Pag-IBIG Contribution Table 2026 for Employers

Before February 2024, Pag-IBIG on most payslips was ₱100. Now it is ₱200. If you still have an old spreadsheet that says ₱100, your deductions are short, and so is your employer share.

The change came from HDMF Circular No. 460, which doubled the maximum Fund Salary from ₱5,000 to ₱10,000 starting February 2024. That circular is still the rule in 2026. This guide explains how it works, with examples you can check against your own payroll.

To check one employee quickly, use the free Pag-IBIG contribution calculator.

The 2026 Pag-IBIG rates

On top of that, one limit applies: the maximum Fund Salary is ₱10,000. Anything above ₱10,000 is treated as ₱10,000.

That means for most staff:

• Employee share: 2% × ₱10,000 = ₱200 a month at most
• Employer share: 2% × ₱10,000 = ₱200 a month at most
• Total: ₱400 a month at most

Before February 2024, the maximum Fund Salary was ₱5,000, so the maximum was ₱100 each. That is why the old ₱100 figure still floats around online.

What counts as Fund Salary

Pag-IBIG uses Fund Salary, not just basic pay. Circular 460 defines it as the basic salary and other allowances. Basic salary includes fees, salaries, wages and similar items received in a month, whether paid by time, task, piece or commission.

So if a staff member earns ₱8,000 basic plus a ₱2,000 monthly allowance, the Fund Salary is ₱10,000, and the contribution is ₱200 each, not ₱160.

This is different from PhilHealth, which uses basic salary only and leaves allowances out. See our PhilHealth contribution table guide for that one.

Because of the ₱10,000 cap, the question of what goes into the base only matters for staff whose pay is under ₱10,000 a month. Anyone above that pays ₱200 either way.

How to compute Pag-IBIG contribution, step by step

1. Add up the monthly Fund Salary: basic salary plus allowances.
2. Apply the cap. If it is above ₱10,000, use ₱10,000.
3. Pick the employee rate. 1% if the Fund Salary is ₱1,500 or below, 2% if it is over ₱1,500.
4. Compute the employer share at 2%, always.

Note that exactly ₱1,500 falls in the 1% tier. The 2% employee rate starts above ₱1,500.

Worked examples at different salaries

As you can see, every employee with a Fund Salary of ₱10,000 or more lands on the same ₱200 and ₱200. The lower rows matter for staff who earn less than that, such as part-timers.

You can try your own numbers in the Pag-IBIG calculator.

The employer share is a business cost

Circular 460 is clear on this: the employer must remit 2% of the monthly Fund Salary as its counterpart, and it cannot deduct that from the employee's wages or recover it from the employee in any other way.

So for a staff member at the cap, your real monthly cost is ₱200 more than their salary, just for Pag-IBIG. Add PhilHealth, SSS and other costs, and it adds up. Our guide on the cost of hiring an employee puts all of these together.

Voluntary higher contributions

Some employees want to save more with Pag-IBIG. The circular allows this: members may contribute more than what is required.

The employer, however, is only required to pay the mandatory 2% (up to ₱200 a month). You do not have to match the extra unless you agree to.

Example: an employee asks to contribute ₱500 a month. You deduct ₱500 from their pay. Your employer share stays at ₱200, unless your company decides to match more.

Splitting Pag-IBIG across semi-monthly cutoffs

Like PhilHealth and SSS, Pag-IBIG amounts are monthly. The circular does not say how to split them across paydays. Common choices:

• Split evenly: ₱100 from the first cutoff and ₱100 from the second.
• Deduct once: the full ₱200 from one cutoff each month.

Both are fine as long as the monthly total is right. Choose one and stay consistent so staff know what to expect. Our guide to payroll cutoffs and pay schedules covers the rest of the setup.

Special cases

Employees over 60. Mandatory coverage under Circular 460 is for private employees not over 60 years old. For staff older than that, check with Pag-IBIG before you keep deducting.

Employees with two employers. Each employer computes Pag-IBIG on the Fund Salary it pays, and each matches the employee's share. So a part-timer working for two businesses has contributions from both.

Kasambahay. If a household worker's monthly Fund Salary is below ₱5,000, the employer pays the whole contribution: 3% if ₱1,500 and below, 4% if over ₱1,500. At ₱5,000 and above, it is the standard 2% from the kasambahay and 2% from the employer.

Common Pag-IBIG mistakes

Still using the old ₱100. The ₱5,000 cap ended in January 2024. From February 2024 onward, the maximum is ₱200 each.

Leaving allowances out of the base. For staff under ₱10,000, regular allowances raise the Fund Salary and the contribution.

Charging the employer share to the employee. The employer's 2% is not a payroll deduction. Only the employee share appears on the payslip.

Computing tax before Pag-IBIG. The employee's Pag-IBIG share is deducted before withholding tax. See our BIR withholding tax guide for the full order, and the SSS contribution table for the other big contribution.

One less number to check

Pag-IBIG is the simplest of the government contributions: for most staff it is ₱200 and ₱200, every month. The tricky part is remembering the 1% tier, the cap, and which allowances count, for every person on payroll.

Timekeep is payroll software built for Philippine small businesses. It computes the standard Pag-IBIG employee and employer shares on every payslip, together with SSS, PhilHealth and withholding tax. Timekeep bases them on basic pay, so if your staff earn regular allowances and are paid under ₱10,000 a month, or if you have a kasambahay or voluntary top-ups, compare the payslip with the rules above before you remit. Read how Timekeep computes government deductions, or try Timekeep free for 30 days with no credit card.