Looking for more ways to grow your money over time? The Pag-IBIG MP2 savings program is worth considering. The government-backed savings scheme isn’t like any typical savings account—it’s a low-risk yet high-return investment.
With the Pag-IBIG Fund’s great financial performance every year, MP2 investors can rest easy knowing that their funds are being managed well. This is among the reasons the MP2 program has become increasingly popular in recent years. So much so that MP2 savings collected by Pag-IBIG went up by 176% on January to September 2019 from the same period in 2018.
Interested? Here’s what you need to know about Pag-IBIG MP2 and how to apply for and invest in the savings program.
What is Pag-IBIG MP2?
The Modified Pag-IBIG II, better known as MP2, is an optional savings program for current and former Pag-IBIG Fund members who want to grow their savings in addition to their Pag-IBIG regular savings.
Pag-IBIG MP2 Key Features
MP2 makes saving and investing money easy, affordable, and quite profitable for Filipinos. If you’re not sure yet whether to open an MP2 account, here’s some basic information about the savings program to help you decide.
- Budget-friendly investment – For as low as PHP 500 monthly, you can invest in MP2. No penalties if you miss a contribution for certain months (though it’s best to regularly remit your MP2 contributions).
- Government-guaranteed savings – You’re assured that you won’t lose your principal since the Philippine government guarantees it.
- Tax-free dividends – Receive your MP2 dividends without tax deductions either every year or in five years.
- Up to 7% annual dividend rate – The Pag-IBIG MP2 interest rate is higher than the regular Pag-IBIG savings program and even those of bank accounts, time deposits, and other investment vehicles.
- No limit to the amount you can save – Remit as much money into your MP2 account as your budget allows. For one-time payments exceeding PHP 500,000, a personal/manager’s check is required.
- Multiple MP2 savings accounts – You can open as many MP2 accounts as you’d like. This is ideal if you’re saving money for different goals, like for emergencies, tuition fund, travel, retirement, etc.
- Five-year maturity period – Your MP2 savings will mature in five years, after which you can withdraw your money. This makes Pag-IBIG MP2 ideal for medium-term investment goals.
Who Can Enroll in the MP2 Program?
Photo from Pag-IBIG Fund website
You qualify for the MP2 savings program if you belong to any of the following groups:
- Active Pag-IBIG Fund members regardless of monthly income
- Former Pag-IBIG members with other sources of monthly income
- Pensioners, regardless of age, who have paid at least 24 monthly Pag-IBIG I contributions before retirement
Inactive members who have stopped paying Pag-IBIG contributions may apply for Pag-IBIG MP2 by resuming their payments until they reach the minimum 24 monthly contribution requirement.
Not registered with the Pag-IBIG Fund yet? You can register online as a voluntary member and pay contributions for at least 24 months before you can open an MP2 savings account.
How to Apply for Pag-IBIG MP2
You can enroll in the Pag-IBIG MP2 savings program online or in-person at a Pag-IBIG office. Read on to learn how to open an MP2 savings account.
Pag-IBIG MP2 Online Enrollment Procedure
Here are the steps to applying for the MP2 savings program online:
- Visit the Modified Pag-IBIG II Enrollment page at www.pagibigfundservices.com/MP2Enrollment.
- Enter your Pag-IBIG Membership ID (MID) number, last name, first name, and birthdate (MM/DD/YYYY).
- Type the CAPTCHA code.
- Click the Submit button.
- In the Desired Monthly Contribution field, enter the amount you wish to remit every month for your Pag-IBIG MP2 savings.
- Select your preferred option from the following dropdown menus:
- Preferred Dividend Payout: Whether you’d like to receive your MP2 dividends every year or by the end of the five-year term
- Mode of Payment: Whether you prefer to pay your MP2 contributions through salary deduction, over-the-counter at any Pag-IBIG branch, or through any Pag-IBIG Fund-accredited collecting partners
- Source of Funds: Your main income source where your MP2 payments will come from
- Click the Submit button.
- Your completed Modified Pag-IBIG II Enrollment Form will be displayed, which contains your 12-digit MP2 account number. You may save this form as a PDF file or print it.
Pag-IBIG MP2 Manual Enrollment Procedure
If you have other transactions you need to complete at the nearest Pag-IBIG office, then you might as well open your Pag-IBIG MP2 savings account there. Note that you can transact only at a branch under the general community quarantine (GCQ).
Pag-IBIG MP2 Requirements
Simply submit the following documents for your MP2 application:
- Valid ID
- Accomplished Modified Pag-IBIG II Enrollment Form
- ATM card or passbook of your bank account where you’d like to receive your MP2 savings and dividends
How to Invest in Pag-IBIG MP2
As soon as you’re done with your MP2 enrollment, you can start saving under the investment program. You can either make a one-time lump sum payment or a monthly contribution of smaller amounts to your Pag-IBIG MP2 savings account.
