Updated 2020 Pag-IBIG Fund Membership

The Pag-IBIG, just like any other government agency, has its own set of contribution calculations and tables. Every year, they may or may not update the contribution table. The modifications come from new laws in taxes and contributions and this year, we will be discussing the latest and the updated 2019 Pag-IBIG fund membership.

This is based on the latest HDMF Circular No. 274 or more commonly known as the Revised Guidelines on Pag-IBIG Fund Membership.

In this article, we will be discussing everything that revolves around the contribution and the revisions in the guidelines and the rules around it.

The Pag-IBIG monthly compensation

The monthly compensation of Pag-IBIG is the basic salary and other allowances involved. Basic salary includes (but is not limited to) salaries, wages, fees, and other similar items that are received in a month.

To put simply, this is the sum of the earnings. However, designated, capable of being expressed in terms of money, whether it is ascertained or fixed on a specific time, piece, commission, or task basis. In addition, it could also be calculated the same way which is payable by a certain employer to a specific employee or by one person to another with an unwritten or a written contract of employment.

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Is there a maximum monthly compensation?

In the updated 2020 Pag-IBIG contribution, the maximum monthly compensation to be used in the computation of both the employer and the employee contributions should not be more than P5,000.00.

The Pag-IBIG membership coverage

Now, let's talk about the coverage of the membership of Pag-IBIG. There are two (2) types of Pag-IBIG membership: the mandatory membership or voluntary membership.

The mandatory membership refers to the employees' membership. Being employed under a specific employer would make you a mandatory member of the Home Developmental Mutual Fund. More so, all employees who are covered by the Social Security System (SSS), provided that their actual membership in the SSS is not under a condition precedent to the mandatory coverage.

Being a voluntary member, on the other hand, is the type of membership that self-employed people or business owners do. Voluntary members are expected to comply with all rules and regulations for Pag-IBIG members which include the amount of contribution and the schedules of the payments.

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Mandatory Coverage

• A private employee, whether it is under temporary, probationary/provisional, or permanent status, who is not over sixty (6) years old.
• A Filipino seafarer upon the appropriate signing of the regular contract of employment between him (seafarer) and the agency, together with the foreign ship owner who acts as the employer.
• House helper/s earning at least P1,000.00 on a monthly basis. A household helper is a person who provides service domestically exclusive to a certain household. E.g: cook, gardener, governess, driver, and other occupations similar.
• A person who is self-employed in whatever industry with an income of at least P1,000.00 monthly and who is not sixty (6) years old.
• Lastly, an expatriate (OFW) who is not more than sixty (60) years old and is covered by the SSS whatever the nationality is and the nature of employment.

To add to that, members of the Government Service Insurance System (GSIS), regardless of the employment status, which also includes members of the constitutional and judiciary commissions.

More so, members and uniformed personnel of the Armed Forces of the Philippines (AFP), the Bureau of Jail Management and Penology (BJMP), the Philippine National Police (PNP), and the Bureau of Fire Protection (BFP).

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Lastly, Filipinos who are employed by foreign employers are also part of this membership or coverage.

Voluntary coverage

• Filipino employees of an international company or organization or a foreign government, or instrumentality, based here in the Philippines in the absence of an agreement with Pag-IBIG.
• Non-working partners or spouses who allot their full time in managing family affairs and the household. In the event that they also engage in employment or a vocation, they will be subject to mandatory coverage already.
• Employees of the company/employer who is given a waiver or a suspension of coverage by the Pag-IBIG under Republic Act (R.A.) 9679:
  • Member/s separated from employment either abroad or local or stopped to be self-employed but would like to continue paying for his or her personal contributions. Members could be either of the following: pensioner or investor or other individuals with passive income.
  • Public employees or officials not covered by the GSIS. These are Barangay Chairmen, Council Members, Sangguniang Kabataan, Barangay Treasuries and Secretaries, and Barangay Officials.
  • Individuals or groups earning governed by the Board which abides by its regulations and rules.
  • Officials, members, and leaders of religious groups.

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How about those who are currently members and who have coverage?

Everything from documents to records and recordings, including the benefits and the amounts accrued to the members of the Fund under PD 1752, shall be transferred, continued, and integrated to each members' coverage under Republic Act (R.A.) 9679.

The OFWs' Pag-IBIG contribution

Last but definitely not the least, an Overseas Filipino Worker (OFW) who is working and currently abroad whose employer is not subject to any mandatory coverage shall continue to contribute an amount equivalent to two (2) percent of the total monthly compensation. Furthermore, the employee can choose to pay for the employer's part of the contribution premium.

Those are the latest modifications in regard to the updated 2019 Pag-IBIG fund membership. If you have inquiries as regards this, you can refer directly to the HDMF website, exactly HDMF Circular No. 274.