Pag-IBIG MP2 vs. SSS P.E.S.O. Fund: Which Government Savings Program is Better?

The two most popular savings programs–Pag-IBIG MP2 and SSS PESO Fund–are both offered by government agencies and are considered as voluntary, optional, and separate from the regular Pag-IBIG and SSS programs, respectively.

By learning about the similarities, differences, and important features of these two savings programs, you’ll be able to determine which one is the right choice for you, depending on your future goals, your financial capacity, and eligibility.

At a Glance: The Differences Between Pag-IBIG MP2 and SSS PESO Fund.

a. Age RequirementNo Age RequirementNot more than 54 years of age
b. Minimum Monthly InvestmentPhp 500Php 1,000
c. Maximum SavingsNo Maximum Amount of SavingsPhp 500,000 per year
d. Average Interest Rate (per annum)7.41%1.85% to 3.75%
e. Maturity PeriodAfter 5 yearsUpon Retirement
f. Withdrawal (before maturity date)Full amount (if the reason is valid) or 50% of earnings (if reason is not valid)Up to 35%
g. Enrollment ProcessOver-the-counter and OnlineOver-the-counter and Online
h. Payment OptionsOnline Credit Card Payment, Paymaya, GCash,, Payment Centers, Remittance Partners, Moneygment appSSS Office, GCash, Partner Banks, Payment Centers

What are the similarities of Pag-IBIG MP2 and SSS PESO Fund?

Although Pag-IBIG MP2 and SSS PESO Fund are very different from each other when it comes to several aspects, they also have a few similarities. These include:

  • They’re both tax-free
  • They have higher interest rates than local banks
  • They’re both guaranteed by the Philippine government which means that it’s impossible to lose your contributions
  • They’re also open for both local employees and OFWs who are SSS and Pag-IBIG members
  • Both Pag-IBIG MP2 and SSS PESO Fund are optional and voluntary for those who want to supplement their regular Pag-IBIG and SSS accounts
  • Both offer two ways of paying contributions–either through a lump sum or monthly payments

The Differences Between Pag-IBIG MP2 and SSS PESO Fund: An In-Depth Comparison.

1. Eligibility Requirements.

When it comes to eligibility requirements, Pag-IBIG MP2 has fewer requirements than the SSS PESO Fund.

The Pag-IBIG MP2 has the following eligibility requirements:

  • Must be an active Pag-IBIG member (no monthly income requirement)
  • Former Pag-IBIG members or pensioners (must have paid at least 24 months of contributions before retirement)

On the other hand, the SSS PESO Fund has the following eligibility requirements:

  • Not more than 54 years of age
  • At least 6 consecutive months of paid contribution in the last 12 months before SSS P.E.S.O. Fund enrollment
  • For Self-Employed (SE), Voluntary (VM), and OFW members, the maximum contribution amount must be paid under the Regular SSS Program
  • Have not filed any final claim under the Regular SSS Program

2. Minimum Monthly Investment.

For Pag-IBIG MP2, the minimum amount per remittance is Php 500. Take note that you can increase how much you save every month. If you’ve deposited Php 500 in the previous month, you can deposit Php 1,000 or more in the upcoming months.

You also have the option to do a one-time deposit with a high lump sum amount on the first month and just wait until it completes its 5-year maturity period.

For SSS PESO Fund, the minimum monthly remittance is Php 1,000. You can also increase how much you save every month.

3. Maximum Savings.

For Pag-IBIG MP2, there’s no limit to how much you can deposit. However, it must be noted that for deposits amounting to over Php 500,000, you must issue a personal check or manager’s check.

You can even open multiple MP2 accounts if you want. You can open one for business, another one for a future major expense like buying a car or a house, and one for each of your children’s education funds.

For SSS PESO Fund, you’re only allowed up to Php 500,000 for your yearly contribution. The usual purpose of opening an SSS PESO Fund is to secure a huge amount of cash for your retirement. It can be used for starting a business, building a house, or traveling the world; it all depends on what you want to do when you retire.

4. Interest Rates.

Both Pag-IBIG MP2 and SSS PESO Fund have higher interest rates than local banks.

For Pag-IBIG MP2, the average interest rate for 2019 is 7.41%.

