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Last Updated on March 13, 2023 by Lamudi
Aside from the Pag-IBIG Housing Loan, Pag-IBIG also has a savings program that allows members to earn from their savings. The Pag-IBIG MP2 program is a voluntary savings plan designed for current and past Pag-IBIG fund members. Members can save money and receive significant dividends in addition to their usual savings, similar to investing in mutual funds.
Compared to conventional Pag-IBIG deposits, the MP2 program allows participants to access funds as early as five years. The five-year maturity savings facility will enable members to save more and receive higher returns in addition to their regular savings. The program is also open to previous Pag-IBIG Fund pensioners and retirees.
Advantages of the Pag-IBIG MP2 Program
While the Pag-IBIG Fund doesn’t require the MP2 Program for all members, it can help you earn extra money with the guide of the Pag-IBIG Fund. The above-market dividend rates are one of the primary reasons to invest. Pag-IBIG achieved the highest rate of 8.11% in 2017. While it has somewhat decreased—6.12% in 2020 and 6.00% in 2021—investing through the MP2 program is still worthwhile. One of the reasons is that dividend earnings are tax-free. Nevertheless, the process is simple, with members saving as little as P500 per remittance.
Who Can Apply for the Pag-IBIG MP2 Program?
To be eligible for the MP2 program, you must be an active member of Pag-IBIG, regardless of your monthly wage. Former pensioners, regardless of age, may apply if they paid at least 24 months of payments before retirement. Take note that you must first register and pay your monthly contributions to be an official Pag-IBIG member.
Enrolling in Pag-IBIG MP2 Program
Establishing a Pag-IBIG MP2 account is simple and can be accomplished in two ways:
- Go to your nearest Pag-IBIG shop and submit a completed Pag-IBIG MP2 form. If you want to pay your first MP2 contribution, you can do so in person at the office.
- You can also use Pag-IBIG’s online services if you want to enroll at the convenience of your home. Please remember that you must still physically visit a Pag-IBIG office to finalize your enrollment.
Pag-IBIG MP2 Payment Schemes
There are four types of payment schemes available for those who are interested in enrolling in the Pag-IBIG MP2 Program:
- Monthly Compounded Savings with End-Year Dividend Payout
- Monthly Savings with Annual Dividend Payout
- One-Time Compounded Savings with End-Year Dividend Payout
- One-Time Payment Annual Dividend Payout
In an end-year dividend payout, the dividend accumulated annually will be added to the total accumulated value for the next year. This makes the dividend payout bigger. On the other hand, you can withdraw the dividend each year for annual dividend payouts. However, the value won’t be added to the total accumulated value for the following years.
How to Remit in Your Pag-IBIG MP2 Savings Account
Here are several methods for saving in MP2:
For employed members, there is a salary deduction. You can choose to have your contribution deducted from your monthly salary through your employer. Your employer will subsequently remit to the Pag-IBIG Fund.
Another option is to transfer your contribution online using a number of online channels.
The following are the approved online payment channels:
- GCash
- Moneygment App via Cashpinas
- Coins.ph via Bayad
- PayMaya
You may also make over-the-counter (OTC) transfers at:
- Any branch of Pag-IBIG Fund
- Authorized collecting partners’ outlets or branches in the Philippines, including:
- Asia United Bank
- Robinsons Bank
- United Coconut Planters’ Bank
- SM Business Centers
- Bayad
- M. Lhuillier
- ECPay accredited merchants
- Authorized collecting partners’ outlets or branches overseas such as:
- Philippine National Bank
- Asia United Bank
- IRemit powered merchants
- Ventaja powered merchants
- Cashpinas powered merchants
Pag-IBIG MP2 Sample Computation
There are two types of Pag-IBIG MP2 computation: end-year dividend payout and monthly dividend payout.
Pag-IBIG Fund saves at least seventy percent (70%) of its annual net profits as dividends and credits it proportionally to its members’ deposits. This indicates that the more one saves, the bigger the profits that member will receive. As mandated by its charter, Pag-IBIG Fund invests at least 70% of its investible money in housing finance. It also holds government bonds and business bonds.
