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


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The Modified Pag-IBIG II or MP2 is an optional savings scheme for members who want to save more and earn higher dividends on top of their regular Pag-IBIG savings.

The HMDF invests the funds collected from the Pag-IBIG MP2 mostly in its housing loan program, as well as its short-term loan programs. Funds grow through interest payments from borrowers. The rest is invested in corporate bonds, time deposits, and government securities.

READ: Pag-IBIG Contribution Table (with Detailed Computations and Explanations)

 

Why should you open a Pag IBIG MP2 account?

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

Here are five good reasons to start saving under the Pag-IBIG MP2:

 

1. Above-market dividend rates.

The most compelling reason to save under MP2 is its above-market annual dividend rates.

In the past few years, MP2 dividend rates have grown steadily, averaging at 7.65% from 2016 to 2018.

For 2019, the Pag-IBIG Fund declared the MP2 dividend rate at 7.41%.

Simply put, the MP2 is more profitable than the regular Pag-IBIG savings program. MP2 dividend rates even surpass the average interest rates of investment products from commercial banks in the Philippines.

With the HDMF’s record-breaking financial performance year after year, it’s expected to maintain the MP2 program’s remarkable dividend rates.

Check out the tables below for the Pag-IBIG Fund’s computation (based on a 7.5% dividend rate) on how members can grow their money through the MP2 program.

pag ibig mp2 1

pag ibig mp2 2

2. Easy, affordable, and flexible way to save.

Under the MP2, you need to save only at least Php 500 monthly. It makes saving money easy on the budget, especially for low-income earners.

The MP2 also offers flexibility on how often you want to save. 

You can choose to save every month if your budget is tight. Alternatively, you can deposit a higher amount in a lump sum into your MP2 account, so you don’t have to remit monthly. For example, you can pay Php 30,000 as a one-time remittance instead of paying Php 500 every month for five years.

You also have the option to receive your dividend earnings through either annual payout or compounded savings. 

If you choose to receive your dividend via annual payout, it will be credited every year to your enrolled bank account with Pag-IBIG. But with compounded earnings, you’ll have to wait until the five-year maturity period before you can receive all your dividend earnings.

 

3. Government-guaranteed and tax-free earnings.

Unlike other investment vehicles, there’s no risk of losing your savings under MP2 because they’re fully guaranteed by the government. 

However, dividend rates change per year, depending on the HDMF’s financial performance. The worst-case scenario would be getting back only your principal (the actual amount saved) without a profit, according to Pag-IBIG Fund President and CEO Acmad Rizaldy Moti.

 

4. Short-term to medium-term investment.

The MP2 program allows you to access your funds more quickly (with a five-year maturity period) than the regular Pag-IBIG savings program and other long-term investment vehicles (with maturity periods ranging from 10 to 20 years). 

This means the Pag-IBIG Fund will hold your MP2 savings for five years. After that period, you can withdraw all your savings or let it keep earning dividends for another two years.

 

5. Save as much as you want.

There’s no limit on the amount you can save under MP2.

Just remember that the minimum amount you can save is Php 500 per remittance. You may increase this during the next few months (e.g., Month 1: Php 500; Month 2: Php 5,000; Month 3: Php 10,000; and so forth) but you should never remit anything less than Php 500 each month.

You may even deposit a million pesos! You’ll have to issue a personal check or manager’s check, though, if you’ll save an amount higher than Php 500,000.

You can also enroll and maintain as many MP2 savings accounts as you want. This feature is great for meeting various financial goals. For example, you can have an MP2 account for starting a small business, another account for funding your child’s college education, and so on.

 

Who can save under MP2?

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

  • All active Pag-IBIG members, regardless of monthly income.
  • Former members or pensioners, regardless of age, who have paid at least 24 monthly contributions before retirement.

If you’re not a Pag-IBIG member yet, you must register first and pay your monthly contributions to be considered an official member.

If you’re a former member who’s qualified for the MP2 program, you can simply proceed with your MP2 enrollment.

 

How to enroll in the MP2 program.

There are two ways to open an MP2 savings account: applying directly at any Pag-IBIG office or using the online MP2 Enrollment System.

 

Option 1: Walk-in MP2 registration at a Pag-IBIG branch.

  1. Submit a completed Modified Pag-IBIG II Enrollment Form at the nearest Pag-IBIG branch.
  2. After encoding your information, the officer will issue an account number for each of your MP2 accounts. You’ll use the MP2 account number/s to remit your savings.
  3. If you want to pay your first monthly MP2 savings right away, inform the Pag-IBIG officer. You’ll be given a queue number for the payment.
  4. When your number is called, proceed to the cashier and pay the amount you indicated on your MP2 enrollment form. Receive your official receipt.

 

Option 2: Online MP2 enrollment.