For SSS PESO Fund, there are several rates to consider since the funds are allocated to three different accounts. There’s a 3.75% interest per annum for funds under Retirement Account. On the other hand, both Medical and General Purpose accounts have a 1.85% interest per annum.

5. Maturity Period and Withdrawal.

Pag-IBIG MP2 accounts mature after 5 years. You also have the option to invest the principal again into a new MP2 account.

For SSS PESO Fund, your account will only mature after you’ve filed for either retirement or total disability.

When it comes to withdrawal, there are also a lot of differences between Pag-IBIG MP2 and SSS PESO Fund.

For Pag-IBIG MP2, you actually have two withdrawal options. You can wait for it to mature after 5 years and withdraw the principal amount and earnings together. Another option is to withdraw the earnings every year while letting the monthly contributions accumulate until its maturity.

If you wish to withdraw your contributions before completing the 5-year period, you’re allowed to do so if your reason is one of the following:

  • Total disability or insanity
  • Retirement for non-pensioners
  • Separation from work due to health reasons
  • Critical illness or death of the member or an immediate family member
  • Unemployment due to company closure or layoff
  • Permanent departure from the Philippines
  • Repatriation of an OFW member from his host country

If your reason for early withdrawal is not listed above, you’ll only be able to get 50% of your earnings (if you chose compounded dividends) or just your total contributions (if you chose to get your annual dividends).

For SSS PESO Fund, you can withdraw both the total contributions and earnings once you have filed for retirement or total disability. You can claim it in the form of a lump sum, monthly pension, or a combination of both.

If you wish to withdraw some of your total contributions before the maturity date, you can do so but only up to 35% of your total contribution. You’re allowed to withdraw up to 25% of your total contribution for medical purposes and up to 10% for general purposes.

Note that withdrawing some of your contributions before reaching the fifth year of membership will require you to pay the corresponding penalty and management fees.

6. Enrollment Process.

For Pag-IBIG MP2, you can open an account either online or at any Pag-IBIG office.

You can open a Pag-IBIG MP2 account online through the online MP2 enrollment system by following these steps:

1. Access the MP2 Enrollment System

2. Provide the following details:

3. Make sure to enter the correct security code to successfully proceed to enrollment

4. Fill out the online form on the next page

5. Read the Terms and Conditions

6. Enter the correct security code and click ‘Submit My Application’

7. On the next page, you’ll see a confirmation that you have successfully created your MP2 account

8. Read the Terms and Conditions and write your name, signature, and the date at the bottom of the page

9. Print your enrollment form and head to the nearest Pag-IBIG Office

10. Submit the form and pay your first monthly contribution.

For SSS PESO Fund, you can open an account over-the-counter by heading to the nearest SSS office. You can also open an SSS PESO Fund account online through the following steps:

  • Log in to your old My.SSS account
  • Select ‘E-Services’ from the main menu
  • Click ‘PESO Fund’ from the list of available options
  • You’ll be informed if you’re eligible to open an SSS PESO Fund account. Otherwise, the reasons why you can’t open an account will be indicated
  • Proceed with the registration process

7. Payment Methods.

You can pay your MP2 remittance at any Pag-IBIG office, partner payment center (Bayad Center, ECPay, MLhuillier, Savemore, SM Business Centers, SM Hypermarket), or any remittance partners (AUB, CashPinas, iRemit, PNB, and Ventaja).

You also have the option to pay online using your credit card, the Moneygment app, GCash, Paymaya, or the app.

For SSS PESO Fund, members can pay through any SSS Office, GCash, partner banks (AUB, Bank of Commerce, PNB Savings Bank, Rural Bank of Lanuza, UnionBank, and Wealth Bank), or payment centers (Bayad Center, SM Business Center, SM Hypermarket, Savemore, and ECPay).

Wrapping Up.

Both Pag-IBIG MP2 and SSS PESO Fund are risk-free and great options for saving. If you have a lot of extra cash that you want to save, you can use both investment options.

If you’re looking for a quick way to increase your savings, Pag-IBIG MP2 is perfect for you since it only has a 5-year maturity period and has higher interest rates per annum. This is the best choice if you’re saving up for a major purchase or expense in the near future.

On the other hand, if you want to be fully prepared for your retirement, the SSS PESO Fund is the most suitable option for you since it will only expire once you retire.

Go back to the main articles:

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

How to Invest in SSS PESO Fund: An Ultimate Guide