Pag-IBIG Fund or Home Development Mutual Fund (HDMF) is a Philippine government agency that administers national savings program and affordable shelter financing for Filipino workers.
Here are some of the benefits that you can get if you are a Pag-IBIG member:
In this blog, we will focus on the Regular Savings Program that contains monthly contributions withheld from employees and shared by employers as well.
HOW TO COMPUTE PAG-IBIG CONTRIBUTION?
PAG-IBIG CONTRIBUTION TABLE 2021 (FOR EMPLOYERS AND EMPLOYEES)
*Note: The maximum monthly compensation used for computation of contribution is P5,000. Therefore, if your employee has at least P5,000 salary, you will remit P200 to the agency.
Employee: P5,000 x 2% = P100
Employer: P5,000 x 2% = P100
Total: P200
The P200 will be part of your employee’s savings. Furthermore, even if your salary is P20,000 or increased to a higher amount, the same shall be applied.
On the other hand, for an instance, your employee’s basic monthly salary is P1,500, the contribution will be:
Employee: P1,500 x 1% = P15
Employer: P1,500 x 2% = P30
What if your employee’s monthly salary is P4,000? The computation will be:
Employee: P4,000 x 2% = P80
Employer: P4,000 x 2% = P80
Employees may also opt to contribute an amount higher than the applicable percentage for them as it gives them higher return because of the high annual dividend earnings provided by the agency for their savings. They just need to fill out the Request for Upgrading Savings Form and shall be then submitted to you (employer).
WHEN TO PAY CONTRIBUTION?
As an employer, you will act as an agent for both HDMF and your employees. You are responsible for withholding from your employees’ salary and shall also be required to contribute your counterpart. Contributions can be paid through accredited collecting agents.
Based on HDMF Circular No. 274, employers should meet the deadline of payment for the monthly contribution which will be based on the first letter of business/employer’s name.
You may download this HDMF Flowchartto give you a glimpse of a basic guide on the process of HDMF Contribution.
For more updates, you can check their following accounts:
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