Online registration for MP2 is quicker than enrolling manually, as you won’t have to fill out the form at the Pag-IBIG office. However, you’ll still need to go to the nearest branch to complete your MP2 enrollment.

Here’s how to enroll in the MP2 program online:

  1. Go to the Modified Pag-IBIG 2 Enrollment System.
  2. Type your Pag-IBIG MID number, surname, first name, and birthdate in MM/DD/YYYY format. Then enter the code as it appears on your screen. Click the Submit button.

pag ibig mp2 3

 

  1. Fill out the online form. The fields for Pag-IBIG MID no., Name, Date of Birth, Present Home Address, and E-mail Address are already pre-filled, so no need to fill them out (On the screenshot below, the personal details are concealed for privacy purposes).  Make sure to enter your Monthly Income and Desired Monthly Contribution—these are required fields.

pag ibig mp2 4

 

  1. Read the terms and conditions below the online enrollment form. Then enter the code you see. Finally, click the Submit My Application button.

pag ibig mp2 5

 

  1. A page confirming your successful MP2 enrollment will appear. Take note of your MP2 account number on the upper right corner. The page also contains your accomplished enrollment form (Again, personal details are concealed on the screenshot below).

pag ibig mp2 6

 

  1. 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 bottommost 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.

pag ibig mp2 7

 

  1. Optional: If you want to open another MP2 account, repeat steps 1 to 6.
  2. Visit the nearest Pag-IBIG office and submit the printed copy of your MP2 enrollment form/s.
  3. If you want to pay your first monthly MP2 savings right away, inform the Pag-IBIG officer. You’ll be given a queue number for the payment.
  4. When your number is called, proceed to the cashier and pay the amount you indicated on your MP2 enrollment form. Receive your official receipt.

Go back to the main article: How to Compute Your Pag-IBIG Contribution: A Complete Guide to Contribution Table and Payment

 

Tips and Warnings.

  • If you choose to save monthly, the minimum amount you can remit each month is Php 500. Since there’s no limit to how much you can save, you can remit anything higher than Php 500 initially and during the succeeding months. For example, you can save Php 500 during the first month, remit Php 20,000 during the next, Php 10,000 in the third month, and so forth.
  • The 5-year lock-in period starts from the time you make your first deposit, not when you generated your Pag-IBIG MP2 number from the website.
  • Upon application, you can choose to receive either annual dividends or leave your savings untouched for the next 5 years so you can earn more though compounded savings. The annual dividends are paid out to members through the Pag-IBIG Loyalty Card Plus.
  • Pag-IBIG MP2 contributions aren’t posted in real-time. Whether you’re paying directly to Pag-IBIG or through a third-party payment service, the payment won’t reflect in your account until the second week of the following month.
  • If you’re paying through a third-party payment channel, always keep a proof of your transaction like the actual receipt or screenshot showing your payment has been received (if you’re using a mobile wallet like GCash).

Frequently Asked Questions.

1. When should I pay my Pag-IBIG MP2 savings?

2. How can I pay my Pag-IBIG MP2 savings?

3. Which is better: increase my regular Pag-IBIG contributions or save my money under MP2?

4. When can I withdraw my MP2 savings?

5. How can I claim my MP2 savings?

6. How can I check or monitor my Pag-IBIG MP2 contributions?

7. Can I re-apply for a new MP2 Savings once my MP2 Savings matures?

8. Where does Pag-IBIG invest my MP2 contributions?

9. How can I open a Pag IBIG MP2 account if I’m an OFW working/living abroad?

10. What is the difference between Pag IBIG MP2 and SSS PESO Fund? Which one is a better government savings program?

 

About the Author.

Venus Zoleta is an experienced writer and editor for nearly 15 years, covering topics on personal finance, travel, government services, and digital marketing. Her background is in journalism and public relations. In her early 20s, she started investing and purchased a home. Now, she advocates financial literacy for Filipinos and shares her knowledge online. When she’s not working, Venus bonds with her pet cats and plans her next travel adventure.

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36 thoughts on “How to Invest in Pag-IBIG MP2 Program: An Ultimate Guide

  1. Hi. May I asked if all the member’s contributions under the MP2 program are safe and insured regardless of the amount invested by the member? For instance, If I invested P600,000.00 is there an assurance that I will get my invested money if there is a loss of productivity or revenue in a specific branch and may subject for closure.
    Thank you for your response in advance.

    1. All your savings (i.e., your principal amounting to Php 600,000) will be fully guaranteed by the government so you can rest assured that you’ll get it back, win or lose.

    1. You’ll be considered as an active member if you’ve been making monthly contributions within the last 6 months.

    1. You can find the answer here: https://filipiknow.net/how-to-check-pag-ibig-contribution/

  2. Pingback: How to Withdraw or Claim Your Pag-IBIG Contributions: An Ultimate Guide
  3. Hi,

    Thanks for a very informative article. Is there a way to monitor online the remittance I have made as well as the dividends payout? If yes, could you share the link?

