The Pag-IBIG contribution table for mandatory monthly savings is a two-rate schedule plus a salary cap. Under HDMF Circular No. 460, the Maximum Fund Salary is ₱10,000, effective February 2024. Employee and employer percentages apply to fund salary up to that cap. They do not keep rising with a ₱30,000 or ₱50,000 monthly rate.
Last reviewed: September 2026. Circular 460 was still the schedule used for these figures. Read the current materials on the Pag-IBIG Fund website and the text of Circular 460 before you lock a payroll table.
TimeBoxHR is designed to support configurable Pag-IBIG contribution tables so statutory payroll computation can follow the rates and Maximum Fund Salary the company has verified.
The arithmetic is in how to compute Pag-IBIG contribution. SSS and PhilHealth are different bases and different percentages. The three-agency close is in how to compute SSS, PhilHealth, and Pag-IBIG.
What Circular 460 changed, and what it did not
Circular 460 increased the Maximum Fund Salary from ₱5,000 to ₱10,000 effective February 2024. That is why older worksheets that still cap employee savings at ₱100 are usually leftover from the previous MFS.
The contribution rates in the circular remain a two-row table:
| Monthly compensation (fund salary) | Employee rate | Employer rate |
|---|---|---|
| ₱1,500 and below | 1% | 2% |
| Over ₱1,500 | 2% | 2% |
The contribution base is then capped at the Maximum Fund Salary of ₱10,000.
What did not change is the idea that Pag-IBIG monthly savings are a percentage of fund salary, not a copy of the SSS MSC grid and not a copy of the PhilHealth 5% premium.
Employers remit 2% of the monthly fund salary (after the cap) as counterpart. The employer is not entitled to deduct that counterpart from wages.
Maximum Fund Salary of ₱10,000
Maximum Fund Salary is the ceiling on the base, not a second percentage.
- Fund salary ₱8,000 → base ₱8,000
- Fund salary ₱10,000 → base ₱10,000
- Fund salary ₱15,000 → base ₱10,000
- Fund salary ₱30,000 → base ₱10,000
At a ₱10,000 base and 2% each, mandatory savings are ₱200 employee and ₱200 employer, combined ₱400. That is the maximum mandatory pair under this circular.
A ₱50,000 salary does not produce 2% of ₱50,000. If a spreadsheet shows ₱1,000 employee Pag-IBIG on that salary, someone removed the cap or stored a voluntary amount as if it were mandatory.
The ₱1,500 rate step
The 1% employee rate applies only when monthly compensation is ₱1,500 and below. Over ₱1,500, the employee rate is 2%. The employer rate is 2% in both rows.
That step matters for the lowest-paid rows and is irrelevant for most monthly-paid office salaries, which are already over ₱1,500 and then hit the ₱10,000 cap.
Examples without the MFS cap coming into play:
| Fund salary | Employee | Employer | Combined |
|---|---|---|---|
| ₱1,200 | ₱12 | ₱24 | ₱36 |
| ₱1,500 | ₱15 | ₱30 | ₱45 |
| ₱8,000 | ₱160 | ₱160 | ₱320 |
At ₱1,501 the employee rate is already 2%. Do not keep 1% because the salary is “still near ₱1,500.”
Mandatory versus voluntary amounts
Members may contribute more than the mandatory savings. That option is not an employer license to treat ₱300 or ₱500 as the statutory employee share for everyone.
Keep three ideas separate on the register:
- Mandatory employee savings from the circular
- Mandatory employer counterpart from the circular
- Any voluntary employee amount the member authorized
If a voluntary amount is collected, document the authorization. Do not hide it inside the mandatory column. Do not tell a new hire that ₱400 employee savings is required when the circular’s maximum mandatory employee amount is ₱200.
Employer counterpart remains employer-funded even when the employee saves more. Do not recover the employer 2% from the employee.
Fund salary is not automatically PhilHealth MBS
Pag-IBIG fund salary follows the current HDMF definition of monthly compensation used for membership savings. Circular 460 describes fund salary in broad compensation language. That is not the same instruction as PhilHealth’s Monthly Basic Salary, which excludes overtime, allowances, 13th month, and several absence-related deductions.
SSS uses Monthly Salary Credit after a compensation-to-MSC map, with its own floor and ceiling.
Practical control: store or derive a Pag-IBIG base, a PhilHealth MBS, and an SSS compensation figure. If you force one number into all three, at least one remittance will be hard to defend.
When the circular’s definition is unclear for an allowance you pay, do not guess from a competitor blog. Read the circular and, if needed, ask Pag-IBIG or a qualified professional.
