,000 fund-salary ceiling, so the percentages bite on PHP 10,000, not on the full salary. Using the rates this calculator applies, here is the breakdown. Watch how the salary you actually earn drops out of the arithmetic the moment it clears the cap, which is why the same numbers appear for a wide range of office salaries.
| Step | Amount |
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Both sides match at PHP 200 because both are at the cap. The employee and employer bars are equal here, which is the visual signature of any salary above PHP 10,000.
Paying more than the minimum on purpose
The PHP 200 is a floor, not a limit on what you can save with Pag-IBIG. Members are allowed to contribute above the mandatory share, and many do, because every peso of contribution earns the fund's annual dividend and counts toward your total. If you want to put away more, the better-known route is opening an MP2 account separately rather than padding the mandatory contribution, since MP2 has its own five-year term and tax-free dividend. A practical tip for the self-employed and overseas members: you fund both the employee and employer portions yourself, so your monthly outlay is the full PHP 400 in this example, not PHP 200. Keep your payment record clean, because loan eligibility looks at consecutive monthly contributions. A useful habit is to set a calendar reminder a few days before each deadline, since a single missed month can reset the run of consecutive payments that some loan products require.
Why is my Pag-IBIG the same as a higher-paid colleague's?
Because of the fund-salary cap. Once monthly fund salary reaches PHP 10,000, the 2 percent rate applies only to that PHP 10,000, so everyone above the ceiling pays the same PHP 200 employee share. Your colleague on a far larger salary contributes the identical amount. The cap is the reason the mandatory figure feels flat across most office salaries.
Does the employer share come out of my salary?
No. The employer's 2 percent is paid by the company on top of your wage, not deducted from it. Only the employee share, PHP 200 at the cap, comes off your pay. The total of PHP 400 shown here is the combined amount credited to your Pag-IBIG record, which matters for your dividend and loan entitlement, but only half of it is your own payslip deduction. Confirm the split on your records with Pag-IBIG if anything looks off.