How to compute Pag-IBIG contribution for mandatory monthly savings is a cap-and-percentage problem. You state fund salary, cut it at the Maximum Fund Salary of ₱10,000, apply 1% or 2% for the employee and 2% for the employer, and you stop. You do not keep multiplying 2% through a ₱30,000 basic rate.
Last reviewed: September 2026. The figures follow HDMF Circular No. 460, which set the ₱10,000 Maximum Fund Salary effective February 2024 and was still the schedule used at that review. Confirm the current text on the Pag-IBIG Fund website.
TimeBoxHR is designed to support configurable Pag-IBIG contribution tables so this sequence can run from rates and a cap the company has verified.
The rate rows and the cap are summarized in the Pag-IBIG contribution table. Examples below use ₱1,200, ₱8,000, ₱15,000, ₱30,000, and ₱50,000. For the other two agencies, see how to compute SSS, PhilHealth, and Pag-IBIG.
Computation steps
Use this order.
- Determine monthly fund salary under the current Pag-IBIG issuance.
- Cap the contribution base at the Maximum Fund Salary of ₱10,000.
- Apply the employee rate: 1% if monthly compensation is ₱1,500 and below, 2% if it is over ₱1,500.
- Apply the employer rate of 2% on the same capped base.
- Confirm the employer amount is not taken from wages.
- Add a voluntary employee amount only if the member authorized it, on a separate line.
- Post the employee deduction and the employer counterpart.
On any salary at or above ₱10,000 with the 2% / 2% rates, the mandatory result is ₱200 and ₱200. Most of the examples below exist to show that the cap, not the headline salary, is doing the work.
Step 1: fund salary
Fund salary is the monthly compensation Pag-IBIG uses for membership savings. Circular 460 describes it in broad compensation language. That is not automatically PhilHealth Monthly Basic Salary, and it is not SSS Monthly Salary Credit.
Do not start from net pay. Do not start from a “statutory salary” that was built for SSS brackets.
If an allowance’s treatment is unclear, read the circular rather than copying another company’s base. Wrong inclusions at this step become a wrong ₱200 that looks official because it matches the ceiling by coincidence—or a wrong ₱160 that should have been ₱200.
Part-month service still needs a documented fund salary. Do not skip the contribution because the employee worked two weeks unless the current issuance says coverage or the base changes.
Close earnings that affect the Pag-IBIG base before you compute. A moving attendance file can change compensation, and compensation can change whether you are under the cap.
Step 2: apply the ₱10,000 Maximum Fund Salary
Compare fund salary with ₱10,000.
- If fund salary is ₱10,000 or less, the contribution base is fund salary.
- If fund salary is more than ₱10,000, the contribution base is ₱10,000.
This cap is why ₱15,000, ₱30,000, and ₱50,000 produce the same mandatory Pag-IBIG pair.
Worksheets still using a ₱5,000 cap are applying a pre–February 2024 ceiling. That understates both shares by half on any salary that would otherwise sit at the current MFS.
Step 3: employee rate
Look at monthly compensation relative to ₱1,500, then apply the rate to the capped base.
- ₱1,500 and below: employee 1%
- Over ₱1,500: employee 2%
For ordinary monthly salaries, the rate is 2% and the only remaining question is the cap.
- ₱1,200 → 1% × ₱1,200 = ₱12
- ₱8,000 → 2% × ₱8,000 = ₱160
- ₱10,000 or more → 2% × ₱10,000 = ₱200
Do not apply 1% to a ₱8,000 salary. Do not apply 2% to ₱30,000 without the cap.
Step 4: employer rate
Employer counterpart is 2% of the same capped base.
- ₱1,200 → ₱24
- ₱8,000 → ₱160
- ₱10,000 or more → ₱200
The employer rate is 2% even on the ₱1,500-and-below row. It is not 1%.
Do not deduct this amount from the employee. Circular 460 states that the employer is not entitled to recover the counterpart from wages.
Step 5: voluntary amounts stay optional
After the mandatory pair is known, a member may save more. That extra amount is not produced by the 1% / 2% table.
If payroll collects ₱500 employee Pag-IBIG on a ₱30,000 salary, ₱200 is the mandatory share under this circular and ₱300 needs an authorization story. If there is no authorization, the extra is not a statutory requirement.
Do not raise the employer counterpart just because the employee saved more, unless a current issuance or a documented company policy that you can source says the employer matches voluntary savings. Circular 460’s mandatory employer figure at the MFS is ₱200.
