The Modified Pag-IBIG II or ag-IBIG MP2 is a voluntary savings plan offered to members HOW TO INVEST IN PAG-IBIG MP2: COMPLETE GUIDE who wish to accumulate more funds and receive higher dividends in addition to their standard Pag-IBIG savings. Opting for the Pag-IBIG MP2 could be an excellent choice for those who aim to increase their savings as it provides a remarkable 7% dividend rate on their investments.


The Pag-IBIG MP2 Savings Program is an elective savings scheme available for Pag-IBIG Fund members who desire to accumulate additional funds and receive substantial dividends, in conjunction with their regular Pag-IBIG Fund savings.


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

This means that all active Pag-IBIG members, regardless of their monthly income, will be covered. Former pensioners who have paid at least 24 monthly contributions prior to retirement will also be included, regardless of their age. However, if you are not yet a Pag-IBIG member, you must register first and start paying your monthly contributions to be considered an official member.


Pag-IBIG MP2 enrollment is not required for Pag-IBIG members, but doing so will benefit you in the long run.

  1. Above-market dividend rates: One of the most attractive benefits of saving under MP2 is the above-market annual dividend rates.
  2. Consistent dividend rate growth: MP2 dividend rates have steadily increased in recent years, averaging 6.96% from 2015 to 2017.
  3. High dividend rates: In 2018, the Pag-IBIG Fund declared the MP2 dividend rate at 7.41%, and it was 7.23% in 2019. This makes MP2 more cost-effective than the regular Pag-IBIG savings program, with dividend rates exceeding the average interest rates of investment products from commercial banks in the Philippines.
  4. Unmatched financial performance: The HDMF has a proven track record of delivering exceptional financial performance year after year, indicating that the MP2 program’s remarkable dividend rates are likely to continue.
  5. Opportunity for higher returns: By saving under MP2, you have the opportunity to earn higher returns on your investment compared to other savings programs or low-risk investments


To put it in other words, when you earn dividends from MP2, you do not have to pay a 20% final withholding tax, which means you receive the full amount. To compute your MP2 dividend, multiply the dividend rate for the specific year by your average monthly balance. However, calculating the MP2 dividend is not that simple. You need to understand the dividend rate and the average monthly balance.

The dividend rate is the interest rate based on Pag-IBIG Fund’s annual net income, which is announced for a specific year in the first or second quarter of the following year through a news release on the Pag-IBIG website. On the other hand, the average monthly balance is the average of your MP2 savings by the year-end. To compute your average monthly balance, you need to know your total cumulative savings for the year and divide it by 12 (months). You can make the calculation easier by documenting your monthly MP2 savings through a spreadsheet and then computing the average.

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 find your average monthly balance for 2020, take the sum of your cumulative savings, which is Php 39,000, and divide it by 12. This will give you an average monthly balance of Php 3,250. You can also use the AVERAGE function in Excel or Google Spreadsheet to get the same result.

To calculate your dividend for 2020, use the dividend rate of 7.5% that Pag-IBIG Fund uses in its sample dividend computations. Multiply the dividend rate by your average monthly balance, which is Php 3,250, to get a total dividend of Php 243.75 for 2020. Repeat this process for the next four years.

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. However, if you choose the annual dividend payout option, you do not need to add the previous year’s dividend amount to the current year’s savings as it is paid out every year.

The table below from the Pag-IBIG Fund shows the annual dividend payout for five years if you pay Php 500 monthly to your MP2 account based on a 7.5% dividend rate.


  • MP2 dividend rates have consistently increased since 2016, never going below 7%.
  • The high rates are not a cause for concern or doubt.
  • The operational efficiency and financial performance of the Pag-IBIG Fund have contributed to the growth of MP2 rates.
  • The Fund invests 70% of its funds in the Pag-IBIG housing loan program, and MP2 investors earn from the interest payments of housing loan borrowers.
  • MP2 dividends are derived from at least 70% of the Pag-IBIG Fund’s annual net income, which has steadily grown for the past six years.
  • In 2019, the Fund recorded a net gain of Php 34.37 billion, the highest ever, leading to higher dividend earnings for MP2 account holders.


There are two methods to initiate an MP2 savings account: either by directly applying at any Pag-IBIG office or by utilizing the online MP2 Enrollment System.


STEP 1: Complete the Modified Pag-IBIG II Enrollment Form and submit it to the nearest Pag-IBIG branch.

