R.A.

9679 Implementing Rules and Regulations

Home Development Mutual Fund (HDMF) otherwise known as Pag-IBIG Fund

RULE VI
CONTRIBUTIONS
Section 1. Rate of Contributions
Covered employees and employers shall contribute to the HDMF based on the monthly
compensation of covered employees:
a) Employees earning not more than One Thousand Five Hundred Pesos (Php
1,500.00) per month: ONE PERCENT (1%)
[That is, Php 1,501.00 above]
Example: Php 1,500.00 x 0.01 (1%) = 15.00
Php 1,000 x 0.01(1%) = 10.00
b) Employees earning more than One Thousand Five Hundred Pesos (Php 1,500.00)
per month: TWO PERCENT (2%)
[That is, Php 1,501.00 above]
Example: Php 2,000 x 0.02 (2%) = 40.00
Php 4,000 x 0.02 (2%) = 80.00
c) ALL EMPLOYERS: TWO PERCENT (2%) of the monthly compensation of ALL
COVERED EMPLOYEES
[That is, 2% shall be applied for employees mentioned in Section 1 (a) and (b)]
Example:
Section 1 (a)
Employee: Php 1,500.00 x 0.01 (1%) = Php 15.00
Employer: Php 1,500.00 x 0.02 (2%) = Php 30.00
Section 1 (b)
Employee: Php 4,000.00 x 0.02 (2%) = Php 80.00
Employer: Php 4,000.00 x 0.02 (2%) = Php 80.00

However, the maximum monthly compensation to be used in computing employee and

employer contributions shall not be more than Five Thousand Pesos (Php 5,000.00)
Anna Leah D. Dipatuan
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PROVIDED, that this maximum and the contribution rates may be fixed from time to
time by the HDMF Board through rules and regulations adopted by it, taking into
consideration actuarial calculations and rates of benefits;

Example: Monthly Compensation: Php 20,000.00

Contribution based on Maximum monthly compensation rate: 5,000.00 x 0.02
(2%)
Php 100.00 each from employee and employer

PROVIDED FURTHER, that the foregoing rates shall likewise be the same for the
self-employed and voluntary members.

A member may be allowed to contribute more than what is required should he or she
desires.
BUT the employer shall only be mandated to contribute what is required under
these Rules unless the employer agrees to match the members increased
contribution.

Notwithstanding any contract to the contrary, an employer shall not deduct, directly or
indirectly, from the compensation of its employees covered by the HDMF, or otherwise
recover from them, the employers contribution with respect to such employees.

Section 2. Full-Time Spouses

Full-time spouses who volunteer to be covered by the HDMF as provided for under these
Rules, shall adopt as a basis of monthly contributions ONE HALF (1/2) of the MONTHLY
INCOME OF THE EMPLOYED SPOUSE.
Example:
a) Monthly compensation of employed spouse: Php 20,000.00
Basis of Contribution of Full-time spouse: one half ( ) of Php 20,000.00 = Php 10,000.00
Actual Contribution based on Section 1 (b) and Maximum monthly compensation rate:
5,000.00 x 2% = Php 100.00
b) Monthly compensation of employed spouse: Php 3,000.00
Basis of Contribution of Full-time spouse: one half ( ) of Php 3,000.00 = Php 1,500.00
Actual Contribution based on Section 1 (a): 1,500.00 x 1% = Php 15.00
NOTE: The full-time spouse shall not be required to pay the employers contribution.
Section 3. Contributions of Members with Multiple Employers
Such member shall contribute monthly to the HDMF a percentage of his/her monthly
compensation per employer, which shall be matched by the employer in accordance with
Section 1 of Rule VI.

Anna Leah D. Dipatuan

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