    1. You can find the answer here: https://filipiknow.net/how-to-check-pag-ibig-contribution/

  4. Hi, what if I pay the lump-sum payment for 5 years as my initial payment. Can I still remit whenever I want? Thanks

  5. Good day… kapag nagtatanong aq sa SM kung tumatanggap sila ng para MP2 sabi nila hindi daw… yung sa mga loan lang daw tinatanggap nila… saan ba pwede na maghulog ng cobtributiin para sa MP2… thank you

    1. If you have GCash, you can pay it through the app as well. For more info, please check out this page: https://filipiknow.net/how-to-pay-pag-ibig-contribution/

  6. Hi, I already have contributions for a couple of months now, and I paid those contributions myself. Sometimes monthly, but now it’s hussle, can I pay like every quarter or not really regularly?
    Ex. Sept. -> no contrib. Oct -> 5k. Nov 15th -> 10k. Same month Nov 25th -> 10k.
    It that okay? My payment process is going through ECPAY (https://ecpay-online.ph), go to 7 eleven store and pay the cash there.

  7. Pingback: Layp hanks – 🌌
  8. employed ako. and binabayaran ng employee ko, Pwd ba ako mag enroll ng sarili ko sa MP2 at hindi na padaanin sa employer ko?

    1. Ask the Pag IBIG directly. However, it will be much easier if you pay your MP2 contributions via salary deductions.

  9. How to open an MP2 account here in UAE? Do I have to go to the Philippine Consulate or I can do this online?
    TIA

    1. You can find the answer here: https://filipiknow.net/how-to-open-pag-ibig-mp2-for-ofw/

    1. I think that’s possible, as long as it’s for advanced payments. In other words, you’ll be paying for three months in advance if you choose to pay monthly contributions. Otherwise, you may also opt for one-time lump sum payment if you find regular payments tiring. You can either choose monthly or one-time lump sum payment.

    2. Yea you can like I do. Minsan 4 months pa nga ko kasi I have no time going to Buendia when my work is in BGC. The lady cashier at window # 7 said to me last Nov 27 na regardless if your’e paying which months, arrears or advance, payment will count as part of savings for the year it was received by them and I asked what if I pay only in December my 12 months contribution for the whole year and she said it will be credited a whole year’s dividend kasi yearly ang basis. Not sure how accurate that statement is or if I just misunderstood it but i was paying for 4 months and I have my previous OR (bring your last OR so you can skip directly to the cashier with virtually no queue 97% of the time but you still have to line up for transaction type queuing number na mabilis lang) and para di daw nakakalito where you have to determine which months and how much are for those unpaid contributions, just pay and it will reflect as part if the year’s contribution. What about then the requirement of P500 monthly minimum i thought after leaving, the answer I think is that as long as your total cintributions for the year is no less than P6000 (12 x 500) then you are fine. If indeed this is the case, then it is very convenient.

  10. hello. I would like to ask Is it possible to remit different amount every month? For example for this month, I will remit 50,000 then next month only 5,000 then before 1 year, I will remit 10,000? Thanks

    1. Yes, you can do that. Just like what the article says, there’s no limit to the amount you can save every month but it should not be less than Php 500 which is the minimum amount you can remit every month.

  11. Hello. This is very interesting saving vehicle. Is it possible to start my MP2 with 500php and eventually increase my additional contribution in the succeeding months like 3,000 maybe or more?

    1. Yes, you can save as much as you want. But remember that the minimum amount you can save is Php 500 every month. In other words, you can remit any amount each mount as long as it’s not lower than Php 500.

  12. Nagbayad ako sa SM Bills for my MP2 Saving noong October 19, 2019. November 5, 2019 na ay hindi pa rin posted ang binayad ko. I suggest sa Pag-ibig branch kayo magbayad para sure na posted.

    1. Hindi po talaga real-time ang pag-post ng payment sa Pag-IBIG. Regardless if you pay directly to Pag IBIG or via a third-party service, the payment won’t show in your account until the second week of the following month.

  13. Hello, you mentioned there is an option to deposit monthly or annually. When should you deposit you do quarterly? Or what happens when you skipped a month or two in deposits? what if you decided to deposit more later? Does it have to be fixed monthly or regular contributions?

    1. You can pay a lump sum amount once or pay a minimum of Php 500 regularly every month. Take note that Php 500 is the minimum amount and there’s no limit to how much you can remit every month so you can pay Php 500 this month, Php 10,000 the next, Php 20,000 the third month, and so forth. But if you choose to pay monthly, you must do so regularly.

  14. Thank you for this informative simple guide.
    I would just want to know if it is required to submit the printed copy to PAG-IBIG office after registration online?

    Is it not possible to just pay after generating your MP2 Account number? Just a thought, BTW. 🙂

    Thanks!

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