How to Compute for HDMF Contribution

The Housing Development Mutual Fund (HDMF) more commonly known as the PAG-IBIG fund, is a government-owned and controlled corporation with the mandate to provide financing for affordable housing for Filipinos. Just like SSS and PhilHealth, the PAG-IBIG funds require monthly contributions from its members, but unlike the other two, one has the option to have a fixed amount for the monthly contribution, or a pro-rated amount depending on one's salary.

You can configure the type of payment you wish to follow under the Company tab, under Setup, Company, Profile, Government Contributions then HDMF.

HDMF Contribution Option 1: Fixed Deduction of P200 per month

• A fixed amount of P200 per month will be deducted from employees with salaries ranging from minimum wage and above. The total monthly contribution that is debited in your HDMF Contribution is P400 monthly (total of both employee’s and employer’s equal share).

HDMF Contribution Option 2: Follow Pag-IBIG Contribution table

• This computation is just simple. Once you know where your Gross Monthly Salary Range belongs, you simply need to multiply it by the multiplier that corresponds to your monthly basic pay (salary).
• Employees earning less than One thousand five hundred (1500) per month - One Percent (1%)
• Employees earning more than One thousand five hundred (1500) per month - Two percent (2%)
• All employers - two percent (2%) of the monthly compensation of all covered employees
• The maximum monthly compensation shall be used in computing employee and employer contributions shall not be more than Five Thousand (10,000). One hundred (200)  fixed amount for both employer and employee share shall apply for employees earning more than Five Thousand (10,000)

Scenario A:

• For instance, if your Monthly Basic Pay (Salary) is P1,000, then your HDMF Contribution is computed as P1200 X 1% = P12 and your employer's counterpart is P1200 X 2% = P24.The total monthly contribution that debit in your HDMF Contribution is P36 monthly.

Scenario B:

• For instance, if your Monthly Basic Pay (Salary) is P4,000, then your HDMF Contribution is computed as 4000 X 1% = P40 and your employer's counterpart is P1200 X 2% = P24.The total monthly contribution that debit in your HDMF Contribution is P64 monthly.

Scenario C:

• For employees earning 6000, the total monthly contribution that is debited in your HDMF Contribution is P400 monthly (total of both employee’s and employer’s equal share).