Steps on How to Compute HDMF/Pag-IBIG Monthly Contribution

Steps on How to Compute HDMF/Pag-IBIG Monthly Contribution

Being a Philippine employer there are chances that you are well-versed with the mandate benefits of being an employee that are high or noticeably necessary. For those starters, you may be familiar with the basics; The Social Security System contribution (SSS), PhilHealth contribution, and Home Developmental Mutual Fund (HDMF)/ Pag-IBIG contribution. These benefits are deducted from your monthly salary and being aware of the exact to accurate deductions on your salary is a big deal because this will be taken off of your wage in the monthly basis.  


What is Pag-IBIG?

Being an employee, you should be aware what Pag-IBIG was for. It is a Philippine government operated and owned corporation that corresponds to the need of housing programs, loans, and affordable shelter for the normal working Filipino.

Now, there are more than 14 million members and its sole purpose is to provide a national savings program for Filipino employees. Its goal is to help Filipinos save money for future planning of their dream houses and homes. The fund also offers its members short-term loans and access to housing programs.

Why it is important that I know how much is being deducted?

Knowing how much the deductions on your payslip is a big thing simply because it is your payslip and it is the reason why you work. Also, being able to know how much is being deducted can be a great factor in maintaining a balanced and well-managed salary. In cases where you know to yourself that you haven’t talked to the finance sector of the company and you see that your monthly contributions with Pag-IBIG is not in par, it is just right to talk to them. Clarify things out so that you can find a resolution to it immediately.

This is the table of contributions for HDMF/Pag-IBIG

Pag-IBIG Contribution Table


(Basic + COLA) Employer Employee Total

P 1,500.00 and Below   1%          2%       3%

Over P 1,500.00    2%           2%        4%

As you can see, if your basic monthly salary is Php12, 000.00, your HDMF contribution is calculated as: Php11, 000.00 x 0.02. The employer’s part is also calculated like that and if we are to compute that, the result would be Php220.00 for you (the employee), and Php220.00 for the employer. It’s basic, right? Once you know your monthly compensation, it will be easy for you to deduce how much you contribute to the HDMF Fund.

In case you have future plan in getting a house in the next few years, you may ask your finance or human resources officers to adjust your HDMF monthly contribution because the bigger the contribution you have, the bigger and better the loan you will be getting once you file for one.


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