Wanna Know Formula to calculate PAG IBIG CONTRIBUTION? Learn How to Compute PAG IBIG Contribution? Here is an easy method we use.
Philippines employees are well-versed in the authoritative benefits of being loan owners at PAG IBIG. Meanwhile, if you’re a beginner at the loan-delivering platform, you must be aware of accurate deductions of loans from your salary. How our PAG IBIG deals with loan owners is considerable only when you know more about PAG IBIG computation.
Although PAG IBIG is a great source of savings and income for investors, retirees, and even for self-employed as well. The vital feature of PAG organization is offering attractive loan interest of around 7.5% yearly. Now you need to know how to compute your regular savings as well as dividend savings.
The computation of Members’ contributions in PAG IBIG is associated with different aspects. You must know these steps:
CHECK: Pag IBIG Contribution Table 2023
Contents
- 1 How can you compute your PAG IBIG Contribution?
- 2 PAG IBIG Contribution Computation
- 3 How to Compute PAG IBIG Contribution for Penalties?
- 4 Final Thoughts
- 5 Author
How can you compute your PAG IBIG Contribution?
PAG IBIG allows borrowers to compensate their monthly income of about PHP5,000. It represents that you are able to contribute about PHP150 per month.
Suppose, as an employed member, you’re getting over 5,000 monthly. You can transact 150 monthly to acquire the employee share. Likewise, your employer needs to share 150 for your employer share at PAG IBIG.
PAG IBIG Contribution Computation
As PAG IBIGI loan owners, you are eager to learn how much you can get in your monthly savings.
Let’s look at the contribution table that’s organized on account of the member’s current employment (income) status.
PAG Contribution Table for Employers and Employees
| Salary (per month) | Employee’s Contribution | Employer’s Contribution | Total |
| ₱1,000 – ₱1,500 | 1% | 2% | 3% |
| Over ₱1,500 | 2% | 2% | 4% |
Employers (bosses) as employees (workers) contribute to PAG for all employed members. The contributed figure for these two members is quite different. Workers’ contributed amount is deducted from their per month wages. But, employers’ payments won’t deduct from their employee’s salaries.
However, a worker’s monthly salary can be lower than ₱1,500. They contribute 1% according to their usual salary. Meanwhile, employers have to contribute around 2% of their income.
Now you may know how much payment you can pay as an employer or worker. Thus, using the following formula, you are capable of computing your contributions:
PAG IBIG Contributed amount = Basic Salary (monthly) x Employer’s or Worker’s Contribution Rates
Worker’s sample computation with ₱3,000 basic salary plan (monthly):
Well, the worker’s contribution rate is ₱60, which is deducted from his salary. Likewise, the employer needs to submit the ₱60 amount for his entire monthly savings (₱120).
Worker’s sample computation with ₱5,000 basic salary plan (monthly):
Hence, PAG IBIG permits to contribute ₱5,000 monthly. It’s the maximum amount that you can contribute. Your computation formula looks like this:
Your monthly saving is ₱100 (when you earn ₱5,000 – worker’s share) + ₱100 is the Employer’s share = ₱200.
Eventually, your contributed amount doesn’t depend on your monthly wage. It’s because your salary may increase or decrease, but PAG IBIG laws are established and unchangeable. If your salary is increasing in the coming era, you can still add ₱5,000 per month. However, a salary deduction from your wage would be ₱100. Likewise, your business owner (boss) will pay that amount with his counterpart worth ₱100. Hence, the entire monthly saving rates become ₱200 for PAG membership owners.
PAG IBIG Contribution Table for Self–Employed Members
| Monthly Income | Contributed Payment |
| ₱1,000 – ₱1,500 | 1% |
| Over ₱ 1,500 | 2% |
Various freelancers, market vendors, entrepreneurs, TNVS/PUV drivers etc., are interested in contributing to PAG IBIG savings. Though, these self-earning people are allowed to participate greatly in the PAG IBIG. Hence, you’re working as the self-employing one; here, you can calculate your monthly savings:
PAG contribution = Contribution Rate x Monthly Income
PAG IBIG offers higher income sources, around ₱5,000, to compute the self-employing members. This payment is regardless of your salary. So, you need to contribute around ₱100 every month. Fortunately, you’ve got the benefit of more contribution to ₱200 if you’re going to contribute to a housing loan as well.