Since 2011, below are the MP2 Savings Dividend Rates:
Sample Computations for Pag-IBIG MP2 End-Year Dividend Payout
For End-Year Dividend Payout, members can only withdraw their savings after the maturity date, which is five years. The sample dividend used in the computation is 6.0%, which was the MP2 Savings dividend rate in 2021.
Monthly Payment with End-Year Dividend Payout
- In this case, Php 500 is the sample monthly savings.
| Month Covered | Monthly Savings (MS) | Accumulated MS per year | Cumulative Savings | Dividend Amount | Total Accumulated Value (VAT) |
| Year 1 | Php 500 | Php 6,000 | Php 6,000 | Php 150 | Php 6,150 |
| Year 2 | Php 500 | Php 6,000 | Php 12,000 | Php 519 | Php 12,669 |
| Year 3 | Php 500 | Php 6,000 | Php 18,000 | Php 910.14 | Php 19,429.14 |
| Year 4 | Php 500 | Php 6,000 | Php 24,000 | Php 1,315.75 | Php 26,744.89 |
| Year 5 | Php 500 | Php 6,000 | Php 30,0000 | Php 1,754.69 | Php 34,499.58 |
| Total | – | Php 30,000 | – | Php 4,499.58 | Php 34,499.58 |
Year 1
In the first year, contribute Php 500 monthly for a total of Php 6,000 per year. We must first determine the monthly average cumulative amount to calculate the dividend.
The dividend amount is the sum of the current amount and the accumulated amount from the previous amount. Remember that this accumulated amount will only be used to calculate the monthly average, not the actual amount. Then, divide the total accumulated amount by 12 months to get the average accumulated amount.
Total Accumulated Amount: Monthly Payment x 12 months x 5 (Php 6,000 x 12 x 5) = Php 30,000
Average Accumulated Amount (AAA): Total Accumulated Amount/12 (Php 30,000/12) = Php 2,500
Dividend Rate (DR): 6.0% (as of 2021)
- Don’t forget to convert the percentage when computing (6.0/100 = 0.06)
Dividend Earned (Year 1): AAA (Php 2,500) x DR (0.06) = Php 150
Total Accumulated Value: Cumulative Savings (Php 6,000) + Dividend Earned for Year 1 (Php 150) = Php 6,150
Year 2
To begin the computation for the second year, compute the dividend earned for Year 2 alone. Since you are still saving Php 500 monthly for a year, the dividend for Year 2 will be Php 150. Beginning in Year 1, the accumulated savings of Php 6,150 will receive a dividend, which is Php 369. So for Year 2, the total dividend is Php 519, and the total accumulated value is Php 12,669.
Below is a more detailed breakdown of the computation for Year 2:
Dividend from Accumulated Value (Year 1) = Total Accumulated Value (Php 6,150) x DR converted (0.06) = Php 369
Total Dividend Earned (Year 2) = Dividend Earned (Php 150) + Dividend Accumulated Value Year 1 (369) = Php 519
Cumulative Savings Year 2 = Total Accumulated Value Year 1 (Php 6,150) + Per Year Savings (6000) = Php 12,150
Total Accumulated Value (Year 2) = Cumulative Savings (Php 12,150) + Dividend Earned for Year 2 (519) = Php 12,669
Year 3
Like Year 2, Year 3 alone will yield the same dividend of Php 150. And the whole accumulated value of Year 2 will earn a dividend of Php 971.68. The total dividend will be Php 1,215.43 for Year 3.
That said, the total accumulated value for Year 3 will now be Php 19,429.14.
Dividend from Accumulated Value (Year 2) = Total Accumulated Value (Php 12,669) x DR converted (0.06) = 760.14
Total Dividend Earned (Year 3) = Dividend Earned (Php 150) + Dividend Accumulated Value Year 2 (369) = Php 910.14
Cumulative Savings Year 2 = Total Accumulated Value Year 2 (12,669) + Per Year Savings (6000) = Php 18,669
Total Accumulated Value (Year 3) = Cumulative Savings (18,669) + Dividend Earned Year 3 (910.14) = Php 19,429.14
Year 4
The same calculation. The dividend for Year 4 alone will be Php 150, plus the accumulated value dividend from Year 3 of Php 1,165.75. Year 4 total dividend will be Php 1,315.75. At the end of year 4, the total cumulative value will be Php 26,744.89.
