Your Pag-IBIG contribution is 2% of your monthly fund salary, matched by 2% from your employer. But the fund salary is capped at ₱10,000 — so your share tops out at ₱200 and your employer's at ₱200, a combined ₱400 per month. Earn more than ₱10,000 and you still pay just ₱200.
Pag-IBIG — officially the Home Development Mutual Fund (HDMF) — has the simplest contribution of the four mandatory Philippine deductions. The 2026 rate is 2% from you and 2% from your employer, set under HDMF Circular No. 460. The twist that trips people up is the ₱10,000 fund-salary cap: the percentage is never applied to your full pay once you cross ₱10,000, so the mandatory share plateaus at ₱200. This guide shows exactly how the number is built, with worked examples.
Want the whole picture? Your Pag-IBIG deduction is only one line on your payslip — the Take-Home Pay Calculator combines it with SSS, PhilHealth, and tax to show your true net salary.
The rule in one line
Take your monthly fund salary, cap it at ₱10,000, and multiply by 2%. That is your employee share. Your employer pays the same 2% on top. Because ₱10,000 × 2% = ₱200, both shares max out at ₱200 each.
The two rules that change the math
1. The ₱10,000 fund-salary cap
The 2% rate is applied to a fund salary that is capped at ₱10,000, even when you earn far more. Whether your salary is ₱12,000 or ₱80,000, the computation uses ₱10,000, so your mandatory share is ₱200 and your employer's is ₱200. This is why almost every mid- and high-income worker sees exactly ₱200 on their payslip.
2. The low-income 1% rule
If your monthly compensation is ₱1,500 or below, your employee rate drops to 1% instead of 2%. The employer rate stays at 2%. So on a ₱1,500 salary you pay ₱15 while your employer pays ₱30.
Step by step
The method is short — three steps, and most people never leave step 2.
Step 1 — Take your monthly fund salary
Start with your monthly compensation. If it is above ₱10,000, cap it at ₱10,000 for the computation.
Step 2 — Apply your rate
Multiply by 2% (or 1% if you earn ₱1,500 or below). That is your employee share. fund salary × 0.02 = your share.
Step 3 — Add the employer's 2%
Your employer contributes 2% of the same fund salary. Only your share is deducted from your salary; the employer share is paid on top.
Worked examples (2026)
Here is the full arithmetic across the salary range. Notice how the total flattens at ₱400 once the fund salary hits the ₱10,000 cap.
| Monthly salary | Employee | Employer | Total |
|---|---|---|---|
| ₱1,000 | 10 (1%) | 20 (2%) | 30 |
| ₱1,500 | 15 (1%) | 30 (2%) | 45 |
| ₱5,000 | 100 (2%) | 100 (2%) | 200 |
| ₱10,000 | 200 | 200 | 400 |
| ₱15,000 | 200 (capped) | 200 (capped) | 400 |
| ₱25,000 | 200 (capped) | 200 (capped) | 400 |
"Employee" is the amount deducted from your salary. The employer share is paid on top of your pay, not out of it.
Take the ₱25,000 row in detail. Because the fund salary is capped at ₱10,000, the employee share is ₱10,000 × 2% = ₱200, and the employer share is another ₱200. Total remittance is ₱400 per month, but only the ₱200 is deducted from your salary. Your actual ₱25,000 pay does not change the number at all — the cap already kicked in at ₱10,000.
Don't want to do this by hand?
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Open the Pag-IBIG Calculator →How it works by membership type
- Employed (private sector): 2% you / 2% employer, both capped at ₱200. Only your ₱200 is deducted from pay.
- Earning ₱1,500 or below: 1% employee rate, 2% employer rate.
- Self-employed & voluntary members: pay their own 2%, capped at ₱200. Most simply pay the ₱200 flat rate.
- OFWs: pay their own share at 2%, still capped at ₱200, with no employer to match it.
- Kasambahay (household worker): pays 2% capped at ₱200; the employer shoulders their matching 2% share.
Optional: contribute more than ₱200
The ₱200 is only the mandatory minimum. If you want a bigger nest egg, Pag-IBIG lets you voluntarily pay a higher rate on your full salary, or open a separate MP2 Savings account, to earn larger tax-free dividends. These extra contributions are entirely optional — they are not required to keep your membership in good standing, and your mandatory obligation is still just ₱200.