The Modified Pag-IBIG II or Pag-IBIG MP2 is an elective savings plan designed for members who wish to save more money and earn higher dividends in addition to their usual Pag-IBIG savings. Opting for Pag-IBIG MP2 is a good way to enhance your funds or savings,HOW TO INVEST IN PAG-IBIG MP2: COMPLETE GUIDE as it offers an attractive dividend rate of 7%.


The Pag-IBIG MP2 Savings Program is a discretionary savings scheme offered to Pag-IBIG Fund members who want to save more money and earn substantial dividends, in addition to their regular Pag-IBIG Fund savings.


You can open a Pag-IBIG MP2 account if you belong to any of the following groups:

All individuals who are currently enrolled as members of Pag-IBIG, regardless of their monthly income, are eligible for the benefits offered by the organization.

The benefits offered by Pag-IBIG are available to all active members, regardless of their monthly income.

Former pensioners who have paid at least 24 monthly contributions before retirement are also eligible for these benefits, regardless of their age.

To become an official member and access these benefits, you must first register with Pag-IBIG and make monthly contributions.

Whether you earn a high or low monthly income, if you are currently a member of Pag-IBIG, you are eligible for its benefits.


“Enrolling in Pag-IBIG MP2 is not mandatory for members, but opting in can have long-term benefits. Here are five compelling reasons to start saving with Pag-IBIG MP2:

Higher dividend rates: Pag-IBIG MP2 offers above-market annual dividend rates, making it a cost-effective alternative to regular Pag-IBIG savings. From 2015 to 2017, the MP2 dividend rates averaged 6.96%. In 2018, the MP2 dividend rate was declared at 7.41%, and in 2019, it was 7.23%. These rates are higher than the average interest rates offered by commercial banks in the Philippines.

Financial performance: The HDMF has consistently performed well financially, indicating that the MP2 program’s remarkable dividend rates are likely to continue.

Flexible savings options: With the MP2 program, members have the flexibility to choose their preferred savings options, including how much to contribute and when to withdraw their savings.

Tax-free savings: The MP2 program offers tax-free savings, allowing members to earn more from their investments.

Low-risk investment: The MP2 program is a low-risk investment option since it is backed by the government and managed by a reputable financial institution like the HDMF.”


You don’t have to pay the 20% final withholding tax on dividend earnings, which means you’ll receive the entire amount tax-free. To determine your MP2 dividend, you need to multiply the dividend rate for the relevant year by your average monthly balance.

Calculating the MP2 dividend isn’t as straightforward as it seems, however. Before you begin the calculation, it’s essential to understand what the dividend rate and average monthly balance are.

The dividend rate is the interest rate based on the Pag-IBIG Fund’s annual net income. The Fund generally announces the dividend rate for a particular year in the first or second quarter of the following year via a news release on the Pag-IBIG website. For example, the Pag-IBIG Fund announced the dividend rate for 2018 as 7.41% in April 2019.

The average monthly balance refers to the average of the MP2 savings you’ve earned by year-end. To calculate your average monthly balance, you must first determine your total cumulative savings for the year and divide it by 12 (months). For easier calculation, keep track of your monthly MP2 savings in an Excel file or Google Spreadsheet and then compute the average.

For example, suppose you’re saving Php 500 each month from January to December 2020. Your cumulative savings plotted on a spreadsheet would appear like this:

January 2020 500
February 2020 1,000
March 2020 1,500
April 2020 2,000
May 2020 2,500
June 2020 3,000
July 2020 3,500
August 2020 4,000
September 2020 4,500
October 2020 5,000
November 2020 5,500
December 2020 6,000
Average Monthly Balance 3,250


To determine your average monthly balance for 2020, add up your cumulative savings for the year, which is Php 39,000, and then divide it by 12 to get a quotient of Php 3,250. This is your average monthly balance.

Alternatively, you can use the AVERAGE function in Excel or Google Spreadsheet to calculate your average monthly balance, which will also result in Php 3,250.

Assuming a dividend rate of 7.5%, you can calculate your total dividend for 2020 by multiplying the dividend rate by your average monthly balance: 0.075 x Php 3,250 = Php 243.75.

Repeat these steps for the next four years to compute your dividends. If you choose the compounded savings option, add the dividend amount from the previous year to your cumulative savings in January of the following year. If you choose the annual dividend payout option, do not add the previous year’s dividend amount to the current year, as it is paid out to you every year.

To give you an idea of the annual dividend payout over five years, refer to the table below from the Pag-IBIG Fund. This table is based on a monthly payment of Php 500 and a 7.5% dividend rate.


The dividend rates for the MP2 program have been consistently increasing and have not gone below 7% since 2016. Although these rates may seem too good to be true, there is no need to worry or doubt their validity.

The reason for the high dividend rates is due to the Pag-IBIG Fund’s strong financial performance, which has been attributed to its efficient operations and significant collections from housing loan payments. Since 70% of the Fund’s funds are invested in the Pag-IBIG housing loan program, MP2 investors earn from the interest payments made by housing loan borrowers.