Dividend from Accumulated Value (Year 3) = Total Accumulated Value (Php 19,429.14) x DR converted (0.06) = 1,165.75
Total Dividend Earned (Year 4) = Dividend Earned (Php 150) + Dividend Accumulated Value Year 3 (Php 1,165.75) = Php 1,315.75
Cumulative Savings Year 3 = Total Accumulated Value Year 3 (Php 19,429.14) + Per Year Savings (Php 6,000) = Php 25,429.14
Total Accumulated Value (Year 4) = Cumulative Savings (Php 25,429.14) + Dividend Earned Year 4 (Php 1,315.75) = Php 26,744.89
Year 5
For the fifth and final year, your 500-peso monthly savings will earn a Php 150 dividend after 12 months. Then, add the dividend for the previous year’s accumulated amount, which is 1,604.69. The total dividend for Year 5 will be Php 1,754.69, and the entire accumulated value at the end of the period after five years will be Php 34,499.58.
Dividend from Accumulated Value (Year 4) = Total Accumulated Value (Php 26,744.89) x DR converted (0.06) = 1,604.69
Total Dividend Earned (Year 5) = Dividend Earned (Php 150) + Dividend Accumulated Value Year 4 (1,604.69) = Php 1,754.69
Cumulative Savings Year 4 = Total Accumulated Value Year 4 (26,744.89) + Per Year Savings (Php 6,000) = Php 32,744.89.
Total Accumulated Value (Year 5) = Cumulative Savings (Php 32,744.89) + Dividend Earned Year 5 (1,754.69) = Php 34,499.58
The total withdrawable amount for a Pag-IBIG MP2 monthly payment of Php 500 is Php 34,499.58.
One-Time Payment with End-Year Dividend Payout
A one-time payment has a different computation in terms of dividend and accumulated value.
- In this case, Php 30,000 is the sample one-time payment value.
| Month Covered | Monthly Savings (MS) | Accumulated MS per year | Cumulative Savings | Dividend Amount | Total Accumulated Value (VAT) |
| Year 1 | Php 30,000 | Php 30,000 | Php 30,000 | Php 1,800 | Php 31,800 |
| Year 2 | – | – | Php 31,800 | Php 1,908 | Php 33,708 |
| Year 3 | – | – | Php 33,708 | Php 2,022.48 | Php 35,730.48 |
| Year 4 | – | – | Php 35,730.48 | Php 2,143.83 | Php 37,874.31 |
| Year 5 | – | – | Php 37,874.31 | Php 2,272.46 | Php 40,146.77 |
| Total | – | Php 30,000 | – | Php 10,146.77 | Php 40,146.77 |
Year 1
Dividend (Year 1) = Php 30,000 x 6% = Php 1,800
Year 1 Accumulated Value = Php 30,000 + Php 1,800 = Php 31,800
Year 2
Dividend (Year 2) = Total Accumulated Value Year 1 (Php 31,800) x 6% = Php 1,908
Year 2 Accumulated Value = Php 31,800 + Php 1,908 = Php 33,708
Year 3
Dividend (Year 3) = Total Accumulated Value Year 2 (Php 33,708) x 6% = Php 2,022.48
Year 3 Accumulated Value = Php 33,708 + Php 2,022.48 = Php 35,730.48
Year 4
Dividend (Year 4) = Total Accumulated Value Year 3 (Php 35,730.48) x 6% = Php 2,143.83
Year 4 Accumulated Value = Php 35,730.48 + Php 2,143.83 = Php 37,874.31
Year 5
Dividend (Year 5) = Total Accumulated Value Year 4 (37,874.31) x 6% = Php 2,272.46
Year 5 Accumulated Value = Php 37,874.31 + Php 2,272.46 = Php 40,146.77
In the Pag-IBIG MP2 one-time payment end-year payout, your total savings of Php 30,000 will yield a total dividend of Php10,146.7. After five years, the total accumulated value of your MP2 Savings will be Php 40,146.77 if the dividend rate is 6%.
