Philippine Payroll 101: PAG-IBIG FUND

The Philippine Payroll Software (Payroll Pro) includes PAG-IBIG FUND as part of the government required deductions in its payroll software. Originally called the Home Development Mutual Fund (HDMF), PAG-IBIG was previously under SSS and GSIS so membership is compulsory.

In May 1986 it was temporarily suspended until August 1 of the same year. From this date until December 31, 1986, compulsory membership was resumed. In January 1, 1987 it was made voluntary until December 31, 1994. Through a Presidential Decree issued in June 1994, mandatory membership was returned effective January 1, 1995 and this continues to take effect to this day.

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In all those years, the primary purpose of PAG-IBIG is and remains to be that of providing a source of housing fund for all its members.

Contributions are computed as follows:

  • For members whose monthly salary is P1,500.00 or below – 1% of the salary
  • For members earning more than P1,500.00 a month – 2% of the salary
  • For employers – 2% of each employee’s monthly salary regardless of amount

The computations above are also incorporated when you purchase Philippine Payroll Software (Payroll Pro).

VISIT the nearest PAG-IBIG office for further inquiries on member contribution options and on how to avail the services or benefits being offered.

Know more about the Philippine Payroll Software, CONTACT US.

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