When we talk about the goal of the PAG IBIG is to provide every Filipino with both savings and shelter. It helps its members by returning the members’ monthly contributions + their employers’ contribution in their behalf + any dividend earned by the money after a certain period of time, such as:
-After 20 years since the member started contributing
-At the time of the member’s retirement
-When he is no longer able to work because of injury, illness, or insanity
The table shows the employee’s contribution to PAG-IBIG to be computed as 2% of his salary (or 1% if he is earning Php1,500 or less). The employer will match the said amount and will also contribute to PAG-IBIG for the paying employee.
It is important to note that the maximum compensation considered in computing a member’s monthly PAG-IBIG contribution is Php5,000, which equates to Php100 contribution each for the employee and the employer. This means that even if the monthly compensation of an employee exceeds Php5,000, his contribution will remain at Php100.
Small details like this can make for computing the HDMF employee contribution confusing for employers. Because of this, many of today’s businesses are already investing in payroll software in order to automate their payroll computations. It might be time you do the same for your business.
If you have some questions regarding how pag ibig computation table works, you may write us on the comment section below and provide as some details about your inquiries in the said computation. Thank you and all the best of your pag ibig contribution.
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