Sample Computations for Pag-IBIG MP2 Annual Dividend Payout
For annual dividend payout, members can withdraw the dividend at the end of each year. The downside is that you will have a slightly lower total accumulated value.
- The sample dividend used in the computation is 6.0%, which was the MP2 Savings dividend rate in 2021.
Monthly Payment with Annual Dividend Payout
- In this case, Php 500 is the sample monthly savings.
| Month Covered | Monthly Savings (MS) | Accumulated MS per year | Cumulative Savings | Dividend Amount | Total Accumulated Value (VAT) |
| Year 1 | Php 500 | Php 6,000 | Php 6,000 | Php 150 | Php 6,000 |
| Year 2 | Php 500 | Php 6,000 | Php 12,000 | Php 510 | Php 12,000 |
| Year 3 | Php 500 | Php 6,000 | Php 18,000 | Php 870 | Php 18,000 |
| Year 4 | Php 500 | Php 6,000 | Php 24,000 | Php 1,230 | Php 24,000 |
| Year 5 | Php 500 | Php 6,000 | Php 30,0000 | Php 1,590 | Php 30,0000 |
| Total | – | Php 30,000 | – | Php 4,350 | Php 30,000 |
Year 1
Assume you save Php 500 every month for a total of Php 6,000 per year. To compute the dividend, we must first determine the average monthly cumulative amount. The dividend amount is the sum of the current amount and the amount accrued from the previous amount. Please bear in mind that this total will only be used to determine the monthly average and is not the actual amount.
To get the average cumulative amount, divide the total accumulated amount by 12 months.
Total Accumulated Amount: Monthly Payment x 12 months x 5 (Php 6,000 x 12 x 5) = Php 30,000
Average Accumulated Amount (AAA): Total Accumulated Amount/12 (Php 30,000/12) = Php 2,500
Dividend Rate (DR): 6.0% (as of 2021)
- Do not forget to convert the percentage when computing (6.0/100 = 0.06)
Dividend Earned (Year 1): AAA (Php 2,500) x DR (0.06) = Php 150
The dividend earned is Php 150, which can be withdrawn at the end of year 1. The cumulative savings will be Php 6,000, dividend earned will not be added to the total accumulated value.
Year 2
To begin the Year 2 computation, compute the dividend earned for Year 2 alone; the dividend will be Php 150. In addition, starting in Year 1, the accumulated savings of Php 6,000 will earn a dividend of Php 6,000 x 0.06, which is Php 360.
Hence, at the conclusion of year 2, the total dividend earned is:
Dividends Paid (Year 2) = Php 150 + Php 360 = Php 510
As a result, this sum (Php 510) represents the total dividend earned at the conclusion of year 2 and can be withdrawn at any time. And the total amount that will be added to the computation for next year is Php 12,000. If the total savings is Php 6,000 each year, the total savings for two years will be Php 12,000 (Php 6,000 x 2 years).
Year 3
Years 2 and 3 will yield the same dividend of 150. And the whole accumulated value for year 2 (Php 12,000) will earn a dividend of 720. The total dividend earned for year 3 will be Php 150 + Php 720 = Php 870, this amount can be withdrawn at any time and will not be added to the computation for the next year. The accumulated value will now be Php 18,000 at the end of Year 3.
Dividend from Year 2 Accumulated Value: Php 12,000 x 0.06 = 720
Year 3 Dividend Earned: Average Dividend (Php 150) + Year 2 Dividend from Accumulated Value (Php 720) = Php 870
Total Accumulated Value for Year 3: Php 6,000 x 3 years = Php 18,000
Year 4
The same computation as years 2 and 3. The payout for Year 4 alone will be Php 150, plus the dividend from Year 3, which is Php 18,000 x 0.06 = 1,080
The dividend total for year 4 = Php 150 + Php 1,080 = Php 1,230
At the end of the fourth year, the total cumulative value will be Php 24,000.