Pag-IBIG MP2 Modes of Payment
There are three major ways to pay your MP2 contribution:
- Salary deduction by your employer
- Personally at any Pag-IBIG branch
- Or through any accredited collection partner
For employees, the best Pag-IBIG MP2 mode of payment is through salary deduction, as MP2 savings are automatically deducted from the salary and remitted to the MP2 account.
For freelancers, entrepreneurs, and unemployed Pag-IBIG members, the most convenient payment mode is through third-party payment channels, especially the online facilities.
Where to Pay Pag-IBIG MP2 Contributions
Over-the-Counter Payment Centers:
- 7-Eleven (Must first secure a Payment Instruction Page from the ECPay website)
- Bayad Center
- M. Lhuillier
- SM Business Centers, including Savemore and SM Hypermarket bills payment counters
Online Payment Channels:
|Pag-IBIG MP2 Online Payment Channels||Payment Methods Accepted|
|Pag-IBIG Online Payment Facility||PayMaya, Visa, Mastercard, and JCB credit cards|
|Gcash app||Gcash wallet|
|Coins.ph app||Coins.ph wallet|
|Moneygment app||Moneygment wallet, bank deposit, PayPal, ECPay, Dragonpay, 7-Eleven|
Whatever online payment facility you use, choose “Modified Pag-IBIG 2” as your payment type and provide your MP2 account number.
How to Check Your Pag-IBIG MP2 Savings Online
You may monitor your posted Pag-IBIG MP2 contributions through Virtual Pag-IBIG. But before you can do that, you have to create a Virtual Pag-IBIG account first.
After your Virtual Pag-IBIG account is activated, you can already verify your Pag-IBIG MP2 savings online. Here’s how.
- Log in to your Virtual Pag-IBIG account.
- On the left menu, select “MP2 Savings” under the Products tab.
- View your Pag-IBIG MP2 contribution payments on the screen.
Pag-IBIG MP2 Savings Program FAQs
1. Where are Pag-IBIG MP2 contributions invested?
MP2 contributions paid by Pag-IBIG members are invested in Pag-IBIG housing loans (which earn interest paid by member-borrowers), government securities, and corporate bonds. Investing money in fixed securities makes the MP2 a less risky investment compared to stocks and other high-risk instruments.
2. How much dividends will I earn from my MP2 savings?
The annual MP2 dividends you’ll receive will depend on the dividend rate set by the Pag-IBIG for a particular year during your investment term. The annual rates vary depending on Pag-IBIG Fund’s financial performance and other factors.
Since 2016, the dividend rates have never fallen below 7%. In the past five years, the average MP2 dividend rate is 7.55%.
For example, if you’ve been saving PHP 500 from 2020 to 2024, you’re likely to receive a total dividend of PHP 5,718.75 (if you chose to get your dividends annually). Your total dividend will be higher (PHP 6,266.14) if you opt to get paid the lump sum after your MP2 account’s five-year term.
You may check sample MP2 computations at the Pag-IBIG website (Click the Frequently Asked Questions tab to view the sample computations).
3. How will I receive my MP2 dividends?
Your MP2 dividends will be credited to your nominated savings or checking account with a Pag-IBIG Fund-accredited bank (e.g., DBP, LANDBANK, etc.).
If you don’t have a bank account in the Philippines, your MP2 dividends will be paid via checks.
4. Can I withdraw my MP2 savings before its maturity?
Ideally, like in other investments, it’s best to just let the funds in your MP2 account grow until your account matures. This way, you get to maximize your profits.
However, an unfortunate life situation might make withdrawing your MP2 savings necessary. The Pag-IBIG Fund allows early withdrawal under any of the following scenarios:
- Total disability or insanity
- Termination from employment due to health reasons
- Death/Critical illness of the MP2 account holder or an immediate family member
- Migration to another country
- Unemployment due to layoff or company closure
- OFW repatriation from the host country
You may withdraw your MP2 savings for a reason other than those allowed by Pag-IBIG. But you’ll be paid only half of the total dividend earned (if you chose to receive dividends after five years) or only your contributions (if you chose the annual dividend payout option).
5. Can I enroll a new MP2 savings account after maturity?
Yes, you can open new MP2 savings accounts once your existing account matures. This is a good strategy if you wish to invest your money in the long term, like for retirement.
6. What will happen if I don’t claim my dividends?
Unclaimed MP2 savings after the five-year maturity will keep on earning dividends (based on the dividend rates of the Pag-IBIG Regular Savings Program). After two years, it will no longer earn dividends and must be withdrawn.
Investing in the Pag-IBIG MP2 savings program is a good way to build savings to fund your financial goals in the future. It makes a great passive income source, too. Thus, you should enroll an account immediately, so you have more time to grow your money.
-  Members save record-high P37B in Jan-Sept 2019 in Pag-IBIG Fund; MP2 Savings breach P8B, up 176% (Pag-IBIG Fund press release)
-  Pag-IBIG Fund Online Registration System
-  Modified Pag-IBIG II Enrollment Form
-  Pag-IBIG Online Payment Facility
-  Virtual Pag-IBIG Portal
-  MP2 (Modified Pag-IBIG 2) Savings page (Pag-IBIG Fund website)
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