Pag-IBIG Fund

How it works

For most professional remote hires the working rule is 2% employee and 2% employer on fund salary, capped at a ₱10,000 maximum fund salary, so ₱200 plus ₱200. Lower wages can use a 1% employee rate under the published table. This cap is why Pag-IBIG barely moves when you raise a senior EA from ₱50,000 to ₱80,000. Still register. Still remit. A housing loan the worker wants later depends on a live membership, not on your goodwill.

Example: ₱8,000 fund-salary logic versus ₱80,000 basic: both seniors and juniors often sit at the ₱200 employer cap. Budget ₱2,400 a year employer and stop inventing 2% of gross.

How it differs

SSS and PhilHealth keep scaling further. Maximum fund salary is the cap object. Loaded cost should show ₱200, not 2% of USD.

Common errors

Deducting 2% of uncapped basic. Skipping Pag-IBIG because the worker ‘doesn’t want a house.’

In practice

Treat Pag-IBIG Fund as a week-one operating object. Look at the next peso payslip and the next remittance file. If this word does not show up there, the quote from the sales call is incomplete. Write an owner - founder, local employer, or worker - and a date you will look at it again: first cutoff, first holiday, or first miss. If nobody can show a contract clause, a payslip line, a calendar block, or a checklist box, you do not have pag-ibig fund yet. You have a conversation. Convert the conversation before the person starts, while changing the deal still costs a paragraph rather than a resignation. Re-read the worked example above against the actual hire in front of you. If the numbers in that example cannot be swapped for this seat’s pesos, hours, and start date, the brief is still unfinished.