Year 5
For the fifth and final year, your monthly savings of Php 500 will provide a dividend of Php 150 after 12 months. Then, add the dividend for the previous year’s accumulated value, Php 24,000 x 0.06 = Php 1,440
Year 5 total dividend = Php 150 + Php 1,440 = Php 1,590
The entire accumulated value at the end of the period after five years will be Php 30,000.
One-Time Payment with Annual Dividend Payout
- In this case, Php 30,000 is the sample one-time payment value.
| Month Covered | Monthly Savings (MS) | Accumulated MS per year | Cumulative Savings | Dividend Amount | Total Accumulated Value (VAT) |
| Year 1 | Php 30,000 | Php 30,000 | Php 30,000 | Php 1,800 | Php 30,000 |
| Year 2 | – | – | Php 30,000 | Php 1,800 | Php 30,000 |
| Year 3 | – | – | Php 30,000 | Php 1,800 | Php 30,000 |
| Year 4 | – | – | Php 30,000 | Php 1,800 | Php 30,000 |
| Year 5 | – | – | Php 30,000 | Php 1,800 | Php 30,000 |
| Total | – | Php 30,000 | – | Php 9,000 | Php 30,000 |
Years 1 to 5
Because the one-time payment was made at the start of the year, the dividend amount for year 1 will be:
Dividend (Each Year) = Php 30,000 x 6% x 1 = Php 1,800
Because the dividend payout in this example is annual, the Php 1,800 dividend can be withdrawn each year. Only the cumulative savings of Php 30,000 will be carried forward. Thus, for Years 2 through 5, with the same amount of Php 30,000, the dividend amount will be the same.
Comparison of Pag-IBIG MP2 Annual Dividend Payout vs. End-Year Dividend Payout
| MP2 Savings Options | Dividend Payout Option | Total Savings | Total Dividend | Total Accumulated Value |
| Monthly Payment | End-Year Payout | Php 30,000 | Php 4,499.58 | Php 34,499.58 |
| Monthly Payment | Annual Payout | Php 30,000 | Php 4,350 | Php 34,350 |
| One-Time Payment | End-Year Payout | Php 30,000 | Php 10,146.77 | Php 40,146.77 |
| One-Time Payment | Annual Payout | Php 30,000 | Php 9,000 | Php 39,000 |
It can be shown that saving a one-time contribution earns more than saving Php 500 per month but results in the same total amount after five years.
Another contrast is the dividend payout choice; the end-term payout is preferable. As a result, the dividend each year will likewise earn a dividend in subsequent years until maturity. The dividend earned each year in the annual payout isn’t carried forward to succeeding years. However, you can withdraw the dividend amount each year.
Pag-IBIG MP2 FAQs
Q: Is there a minimum amount I should save in my MP2 Savings account?
A: Yes. The minimum MP2 savings for each remittance is Php 500.
Q: Is there a restriction on how much I may save in the MP2 Savings?
A: There are no restrictions. Under MP2, you can save as much as you wish. For one-time savings of more than Php 500,000.00, you must send such an amount in person or Manager’s Check.
Members holding MP2 Savings in excess of Php 100,000 should also present proof of income or source/s of money in accordance with the MP2 Savings Enrollment Form.
Q: Can I switch to another dividend payout option before my MP2 Savings mature?
A: No. The dividend payout method you select on your MP2 Savings application is permanent. As such, this will be your payout mode for the duration of your 5-year savings period. You may, however, start a new MP2 Savings account and select your preferred dividend payout option.
Q: Can I reapply for a new MP2 Savings account once my current one matures?
A: Yes. You may reapply for a new MP2 Savings account once your MP2 Savings account has reached the 5-year maturity limit.
Q: Can I open several MP2 Savings Accounts?
A: Yes. You are permitted to open and manage multiple MP2 Savings accounts.
For more tips and advice, check out our previous journals here.
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