Pag-IBIG vs MPF explained

Pag-IBIG (HDMF) and the SSS Mandatory Provident Fund (MPF) are both savings components attached to employment, but they serve different roles. This guide clarifies the differences so you can read your payslip with confidence.

Pag-IBIG basics

Pag-IBIG contributions are based on a capped compensation base (₱5,000). Employees commonly contribute 1% if the monthly salary ≤ ₱1,500, else 2%. Employers typically contribute 2%. Funds can be used for loans and long-term savings programs.

MPF basics

The SSS MPF adds a provident savings layer on top of the traditional SSS program. A simplified approach is to take the MSC up to ₱35,000, subtract ₱20,000, and apply 15%; split one-third employee and two-thirds employer. If the MSC is ≤ ₱20,000, MPF is zero.

What you’ll notice on payslips

• Pag-IBIG employee share is small due to the ₱5,000 cap, but appears monthly.
• MPF may be zero at lower salaries and increases with higher MSCs.
• Employers shoulder a larger share for both, especially MPF.

Which is “better”?

They’re complementary. Pag-IBIG provides accessible housing/short-term loans and savings options. MPF is a retirement-oriented top-up under SSS. Both contribute to long-term financial security. Your employer’s adherence to current rules is what matters for actual deductions.

Use our Contributions calculator to see how Pag-IBIG and MPF change at different salary levels.

Disclaimer: For guidance only. Always verify with official sources.