Money Matters

Want to Save More Money? You May Want to Look Into Pag-IBIG MP2 Savings

You can also earn higher dividends with this savings program

Photography: Shutterstock

The pandemic has reshaped the way people spend and save with many searching for ways to save and grow their hard-earned money.

One of the savings programs that has generated high interest among Filipinos is the voluntary savings program of Pag-IBIG.

According to agency officials, from January to October 2021, Pag-IBIG Fund members saved over P52 billion—exceeding full-year pre-pandemic figures.

READ: Here's How to Apply for a Pag-IBIG Housing Loan

Why has the Pag-IBIG MP2 Savings Program attracted many Filipinos? How does one enroll in the savings program? Is it a safe savings program?

Here are answers to some of the questions you might have:

What is the Pag-IBIG MP2 Savings Program?

The Modified Pag-IBIG II (MP2) Savings Program is a voluntary savings platform that has a five-year maturity for Pag-IBIG members who want to earn higher dividends and save more.

The MP2 program is different and separate from the regular savings program of Pag-IBIG where the P100 monthly contributions auto-deducted from employees' salaries go. This means that Pag-IBIG members who want to save through the MP2 Savings Program need to enroll separately with the Pag-IBIG Fund.


Who can enroll in the Pag-IBIG MP2 Savings Program?

According to Pag-IBIG, the following can enroll:

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  • Active Pag-IBIG Fund Members
  • Former Pag-IBIG Fund Members with other sources of monthly income and/or pensioners, regardless of age, with at least 24 monthly savings prior to retirement.


What are the key features of the Pag-IBIG MP2 Savings Program?

  • You can save for a minimum of P500 per month.
  • There is no limit to how much you want to save.
  • You can open and maintain multiple MP2 savings accounts.
  • Your MP2 savings earn higher annual dividends compared to your regular savings program with Pag-IBIG.
  • Your dividends are tax-free whether you choose to withdraw annually or after the 5-year maturity period.
  • Your MP2 savings are government-guaranteed.
  • You can view your MP2 Savings online, via Virtual Pag-IBIG.


READ: 6 Things You Can Do If You're Having a Hard Time Saving Money

How much dividends will my MP2 savings earn?

MP2 savings earn higher dividends than the regular savings program. Dividends for the MP2 savings program are derived from 70% of the annual net income of Pag-IBIG.


To give you a picture of how much your savings will earn, the MP2 savings earned a dividend rate of 6.12% in 2020 despite the economic recession due to the COVID-19 pandemic.

From 2016-2018, Pag-IBIG said the average MP2 dividend rate is at 7.65%.

Here's a sample computation from Pag-IBIG based on a 7.5% dividend rate with monthly savings of P500:

Screenshot from PAG-IBIG website


When will I receive my dividends?

PAG-IBIG gives two options on how you can receive your MP2 dividends:

  • Compound the annual dividends and receive it upon full withdrawal of your MP2 savings after the 5-year maturity period
  • Annual pay-outs with your MP2 dividends credited to your savings or checking account enrolled in any of PAG-IBIG accredited banks.


How to enroll in MP2 Savings Program?

You can enroll online by visiting the MP2 Enrollment page. You can also visit your nearest Pag-IBIG branch and submit your accomplished MP2 Savings application form which you can download here.

How do I save money in the MP2 Savings Program?

For employees, you can save in the MP2 Savings through your employer who can deduct your monthly MP2 savings from your salary and remit this to Pag-IBIG Fund.

You can also choose to do this on your own by remitting your contributions via Virtual Pag-IBIG, at any Pag-IBIG Fund Branch, or through authorized collecting partners and online payment channels.


These include the following:

  • GCash
  • 7-Eleven
  • Bayad Center
  • M.Lhuillier


Can I pre-terminate my MP2 Savings?

Yes you can pre-terminate your MP2 Savings before the 5-year maturity but the payouts vary depending on the circumstances:

  • If you choose to compound your dividends and then decide to pre-terminate your MP2 savings with a reason not listed in the terms and conditions of Pag-IBIG, you will receive your entire savings and 50% of the dividends earned.
  • If you choose annual dividend payouts and then decide to pre-terminate your MP2 savings with a reason not listed in Pag-IBIG's terms and conditions, you will receive your entire savings without any dividends earned.


Read more about Pag-IBIG's terms and conditions for the MP2 Savings Program here.

This story originally appeared on

* Minor edits have been made by the editors.

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