R.A. 9679 Implementing Rules and RegulationsHome Development Mutual Fund (HDMF) otherwise known as Pag-IBIG Fund

RULE VICONTRIBUTIONS

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%) = 15.00Php 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%) = 40.00Php 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 15.00Employer: Php 1,500.00 x 0.02 (2%) = Php 30.00

Section 1 (b)Employee: Php 4,000.00 x 0.02 (2%) = Php 80.00Employer: Php 4,000.00 x 0.02 (2%) = Php 80.00

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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)

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 member’s 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 employer’s 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 20,000.00Basis of Contribution of Full-time spouse: one half ( ½) of Php 20,000.00 = Php 10,000.00Actual 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 3,000.00Basis of Contribution of Full-time spouse: one half ( ½) of Php 3,000.00 = Php 1,500.00Actual 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 employer’s 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.

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