The Home Development Mutual Fund (HDMF) issued Circular No. 460 to publish the Guidelines on the Pag-IBIG Fund’s Implementation of Increase in the Maximum Fund Salary (MFS) Effective February 2024.
The contribution rate of all Pag-IBIG I members both mandatory and voluntary shall be as follows, unless otherwise specified:
Contribution Rate
Fund Salary
P1,500 and below
Over P1,500
Employee
1.0%
1.0%
Employer (if any)
2.0%
2.0%
The maximum fund salary to be used in computing the employee and employer savings has been increased from Five Thousand Pesos (P5,000.00) to Ten Thousand Pesos (P10,000) taking into consideration financial calculations and rates of benefits in accordance with Section 7 of Republic Act No. 9679.
Employers shall remit two percent (2%) of the monthly Fund Salary of the contributing member as counterpart contribution. The employer is not entitled to deduct from the wages or remuneration of or, otherwise, to recover from the employee the employer’s contribution.
This Circular shall cover contributions for the period effective February 2024 onwards and shall take effect after its publication.