How to use the table at cutoff
Pag-IBIG mandatory savings are monthly. Semi-monthly payroll still has one monthly pair of shares.
- Determine fund salary for the month under the current circular.
- Apply the ₱10,000 Maximum Fund Salary cap.
- Choose the 1% or 2% employee rate using the ₱1,500 step on the uncapped compensation test the circular requires, then apply percentages to the capped base as the issuance instructs.
- Compute employer 2% on the same capped base.
- Add any documented voluntary employee amount separately.
- Post employee amounts to deductions and employer counterpart to employer cost.
- Remit through the process Pag-IBIG currently publishes.
On ordinary salaries above ₱10,000, step 2 and the 2% / 2% rates are the whole computation: ₱200 and ₱200.
The ₱1,500 test is rarely the hard part. The hard parts are using a ₱5,000 cap from memory, treating voluntary savings as mandatory, and deducting the employer share from wages.
New hires and separations need a documented fund salary for the month they are covered. Do not skip Pag-IBIG because the employee is “not yet a housing loan candidate.” Mandatory coverage is not the loan program.
Common Pag-IBIG table errors
- Capping the base at ₱5,000 after February 2024
- Computing 2% of full ₱30,000 salary with no MFS cap
- Using the 1% employee rate on salaries over ₱1,500
- Deducting the employer 2% from the employee
- Encoding a voluntary ₱500 as the company-wide mandatory amount
- Sharing one contribution salary with PhilHealth MBS
- Withholding a full ₱200 on both semi-monthly paydays
- Merging Pag-IBIG loan amortizations into the contribution column
Pag-IBIG loans, calamity loans, and housing amortizations are separate deductions. The contribution table does not compute them.
Records and remittance
Keep fund salary, capped base, employee rate, employee mandatory amount, employer amount, any voluntary amount, the payday, and the remittance reference.
When Pag-IBIG replaces Circular 460, date the new table from the period it applies. Do not rewrite closed months unless the Fund requires a stated correction.
Remittance calendars are published by Pag-IBIG and can change. A correct ₱200 / ₱200 computation remitted on the wrong schedule is still a problem. Use pagibigfund.gov.ph for current payment instructions.
Pag-IBIG sits beside SSS and PhilHealth in Philippine payroll deductions and in how to compute payroll in the Philippines. A payroll system for the Philippines should apply a verified Pag-IBIG table, not a remembered ₱100 cap.
Explaining the ₱200 ceiling to employees
On a ₱30,000 salary, Pag-IBIG is the smallest of the three statutory employee lines, and that surprises people who expect every contribution to scale with pay. The explanation is the Maximum Fund Salary: mandatory savings stop increasing at a ₱10,000 base.
If an employee asks why a coworker on ₱15,000 has the same ₱200 deduction, the answer is the cap, not a payroll error. If a coworker shows ₱400 employee Pag-IBIG, ask whether that line includes a voluntary amount or a loan. Those are not the Circular 460 mandatory savings.
When you collect voluntary savings, show them as a separate payslip label. Mixing ₱200 mandatory and ₱200 voluntary into one “Pag-IBIG” line makes the next audit look like a doubled statutory deduction.
Employers who still describe Pag-IBIG as “₱100 each” are describing the previous Maximum Fund Salary. Update employee handouts when you update the table. A stale FAQ on the intranet will outlive the circular that replaced it.
Last reviewed: September 2026. If Pag-IBIG issues a new Maximum Fund Salary or new rates, those figures replace the ₱200 / ₱200 ceiling used here. Until a replacement circular is in force, do not treat a higher employee amount as mandatory unless that same member authorized a voluntary extra savings amount in writing first.
Simplify Pag-IBIG table maintenance with TimeBoxHR
TimeBoxHR is designed to support configurable Pag-IBIG contribution tables and statutory payroll computation using those tables, together with employee records, DTR, configurable payroll rules, and SSS, PhilHealth, Pag-IBIG, and BIR reports. Voluntary amounts, if you collect them, should remain a configuration you can distinguish from the mandatory ₱200 ceiling.
How TimeBoxHR Handles This
TimeBoxHR is designed to support configurable Pag-IBIG contribution tables so the 1% / 2% step, the employer 2%, and the ₱10,000 Maximum Fund Salary can be applied in statutory payroll computation after you verify Circular 460 or its successor. Employee records hold membership identifiers. DTR and configurable payroll rules support the earnings that feed compensation. SSS, PhilHealth, Pag-IBIG, and BIR reports can be produced from the posted run.
Confirm the current schedule on the Pag-IBIG Fund website before you activate a table.