Example: ₱1,200 monthly
- Fund salary: ₱1,200
- Capped base: ₱1,200
- Employee rate: 1%
- Employee share: ₱12
- Employer share: ₱24
- Combined mandatory: ₱36
This is the row people forget exists. It is also the row where charging the employee ₱24 “to make it even” is wrong.
Example: ₱8,000 monthly
- Fund salary: ₱8,000
- Capped base: ₱8,000
- Employee rate: 2%
- Employee share: ₱160
- Employer share: ₱160
- Combined mandatory: ₱320
No MFS cap yet. The error at this level is usually using ₱100 / ₱100 from the old ₱5,000 ceiling.
Example: ₱15,000 monthly
- Fund salary: ₱15,000
- Capped base: ₱10,000
- Employee share: ₱200
- Employer share: ₱200
- Combined mandatory: ₱400
The extra ₱5,000 of fund salary does not increase mandatory savings.
Example: ₱30,000 monthly
- Fund salary: ₱30,000
- Capped base: ₱10,000
- Employee share: ₱200
- Employer share: ₱200
- Combined mandatory: ₱400
This is the Pag-IBIG line in the combined ₱30,000 example. SSS and PhilHealth on the same salary are much larger. Pag-IBIG has already hit its statutory ceiling.
Example: ₱50,000 monthly
- Fund salary: ₱50,000
- Capped base: ₱10,000
- Employee share: ₱200
- Employer share: ₱200
- Combined mandatory: ₱400
Same mandatory pair as ₱15,000 and ₱30,000. If the register shows a higher employee Pag-IBIG here, you are looking at a voluntary amount or a missing cap.
Pay frequency
Pag-IBIG mandatory savings are monthly. Do not withhold ₱200 on the 15th and another ₱200 on the 30th for the same month unless you intended to collect two months or a voluntary extra.
Document whether the employee share is taken on one payday or split so the month totals ₱200 at the cap. Remittance follows current Pag-IBIG payment instructions, which you should read on the official site rather than from last year’s calendar.
What not to mix in
Do not compute SSS here. SSS uses MSC and a 15% Social Security contribution plus EC. See how to compute SSS contribution.
Do not compute PhilHealth here. PhilHealth uses MBS and 5% with a ₱10,000 to ₱100,000 band. See how to compute PhilHealth contribution.
Do not compute BIR withholding here. Taxable compensation and the current BIR table are a later step.
Pag-IBIG loan amortizations are not membership savings. Keep them on their own deduction code.
Records
Keep fund salary, capped base, rates, mandatory employee amount, employer amount, voluntary amount if any, payday, and remittance reference.
When Circular 460 is replaced, date the new cap or rates from the applicable period. Closed months stay on the circular that applied to them unless Pag-IBIG requires a correction.
The wider statutory sequence is in Philippine payroll deductions and how to compute payroll in the Philippines. A payroll system for the Philippines should apply a verified Pag-IBIG table after fund salary is known.
Hand-check before remittance
Recompute a short sample every cutoff, the same way you would check SSS rows.
- One employee at or below ₱1,500: confirm 1% employee and 2% employer.
- One employee between ₱1,501 and ₱9,999.99: confirm 2% of actual fund salary, not ₱200.
- One employee at ₱10,000 or above: confirm ₱200 / ₱200 and nothing more on the mandatory line.
- One employee with a Pag-IBIG loan: confirm the loan is a separate deduction.
If the ₱8,000 example in your file shows ₱100 employee, the Maximum Fund Salary is still set to ₱5,000. If the ₱30,000 example shows ₱600 employee, the cap is missing or a voluntary amount was folded into the mandatory column.
Write the sample beside the remittance batch. When Pag-IBIG questions a period, you need the fund salary and the cap, not only the total pesos sent.
Last reviewed: September 2026. Verify Circular 460 or its successor on pagibigfund.gov.ph before the next run.
Simplify Pag-IBIG computation with TimeBoxHR
TimeBoxHR is designed to support configurable Pag-IBIG contribution tables and statutory payroll computation using those tables. Employee records, DTR, configurable payroll rules, and SSS, PhilHealth, Pag-IBIG, and BIR reports are in the designed scope. The ₱10,000 cap is useful only if the configured table still matches the Fund.
How TimeBoxHR Handles This
TimeBoxHR is designed to support configurable Pag-IBIG contribution tables so the ₱1,500 rate step, the 2% employer counterpart, and the Maximum Fund Salary cap can be applied during statutory payroll computation after you verify them. Employee records store identifiers. DTR and configurable payroll rules support earnings. SSS, PhilHealth, Pag-IBIG, and BIR reports can be produced from the posted payroll.
Open pagibigfund.gov.ph and Circular 460 or its successor before you treat a configured table as current.