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

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

STEP 4: When your number is called, proceed to the cashier and pay the amount you specified on your MP2 enrollment form. You will receive your official receipt.


Registering for MP2 online is faster compared to manual enrollment since you won’t need to fill out the form at the Pag-IBIG office. Nevertheless, you will still need to personally visit the nearest branch to finalize your MP2 enrollment.”

Here’s how to register in the Pag-IBIG MP2 program online:

To enroll in the Modified Pag-IBIG 2 program, follow these steps:

Step 1: Access the Modified Pag-IBIG 2 Enrollment System.

Step 2: Enter your Pag-IBIG MID number, last name, first name, and birthdate in MM/DD/YYYY format, as well as the code shown on the screen. Click the Submit button.

Step 3: Complete the online form. Some fields (Pag-IBIG MID number, name, date of birth, present home address, and email address) are already filled in for you. However, you must fill in your monthly income and desired monthly contribution.

Step 4: Read the terms and conditions and enter the code displayed on the screen. Click the Submit My Application button.

Step 5: A page confirming your successful enrollment will appear. Take note of your MP2 account number in the upper right corner. The page will also include a copy of your completed enrollment form.

Step 6: Read the terms and conditions, then sign and date the bottom of the page. Click the link at the bottom of the page to print your MP2 enrollment form. Save it as a PDF file if desired. If you are an employee, print an additional copy to submit to your HR staff or employer.

Step 7: Repeat steps 1-6 if you want to open another MP2 account.

Step 8: Go to the nearest Pag-IBIG office and submit the printed copy of your MP2 enrollment form/s.

Step 9: If you wish to make your first monthly savings payment immediately, inform the Pag-IBIG officer. You will be given a queue number for payment.

STEP 10: 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).

    When you’re in your 20s or 30s, you have more than a decade to invest your money towards achieving long-term financial goals such as building your retirement fund or purchasing your dream home. The key objective should be to increase your wealth over time. The following are ways to achieve this through Pag-IBIG MP2 savings:

To create a Pag-IBIG MP2 savings account with compounded dividend option, follow these steps:

  • Open a Pag-IBIG MP2 savings account with compounded dividend option.
  • Make a one-time contribution to the account, ideally not less than Php 30,000.
  • Wait for the account to mature after five years.
  • Withdraw your earnings at the end of the maturity period.
  • Re-establish your earnings by opening a new MP2 account.
  • Repeat the process for another five years or as desired.
  • When you’ve reached your target earnings, withdraw your total cumulative savings and dividends.

2. For capital preservation.

If you are nearing or have reached retirement age, it may not be advisable to take investment risks anymore. Rather than focusing on long-term investment growth, the main objective is to preserve your capital to avoid losing its value to inflation. One potential solution to achieve this goal is through the Pag-IBIG MP2 program, which offers an annual dividend payout option. This allows you to receive regular dividends while maintaining the value of your investment. Here’s how to take advantage of this option:

To begin earning through the annual dividend payout option in Pag-IBIG MP2, follow these steps:

  • Open a Pag-IBIG MP2 account and select the annual dividend payout option.
  • Make a one-time contribution to your MP2 account, as a higher contribution amount leads to a higher return.
  • Receive your annual dividend payout through your registered bank account or Pag-IBIG Loyalty Card Plus.
  • Wait until your MP2 account reaches the maturity period of five years to withdraw your cumulative earnings.
  • After withdrawing, you can reinvest your earnings by opening a new MP2 account.

Repeat the process for another five years, or as long as you need a steady income stream.

3. For multiple medium-term investment goals

The Pag IBIG Fund allows for the opening of multiple Pag-IBIG MP2 accounts, providing an opportunity to pursue multiple financial goals over the next five years or more.

The number of accounts that can be opened will be determined by the specific expenses that are being planned for. Each account can be designated for a specific purpose, such as saving for travel, education, a wedding, or for purchasing a home or vehicle. It is advisable to take advantage of this feature if you have several financial objectives that you wish to accomplish.


investing in the Pag-IBIG MP2 program can be a great way to grow your money and earn higher returns compared to traditional savings accounts. By following the steps outlined in the complete guide, you can easily start investing in the program and enjoy the benefits of compounded earnings over time. However, it is important to assess your financial goals and risk tolerance before investing and to ensure that the program aligns with your overall investment strategy.

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