Moreover, MP2 dividends are derived from at least 70% of the Fund’s annual net income, which has been steadily increasing over the past six years. In 2019, the Fund recorded its highest ever net gain of Php 34.37 billion, resulting in higher dividend earnings for MP2 account holders.

Overall, the Pag-IBIG Fund’s impressive financial performance has led to the upward trend of MP2 dividend rates, providing a reliable investment opportunity for those interested in earning passive income.


There are two methods of opening an MP2 savings account: applying in person at any Pag-IBIG office, or utilizing the online MP2 Enrollment System.


Step 1: Go to the nearest Pag-IBIG branch and submit a fully-accomplished Modified Pag-IBIG II Enrollment Form.

Step 2: Once your information is encoded, the officer will provide you with an account number for your MP2 account. This account number will be used for your savings remittance.

Step 3: If you wish to make your first monthly MP2 savings payment immediately, inform the Pag-IBIG officer. You will be given a queue number stub for payment.

Step 4: When your number is called, proceed to the cashier and pay the amount indicated on your MP2 enrollment form. After payment, you will receive an official receipt.


Registering for MP2 online is faster than manual enrollment since you do not have to fill out the form at the Pag-IBIG office. Nevertheless, you are still required to personally visit the nearest branch to complete your MP2 enrollment.

Visit the Modified Pag-IBIG 2 Enrollment System website.

Enter your Pag-IBIG MID number, surname, first name, and birthdate in MM/DD/YYYY format. Then enter the code as it appears on the screen. Click the Submit button.

Fill out the online form. The fields for Pag-IBIG MID number, name, date of birth, present home address, and email address are pre-filled. Enter your monthly income and desired monthly contribution, which are required fields.

Read the terms and conditions, enter the code you see, and click the Submit My Application button.

A page confirming your successful Pag-IBIG MP2 enrollment will appear. Take note of your MP2 account number in the upper right corner. The page also contains your accomplished enrollment form.

Read the terms and conditions, write your name, and sign at the bottom of the page. Write down the date as well. Click the link at the bottom part of the page to print your MP2 enrollment form. You may save it first as a PDF file for printing later. If you’re an employee, print an additional copy and submit it to your HR staff or employer so you can remit your MP2 savings via salary deduction.

If you want to open another MP2 account, repeat steps 1 to 6.

Visit the nearest Pag-IBIG office and submit the printed copy of your MP2 enrollment form/s.

If you want to pay your first monthly MP2 savings immediately, inform the Pag-IBIG officer. You’ll be given a queue number for the payment of your application.

When your number is called, proceed to the cashier and pay the amount you indicated on your MP2 enrollment form. Receive your official receipt.


Here are the different ways to expand your Pag-IBIG MP2 investment based on your objectives.

  1. For long-term investment (10+ years).

    To achieve your long-term financial goals like retirement or buying a house, it’s important to invest your money wisely in your 20s or 30s, as you have over ten years to do so. Growing your money over time is crucial, and one way to do this is through Pag-IBIG MP2 savings. To achieve this, follow these steps:

    • Open a Pag-IBIG MP2 savings account with compounded dividend optionMake a one-time contribution of at least Php 30,000 to your MP2 account.
    • Withdraw your earnings after the five-year maturity period.
    • Re-establish your earnings by opening a new MP2 account.

Repeat the process for another five years and so on.Withdraw your total

2. For capital preservation.

If you are nearing or have reached retirement age, you may want to prioritize preserving      your capital instead of taking investment risks for long-term growth. The Pag-IBIG MP2 can  be a helpful tool in achieving this goal, as it offers an annual dividend payout option that allows you to earn dividends while keeping your investment’s value intact. Here are the steps to take:

Open a Pag-IBIG MP2 account with the annual dividend payout option.

Make a one-time contribution to your MP2 account (the higher the amount, the higher the return).

Receive your annual dividend through your Pag-IBIG Loyalty Card Plus or registered bank account linked to your MP2 account.

Withdraw your earnings once your MP2 account reaches its five-year maturity period.

Reinvest your earnings by opening a new MP2 account.

3. For multiple medium-term investment goals.

The Pag-IBIG Fund offers the opportunity to open multiple Pag-IBIG MP2 accounts, allowing individuals to take advantage of this feature if they have multiple goals they wish to achieve within the next five years or so. The number of accounts an individual can open will depend on the expenses they are preparing for. Each account can be designated for a specific purpose, such as a travel fund, tuition fund, wedding fund, or home/vehicle purchase, among others.


investing in Pag-IBIG MP2 is a great way to achieve your financial goals and secure your future. By following our complete guide, beginners can learn how to invest in Pag-IBIG MP2 and enjoy the benefits it offers, such as higher returns and lower risks. With the right knowledge and preparation, investing in Pag-IBIG MP2 can be a straightforward and rewarding experience. Start investing today and take the first step towards achieving your financial goals.

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