How to Invest in Pag-IBIG MP2: An Ultimate Guide

The Modified Pag-IBIG II, or MP2, is a savings scheme available to members who want to save more and earn higher dividends in addition to their regular Pag-IBIG savings. If you’re going to increase your funds or savings, one good option is to invest it in Pag-IBIG MP2, which has an impressive dividend rate of 7%.

The funds collected from the Pag-IBIG MP2 have primarily invested in the HMDF’s housing loan program and its short-term loan programs. Borrowers’ interest payments help to grow the funds. The remaining funds are invested in corporate bonds, time deposits, and government securities. This information should help you get started.

Who could save under PagIBIG MP2?

If you are a member of any of the following groups, you can open a Pag-IBIG MP2 account:

  • All active Pag-IBIG members, regardless of how much money they earn on a monthly basis.
  • Former pensioners who paid at least 24 monthly contributions before retirement, regardless of age.

Those who are not yet members of Pag-IBIG must first register and pay their monthly contributions to be considered official members of the organization.

What are the beneficial effects of opening a Pag IBIG MP2 account?

Pag-IBIG members are not required to enroll in MP2, but doing so will benefit you in the long run.

Here are five important reasons for starting to save under the Pag-IBIG MP2:

1. Dividend rate that is higher than the market rate

The most compelling reason to save under MP2 is that its annual dividend rates are higher than the market.

 The dividend rate on MP2 stock has increased steadily, averaging 6.96 percent on average from 2015 to 2017.

The MP2 dividend rate was set at 7.41 percent by the Pag-IBIG Fund for the fiscal year 2018. Meanwhile, the MP2 dividend rate for 2019 has been declared to be 7.23 percent.

The MP2 is more profitable than the regular Pag-IBIG savings program, to put it simply. According to the company, MP2 dividend rates are even higher than the average interest rates on investment products offered by commercial banks in the Philippines.

2. A simple, affordable, and flexible method of saving

Under the MP2, you need to save Php 500 as an initial deposit and another Php 500 as a monthly deposit if you plan to remit every month afterward.

It makes it simple to save money on a budget, which is especially beneficial for low-income earners.

The MP2 also allows you to choose how frequently you want to save.

If you are on a tight budget, you can choose to save every month. Optionally, you can deposit a higher lump sum into your MP2 account. For example, instead of paying Php 500 every month for five years, you can pay Php 30,000 as a one-time remittance.

Additionally, you have the option of receiving your dividend earnings annually or through compounded savings.

If you choose to receive your dividend as an annual payout, it will be credited to your Pag-IBIG-enrolled bank account each year. However, with compounded earnings, you must wait until the five-year maturity period to receive all of your dividend earnings.

3. Income guaranteed and tax-free

Because the government fully guarantees them, unlike other investment vehicles, there is no risk of losing your money if you put your money into MP2.

On the other hand, dividend rates vary from year to year, depending on the financial performance of the HDMF.

According to Pag-IBIG Fund President and CEO Acmad Rizaldy Moti, the worst-case scenario would be receiving only your principal (the amount you saved) and receiving no profit from your investment.

On the other hand, if your investment performs well, you can withdraw your entire capital and earnings without paying any withholding taxes when it matures.

4. Investment for short to medium term

In comparison to other long-term investment vehicles (with maturity periods ranging from 10 to 20 years), the MP2 application allows you to access your funds more quickly (with a maturity period of up to five years)

The Pag-IBIG Fund will hold your MP2 savings for five years, which means that your MP2 savings will be protected. Then you have the option of either withdrawing all of your savings or allowing them to continue earning dividends for another two years after that.

5. You are free to save as much as you want

The amount of money you can save with MP2 is limitless.

Remember that the smallest amount you can save is Php 500. You may want to increase this amount over the next few months (e.g., Month 1: Php 500; Month 2: Php 5,000; Month 3: Php 10,000; and so forth).

However, there is no penalty for failing to make a deposit as long as your total savings account balance averages at least Php 500 per month.

You can save as long as you want, whether monthly, twice a month, quarterly or once for a single lump-sum payment, as there is no penalty for not filing the deposit.

You can also put up a million pesos in your account! If you intend to save Php 500,000 or more, you must write a personal or manager’s check.

How Do I Apply For the PAG-Ibig MP2 Program?

There are two ways to open an MP2 savings account: either by applying directly at any Pag-IBIG branch or enrolling online through the MP2 Enrollment System.

Pag-IBIG branch walk-in MP2 registration

STEP 1: Submit a Modified Pag-IBIG II Enrollment Form that has been fully completed to the Pag-IBIG branch that is nearest to you.

STEP 2: Once the officer has encoded your information, he or she will assign an account number to each of your MP2 accounts. In order to remit your savings, you will need to use this account number.

STEP 3: Inform the Pag-IBIG officer if you intend to pay your first monthly MP2 savings as soon as you receive it. You will be given a stub with your queue number on it for the payment process.

STEP 4: When your number is called, proceed to the cashier’s counter and pay the amount you specified on your MP2 enrollment form. Take a look at your official receipt.


Online MP2 registration is faster than manual registration because you won’t have to fill out a form at the Pag-IBIG office.

STEP 1. Go to the Modified Pag-IBIG 2 Enrollment System to enroll in the program. Then, as shown on your screen, enter the code. Submit the form by clicking the Submit button.

STEP 2. Complete the online form. There is no need to fill out the fields for Pag-IBIG MID number, Name, Date of Birth, Current Home Address, and E-mail Address because they are already pre-filled.

STEP 3. In the field provided, enter your Desired Monthly Contribution. Note that the payment frequency is adjustable; this field is intended for paying by salary deduction. If you’re an employee who wants to remit money every month, make sure your HR department has set up automatic payroll deduction for your account. Otherwise, your desired amount will not be deducted from your monthly salary automatically.

STEP 4. Please respond to the following questions: (a) Preferred Dividend Payout – whether you want to receive MP2 dividends immediately or at the end of the five-year term; (b) Mode of Payment – how you want to pay your MP2 contributions, which can be through salary deduction, over-the-counter, or one of the Pag-IBIG-accredited payment channels; and (c) Source of Funds – how you earn your money from which MP2 contributions are derived; and Once you’ve finished making your selections from the drop-down menus, click on the Submit button to finish the process.

STEP 5. Examine all of the information on your unprinted MP2, including the terms and conditions. Take note of your MP2 account number, which can be found in the upper right corner.

STEP 6. To print your MP2 enrollment form, go to the bottom of the page and click the link. You can save it as a PDF file first and then print it later. If you are an employee, print an extra copy and give it to your HR department or employer so that you can remit your MP2 savings through salary deduction.

Optional: Steps 1–6 must be repeated if you want to open another MP2 account.

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