If you’re a Filipino worker, employer, freelancer, or even an OFW, you’ve probably heard of Pag-IBIG. It’s one of the most important savings and loan programs in the country. But many people still get confused when it comes to figuring out how much to contribute each month. In this blog post, we’ll help you understand how to compute your Pag-IBIG contribution 2023, explain the latest guidelines, and walk you through real-life examples step by step.
This simple guide is based on accurate information and is written in plain, human-friendly language so you can easily follow along.
Before we dive into the numbers, let’s review what Pag-IBIG is all about.
Pag-IBIG stands for Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industria, at Gobyerno. It is officially called the Home Development Mutual Fund (HDMF). The purpose of Pag-IBIG is to help Filipinos:
Build savings through regular contributions
Get access to affordable housing loans
Avail of short-term loans like calamity and multi-purpose loans
Earn dividends from savings
To receive these benefits, members must make regular contributions.
It’s important to know how your Pag-IBIG contributions work so you can:
Pay the correct amount
Avoid missing payments
Plan your monthly budget
Maximize your loan and savings potential
In Pag-IBIG contribution 2023, contribution rates are guided by the latest updated table that applies to employed, self-employed, and voluntary members. Let’s take a deeper look at this.
As of 2023, Pag-IBIG uses the following rules to compute monthly contributions:
| ₱1,500 and below | 1% of monthly income | 2% of monthly income | 3% of salary |
| Above ₱1,500 (up to ₱5,000) | 2% of monthly income | 2% of monthly income | 4% of salary |
| More than ₱5,000 | ₱100 (fixed) | ₱100 (fixed) | ₱200 (fixed) |
There is a maximum monthly compensation cap of ₱5,000. This means even if you earn more than ₱5,000, your contribution is only based on ₱5,000.
Pag-IBIG membership and contributions apply to many groups:
Mandatory for:
Private and government employees
Household workers (kasambahays)
Self-employed individuals earning ₱1,000 or more
Overseas Filipino Workers (OFWs)
Voluntary for:
Students
Non-working spouses
Freelancers and informal sector workers (drivers, vendors, etc.)
Let’s go through the simple steps you can follow:
This is the total of your basic salary, cost-of-living allowance (COLA), and other regular earnings. Don’t include bonuses or irregular overtime.
Apply the contribution rate based on your salary bracket:
₱1,500 or less: Use 1% for the employee and 2% for the employer
Above ₱1,500 up to ₱5,000: Use 2% for both employee and employer
Above ₱5,000: Fixed amount of ₱100 from both sides
Here are several examples to show how easy it is:
