Pag-IBIG Contribution Table 2025: How to Compute for Your Employees

June 25, 2025

Businesses are legally required to remit Pag-IBIG contributions on behalf of their employees. To avoid penalties, these must be paid accurately and on time, following the latest regulations. Implemented in 2024 and still in effect for 2025, updated guidelines have changed how much both employers and employees are required to contribute to the fund. To help you understand this change, we’ll guide you through the 2025 Pag-IBIG Contribution Table, how to compute contributions, and how to properly pay them.

What is a Pag-IBIG Contribution?

Pag-IBIG (Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industria at Gobyerno) is the Philippine government’s national savings and housing finance program. Employees, employers, self-employed individuals, OFWs, and even non-working spouses contribute monthly. When qualified, these funds accumulate, earn dividends, and can be accessed through housing loans, multipurpose loans, or lump-sum withdrawals.

Contributions are mandatory for members under the Republic Act 9679, with different rates based on income and employment type

What’s New in 2025

Effective February 2024 (but still current as of 2025), Pag-IBIG issued Circular No. 460, doubling the maximum Monthly Fund Salary (MFS) used for contribution calculations—from ₱5,000 to ₱10,000. This means:

For total monthly salaries above ₱10,000, both employee and employer pay 2%, capped at ₱200 each month.
This adjustment increases the savings ceiling and supports higher dividend potential.
Regular savings dividend rate rose from 6.05% in 2023 to 6.60% in 2024; MP2 returns also increased from 7.05% to 7.10%.

Pag-IBIG Contribution Table 2025 for Employees & Employers

Here’s a breakdown of contribution rates across member types:

Employees & Employers (Wage Earners)

Monthly Salary	Employee Rate	Employer Rate	Total
₱1,500 and below	1%	2%	3%
Over ₱1,500 – ₱10,000 (MFS cap)	2%	2%	4%

Both parties contribute based on actual salary up to ₱10,000.
If salary exceeds ₱10,000, max contribution caps at ₱200 each, i.e., total ₱400 monthly.

How to Compute Contributions

You can check how much a Pag-IIBIG contribution is using this step-by-step guide for employers and employees:

Identify the monthly salary.
Determine the percentage based on the bracket.
Apply rate to salary or capped MFS of ₱10,000.
Compute employee and employer shares; sum both.

Example 1 – Employee receives ₱8,000 monthly salary:

Employee: ₱8,000 × 2% = ₱160
Employer: ₱8,000 × 2% = ₱160
Total: ₱320

Example 2 – Employee receives ₱15,000 monthly salary:

Contribution based on MFS cap ₱10,000:
Employee: ₱10,000 × 2% = ₱200
Employer: ₱10,000 × 2% = ₱200
Total: ₱400

How to Pay Contributions

Contributions are due on or before the 10th day of the following month. Ensure your business is properly registered with Pag-IBIG before proceeding with the following:

Prepare the Payroll and Contribution Report

Calculate the employee and employer shares (usually 2% each of the gross monthly salary, up to the ₱10,000 cap).

Generate the Payment Instruction

Log in to your Pag-IBIG employer account.
Use the Virtual Pag-IBIG for Employers to generate your payment instruction.
You’ll get a Payment Reference Number (PRN) or Statement of Account (SOA) needed for the transaction.

Choose a Payment Method

You can pay contributions through several official channels:

Online:

Virtual Pag-IBIG (via LANDBANK Link.Biz, PayMaya, or credit card)
GCash – use the Pag-IBIG category and PRN to pay
Bank portals (for accredited employer accounts)
Pag-IBIG Fund branches

Accredited collecting partners, such as:

Bayad Center
Select Business Centers (check if they are accredited)
Selected bank partners (check if they are accredited)

Submit Proof of Payment

Upload your official receipt (OR) or proof of payment through:

Pag-IBIG’s Employer Portal
Or manually submit to your assigned Pag-IBIG branch

Update Your Records

Ensure your company records and employee payslips reflect the contribution.
Keep proof of payment for audit and compliance purposes.

Employers file combined returns for employee and employer shares. Be careful because late payments and mistakes can incur penalties and interest.

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Summary

Businesses must stay up to date with the latest Pag-IBIG guidelines to ensure proper remittance of contributions. Under the 2025 update, Pag-IBIG has increased the Maximum Fund Salary (MFS) cap to ₱10,000, boosting members’ savings and future borrowing capacity. Employers and employees continue to share the cost equally, each contributing 2% of the fund salary, up to a monthly cap of ₱200. Correctly compute your employees’ contributions, remit them on time, and keep accurate records of payroll-related documents.

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