If you are an employee of the Philippines, the chances of you being well-versed with the mandate benefits of being an employee are high or noticeably necessary. For starters, you know the drill; The Social Security System contribution (SSS), PhilHealth contribution, and Home Developmental Mutual Fund (HDMF)/Pag-IBIG contribution. All of these are deducted from your monthly salary and being aware of the exact to accurate deductions on your salary is a big deal because this will be taken off of your wage in a monthly basis. In previous articles, we already disclosed the contribution tables of SSS and PhilHealth and in this article, you will be enlightened on the Pag-IBIG contribution table.
What is Pag-IBIG?
If you are an employee who does not actually care about the Pag-IBIG corporation, then you better now because HDMF or commonly referred to as Pag-IBIG, is a Philippine government operated and owned corporation that corresponds to the need of housing programs, loans, and affordable shelter for the normal working Filipino.
It now has more than 14 million members and its sole purpose is to provide a national savings program for Filipino employees. Its goal is to help Filipinos save money for future planning of their dream houses and homes. The fund also offers its members short-term loans and access to housing programs.
Why it is important that I know how much is being deducted?
We are all aware that knowing how much the deductions are on your payslip is a big thing because it is your payslip and it is the reason why you work. Being able to know how much is being deducted can be a great factor in maintaining a balanced and well-managed salary.
If you know to yourself that you haven’t talked to the finance sector of the company and you see that your monthly contributions with Pag-IBIG is not in par, it is just right to talk to them. Straighten things out so that you can find a resolution to it immediately.
This is the table of contributions for HDMF/Pag-IBIG
|Pag-IBIG Contribution Table|
|MONTHLY COMPENSATION||CONTRIBUTION RATE|
|(Basic + COLA)||Employer||Employee||Total|
|P 1,500.00 and Below||1%||2%||3%|
|Over P 1,500.00||2%||2%||4%|
As you can see, if your basic monthly salary is Php12, 000.00, your HDMF contribution is calculated as: Php11, 000.00 x 0.02. The employer’s part is also calculated like that and if we are to compute that, the result would be Php220.00 for you (the employee), and Php220.00 for the employer. It’s basic, right? Once you know your monthly compensation, it will be easy for you to deduce how much you contribute to the HDMF Fund.
If you have plans of getting a house in the next few years, you can ask your finance or human resources officers to adjust your HDMF monthly contribution because the bigger the contribution you have, the bigger and better the loan you will be getting once you file for one.
Now that you know how much you are paying for your monthly contribution, it is just right and preferred to compute it yourself in order to avoid misconception and misunderstanding, and most importantly, corruption and bad habits.
Stay tuned for more helpful and educational articles.