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HDMF Contribution Table

As we usher in the new year, significant changes are on the horizon for members of the Home Development Mutual Fund (HDMF) or Pag-IBIG. The eagerly awaited Circular 460 has been released, outlining the guidelines for the Pag-IBIG Fund's 2024 contribution rate increase. In this article, we will dissect the key details, shedding light on the adjustments that will shape the financial landscape for mandatory and voluntary members alike.

Understanding the Changes

1. Background and Effective Date: As 2023 drew to a close, whispers of an impending increase in Pag-IBIG rates circulated. On January 16, 2024, Circular 460 was officially unveiled, providing the roadmap for the implementation of these changes. The revised contribution rates will come into effect starting February 2024.

2. Contribution Rate Adjustments: Circular 460 delineates the contribution rates for both mandatory and voluntary members, structured around their Fund Salary. Below are the updated rates:

Fund SalaryEmployeeEmployer
1,500 and below1.0%2.0%
Over 1,5002.0%2.0%

3. Maximum Fund Salary Increase: While the circular doesn't explicitly state the jump from a maximum contribution of 100 to 200, it confirms the upward revision of the maximum fund salary. This critical change sees the limit increase from P5,000 to P10,000. The adjustment is in line with financial calculations and benefits rates mandated by Section 7 of Republic Act No. 9679.

4. Revised Contribution Table for 2024: To provide clarity, let's break down the final contribution rates/table for 2024, encompassing both employee and employer maximum contributions for different Fund Salary brackets:

Fund SalaryEmployeeEmployerEmployee Max ContributionEmployer Max Contribution
1,500 and below1.0%2.0%1530
Over 1,5002.0%2.0%200200

5. Impact on Payroll Systems: Initial communications indicated January 2024 as the effectivity date for the new rates. However, with Circular 460, the effectivity date has been rescheduled to February 2024. Employers using payroll systems, such as MPM Payroll, need to ensure compliance with the old rate for January 2024 payrolls. The system is designed to seamlessly compute differences and refund any over-deductions for users who applied the new rate to January payrolls.


As Pag-IBIG members adapt to these changes, it is essential to stay well-informed about the updated contribution rates. Circular 460 serves as a comprehensive guide, smoothing the transition into the enhanced system effective February 2024. Brace yourselves for a more robust financial future, navigating these changes with confidence and foresight. Stay tuned for further updates and embrace the evolving landscape of Pag-IBIG contributions in 2024.

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