# Pag-IBIG MP2 Dividends and Earnings

Are you curious about how the Pag-IBIG MP2 Dividends and earnings is computed? This guide will assist you in your quest to save and earn money through investment in Pag-IBIG MP2 Savings. If you already have an existing MP2 Savings account, this guide will also show you how the dividend is calculated. When enrolling in MP2, you have the option to choose between two dividend payout methods.

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**Annually;**If you opted for the annual dividend payout method, you can withdraw the dividend you receive every year, and this amount will not be included in the computation of the following year’s dividend.

**Five-year (end-term).**In order to receive the total dividend along with any accumulated savings, you must wait until the 5-year maturity period has ended. This means that the yearly dividend will be added to the next year’s savings and will also earn its own dividend.

This guide will explain the computation for MP2 Savings Schemes, which includes monthly savings options and one-time payments, as well as annual dividend and end-term dividend payouts. It will also compare the differences between each scheme.

In addition to the aforementioned example savings, a real-life MP2 Savings plan will also be presented at the end of this guide. This will include a breakdown of how the dividend was calculated.

**How are MP2 Dividends computed?
**

To assist you in comprehending how the annual dividend is calculated, you may contrast the following examples with the sample data presented on the Pag-IBIG website.

#### Sample Computation 1:

MP2 Savings (P500 per month, End-Term Dividend Payout)

Based on the sample data presented in the table, the following conditions apply:

- A savings of P500 per month
- Selection of Five-Year (End Term) dividend payout option
- Total savings of P6,000 per year and a total of P30,000 after 5 years
- Dividend rate of computation is 7.5% (although this may vary, depending on the actual dividend rate for the past years)
- The total dividend amount earned after 5 years of maturity is P6,266.14
- The total accumulated value is P36,266.14, which is the amount that can be withdrawn after 5 years of maturity.

To understand how these amounts are computed, let’s discuss how the dividend amount and the total accumulated value are determined.

To calculate the dividend for Year 1, we need to find the average accumulated amount per month based on the monthly savings of 500 and the total savings of 6,000 for the year. This can be done by adding the present amount to the accumulated amount from the previous month, as shown in the table. However, this accumulated amount is only used to calculate the monthly average and is not the actual amount.

To find the average accumulated amount, we divide the total accumulated amount by 12 months. The result is 3,250.

To calculate the dividend earned for Year 1, we multiply the average accumulated amount (3,250), the dividend rate (7.5%), and the number of years (1 year). This gives us a dividend of PhP 243.75.

Since the Five-Year Dividend payout was selected, the accumulated value for the first year is PhP 6,243.75, which is the accumulated savings (PhP 6,000) plus the dividend earned for Year 1 (PhP 243.75).

After saving P30,000 for 5 years in MP2, your total savings will earn a dividend of P6,266.14. This means that when you withdraw the money, you can receive a total of P36,266.14 without being taxed.

**sample Computation 2:**

**MP2 Savings (P500 per month, Annual Dividend Payout)**

Based on the sample data provided in the table above, the following conditions can be observed:

- A savings amount of P500 per month
- Selection of an annual dividend payout
- Total savings of P6,000 per year, resulting in a total of P30,000 after five years
- The dividend rate used for computation is 7.5%. However, the actual dividend rate may vary, and you can find the actual dividend rate for previous years by checking here.
- The total dividend amount that will be received is P5,718.75.

Now, let’s take a closer look at how the dividend is computed and how it differs from an End-Term Dividend Payout.

Based on the information presented in the table, we can observe the following conditions:

- A monthly savings amount of P500
- Selection of an annual dividend payout
- Total savings of P6,000 per year, resulting in a total of P30,000 after five years
- The dividend rate used for calculation is 7.5%. However, the actual dividend rate may vary, and you can check the actual dividend rate for previous years here.
- The total dividend amount that will be received is P5,718.75.

Now, let’s examine how the dividend is calculated and how it differs from an End-Term Dividend Payout.

To calculate the average accumulated amount for 12 months, divide the total accumulated amount (P39,000) by 12, which equals P3,250.

To determine the dividend earned for Year 1, multiply the Average Accumulated Amount (P3,250), the dividend rate (7.5%), and the number of years (1 year) which equals P243.75.

Since you selected the Annual Dividend payout, you can withdraw the dividend amount of P243.75 at the end of Year 1. This amount will not be added to next year’s computation. Therefore, the total accumulated value for Year 1 is equal to the total accumulated savings, which is P6,000.

If you save P30,000 in MP2 for 5 years, you will earn a dividend of P5,718.75. This means your total savings after 5 years will be P35,718.75.

## No MP2 Account yet?

If you don’t have an existing account, you can register for an MP2 account through the Virtual Pag-IBIG website. Alternatively, we have provided a guide below to help you with the enrollment process.

To create an account, you will need a Pag-IBIG Regular Savings account which can be opened through your regular contributions or by your employer. Your 12-digit Pag-IBIG MID number corresponds to your Regular Savings account.

Based on the sample data provided in the table above, the following conditions apply:

- A one-time payment of P30,000 will be made at the beginning of Year 1.
- The selected dividend payout option is Five-Year (End-Term).
- The total savings amount is P30,000.
- The dividend rate of computation is 7.5%. Note that the actual dividend rate may vary. Please refer to the actual dividend rate for the past years.
- The total dividend amount to be received will be P13,068.88.
- The total accumulated value after 5 years will be P43,068.88.