PAG Contribution Table for OFWs
PAG IBIG contributed payment is usually mandatory for all OFWs. Once you’re contributing as the OFW person, you must encode your MID number with your account. So, our system has cleared your journey to pay your contributions. If you can’t comply with our registered policies, you’re not eligible to contribute to our funding schemes.
For OFW members whose employers are mandatory for PAG IBIG Coverage
| Salary (monthly) | Contribution of OFW’s | Contribution of Foreign Employer | Total |
| Below and ₱1,500 | 1% | 2% | 3% |
| Entire ₱1,500 | 2% | 2% | 4% |
Suppose you’re contributing as an oversea person, and you can compute your charges according to this information. These figures are required for your fascinating contributions.
OFWs computation for ₱5,000 per month Earning:
Your calculation is actually related to PAG monthly payment agreements. So, you may know as
OFW member’s share: ₱5,000 x 0.03 = ₱150
Their foreign partner employer’s share: ₱5,000 x 0.03 = ₱150
Though, you & your employer need to contribute ₱150 individually. Then your entire saving can become about ₱300.
For OFW members whose employers are excused from PAG IBIG Coverage
| Salary (per Month) | Contribution Rates |
| Over ₱1,500 | 2% |
Sometimes, OFWs’ oversea employers are not allowed to upgrade in PAG IBIG. You need to contribute 2% of your monthly contribution. With ₱5,000 payment charges, you can contribute around ₱100 charges. Furthermore, when availing of the housing loan, you can pay your 2% for the entire ₱200 per month savings.
PAG IBIG Contribution Table for Non–Working Members
| 50% working members Salary | Contributions |
| Below and ₱1,500 | 1% |
| Over ₱1,500 | 2% |
While computing, the PAG contributions for an unemployed person depend on half of the employed individual. Such as a full-time housekeeper lady’s husband gets ₱4,000 monthly. He will contribute around ₱40 every month. You may compute it as:
0.02 x (₱4,000 / 2) = ₱40
Unemployed people contribute about 2% of their salary because of 50% of the employed ones. If your salary is ₱2,000, that may fall to more than ₱1,500.
PAG IBIG Contribution Table for Kasambahays
| Salary per month | Contribution Rate for Employer | Contribution Rate for Kasambahay’s | Total |
| < ₱1,500 | 3% | 0% | 3% |
| ₱1,500 – ₱4,999 | 4% | 0% | 4% |
| > ₱5,000 | 3% | 3% | 6% |
Household employers can provide the entire contributions for ₱ 5,000 monthly salary of kasambahays. Here you can contribute 3% as an employer for your worker’s salary (less than₱1,500). Same, you have to undergo 4% if it’s in the range of ₱1,500 – ₱4,999.
Kasambahay Salary’s PAG IBIG computation for ₱3,000
Therefore, for higher earnings as Kasambahays₱5,000 salary, the employees need 2% for the deduction.
Hence, Kasambahays gets more than ₱5,000 from the entire PAG savings of ₱200.
How to Compute PAG IBIG Contribution for Penalties?
If you have missed your due date contributions, then you have to pay your payments with penalties.
So, you must know the computation of your penalty payments. PAG IBIG allows 1% per day (1/10) charges after the due date.
Final Thoughts
PAG IBIG is the major contributor for Philippines citizens who are willing to invest and save profitable earnings. They can withdraw their payments in any emergency. Though, regarding the whole contributions scheme, you must be aware of your entire computation. Fortunately, we’re offering the interest rates of 7.5% per annum. You may calculate your contributions monthly or annually.