**Let”s start inYear 1 Computation**:

Since, the one-time payment was paid at the beginning of the year, the dividend amount for year 1 based on 7.5% rate will be:

Dividend (Year 1) = 30,000*7.5%*1 = **PhP 2,250.00**

Then, the accumulated value at the end of Year 1 is the sum of cumulative savings and the dividend amount:

Accumulated Value (Year 1) = 30,000 + 2,250 = **PhP 32,250.00**

And after 5 years of savings in MP2, your total savings of P30,000 will earn a total dividend of **P 13,068.88**. And the total accumulated value of your MP2 Savings after 5 years maturity will be **P 43,068.88**.

- A one-time payment of P30,000 is made at the beginning of Year 1.
- The selected dividend payout frequency is Annually.
- The total savings amount is P30,000.
- The dividend rate used for computation is 7.5%. (Please note that the actual dividend rate may vary from year to year. Check the actual dividend rate for the past years.)
- The total dividend amount to receive is P11,250.00.
- The total accumulated value after 5 years will be P41,250.00.

To understand how the dividend is calculated, let’s examine the computation for Year 1:

Since the one-time payment was made at the beginning of the year, the dividend amount for Year 1 based on a 7.5% rate will be:

Dividend (Year 1) = 30,000 * 7.5% * 1 = PhP 2,250.00

For this example, the chosen dividend payout is annual, so this dividend amount of P2,250 can be withdrawn after Year 1. The amount will not be added in subsequent years, and only the cumulative savings of P30,000 will be carried forward.

For Year 2 through Year 5, with the same amount of P30,000, the dividend amount for each year will be the same:

Dividend (Each Year) = 30,000 * 7.5% * 1 = PhP 2,250.00

Therefore, after 5 years, the total dividend amount will be P11,250 (2,250 * 5), which is the total earnings from the P30,000 one-time payment savings. The total accumulated value will be PhP 41,250.00.

#### Comparison: Pag-IBIG MP2 Savings Schemes

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The table above shows a comparison of four different options for the sample MP2 savings, as explained earlier. If you aim to save a total of P30,000, you will notice that the dividend amounts are not the same for the option of saving P500 per month versus a one-time payment. It is evident that a one-time payment earns more compared to saving P500 per month, but the total amount after 5 years remains the same.

Another option to consider is the dividend payout. Choosing the end-term payout is a better option since the dividend earned each year will also earn a dividend for the succeeding years until maturity. In contrast, with the annual payout, the dividend earned each year will not be carried forward to subsequent years. However, you can withdraw the dividend amount earned each year on an annual basis.

**Actual MP2 Savings Dividend Rates (2022-2023)**

The MP2 Savings program offers higher dividends when compared to both the P1 and Regular Savings options. These dividends are tax-free and are calculated annually based on the performance of investments made by Pag-IBIG. The dividend amount is credited to your account on a yearly basis, and you can choose to withdraw it annually or after a 5-year maturity period. To provide some historical context, here are the MP2 Savings Dividend Rates from 2011, as source.

1. (Source)

Year | MP2 Savings Dividend Rate |
---|---|

2021 | 6.00% |

2020 | 6.12% |

2019 | 7.23% |

2018 | 7.41% |

2017 | 8.11% |

2016 | 7.43% |

2015 | 5.34% |

2014 | 4.69% |

2013 | 4.58% |

2012 | 4.67% |

## Actual MP2 Savings with Dividend Computation

Here is an actual MP2 Savings account which started on January 2020. The declared dividend for that year is 6.12%. As you can see, savings are made every month and in different amounts for a minimum of P500. And, at the end of the year, a dividend amount of P351.90 has been added to the MP2 Savings account.

This is a record of an MP2 Savings account that began in January 2020. The dividend declared for that year was 6.12%. The account holder made monthly contributions of varying amounts, with a minimum of P500. At the end of the year, a dividend of P351.90 was added to the MP2 Savings account. This pattern continued in Year 2, which is 2021, and will continue for the next three years (2022-2024).

So for the year 2020 of the above MP2 Savings with a total savings amount of PhP 12,000, the account earned a dividend amount of Php 351.90 for that year.

Dividend Earned (Year 1 – 2020) = 5750*6.12%*1 year = **PhP 351.90**

This means, it earns PhP 351.90 for the PhP 12,000 total savings. And, since this account chooses an end-term dividend payout, the accumulated total savings at the end of Year 1 is PhP 12,351.90.

Accumulated Value (end of Year 1 – 2020) = 12,000 + 351.90 = **PhP 12,351.90**

**New to Pag-IBIG MP2 Savings?**

“If you’re new to Pag-IBIG MP2 Savings, it’s a program offered by Pag-IBIG to their members that’s voluntary and provides a special savings facility with a maturity of 5 years. By saving as little as P500, you can earn higher dividends through MP2 Savings. If you want to learn more about MP2, click here.”

**Keypoints and Takeaways**

MP2 Savings is a unique and optional savings plan offered by Pag-IBIG. It provides a higher dividend compared to the regular Pag-IBIG Savings (P1), and the earned dividend is tax-free and backed by the government. There are two dividend payout options: annual and five-year end term payout. MP2 is a voluntary savings program, so you can save any amount at any time and are not required to save every month. It’s recommended to start saving early to accumulate more after the five-year maturity period. Happy savings!