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

So if your goal is to increase your funds or savings, one good option is to invest it in Pag-IBIG MP2 with an impressive 7% dividend rate for your money.


The  Pag-IBIG MP2 Savings Program is a voluntary savings policy for Pag-IBIG Fund members who choose to save more and earn high dividends, along with their Pag-IBIG Fund Regular Savings.


who can save pag-ibig mp2

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

  • All active Pag-IBIG members, no matter how much your monthly income is.
  • Former pensioners, regardless of age, who have at least paid 24 monthly contributions before retirement.

If you’re not a Pag-IBIG member, you must register first and pay 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.

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

  1. above-market dividend rates.

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

MP2 dividend rates have grown firmly in the past few years, averaging 6.96% from 2015 to 2017.

In 2018, the Pag-IBIG Fund declared the MP2 dividend rate at 7.41%. While the stated MP2 dividend rate in 2019 is 7.23%.

In short, the MP2 is more cost-effective compared to the regular Pag-IBIG savings program. MP2 dividend rates exceed the average interest rates of investment products from commercial banks in the Philippines.

With the HDMF’s unmatched financial performance year after year, it’s expected to continue the MP2 program’s remarkable dividend rates.


how to compute pag-ibig mp2

Dividend earnings are tax-free, meaning you’ll receive the full amount without paying the 20% final withholding tax.

To calculate your MP2 dividend, multiply the dividend rate for the appropriate year by your average monthly balance.

Here’s the formula for MP2 dividend computation:

Dividend = Dividend rate x Average monthly balance

Calculating the MP2 dividend is not as simple as it looks, though.

Before proceeding with the computation, it’s essential to understand first what the dividend rate and the average monthly balance mean.

The dividend rate is the interest rate based on the Pag-IBIG Fund’s annual net income. The Fund usually announces the dividend rate for a particular year in the first or second quarter of the following year through a news release on the Pag-IBIG website.

For example, the dividend rate for 2018 is 7.41%, which the Pag-IBIG Fund stated in April 2019.

Meanwhile, the average monthly balance refers to the average of the MP2 savings you’ve earned by the year-end. To figure out your average monthly balance, you must first know your total cumulative savings for the year and then divide it by 12 (months).

For more straightforward calculation, document your monthly MP2 savings through an Excel file or Google Spreadsheet and then compute the average.

For instance, you’re saving Php 500 per month from January to December 2020. Plotted on a spreadsheet, your cumulative savings look 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

The sum of the cumulative savings for 2020 is Php 39,000. Divide that by 12, and you’ll get a  quotient of Php 3,250. That’s your average monthly balance.

An easier way to compute the average monthly balance is to use the AVERAGE function in Excel or Google Spreadsheet, which yields the same amount: Php 3,250.

You can already calculate the dividend for the year 2020 based on a dividend rate of 7.5% (the rate the Pag-IBIG Fund always uses in its sample dividend computations).

0.075 (dividend rate) x Php 3,250 (your average monthly balance) = Php 243.75 (total dividend for 2020)

Repeat all the steps above to compute your dividends for the next four years.

If you avail of the compounded savings option, don’t forget to add the dividend amount from the previous year to the cumulative savings in January of the following year.

But if you avail of the annual dividend payout option, don’t add the dividend amount from the previous year to the current year because it’s paid out to you every year.

For your reference, the table below from the Pag-IBIG Fund shows the annual dividend payout over five years if you pay Php 500 monthly to your MP2 account (based on a 7.5% dividend rate).



MP2 dividend rates have been on an ascending trend. The rates have never gone down below 7% since 2016 up to the present.

While these figures seem too good to be true, there’s no reason to worry or doubt why the Pag-IBIG MP2 dividend rates are “too high.”

Over the years, the operational Fund’s active financial performance has accelerated the MP2 rates. The government agency attributes its solid financial standing to its operational efficiencies and substantial housing loan payment collections.

Because the Pag-IBIG Fund invests 70% of its funds in its Pag-IBIG housing loan program, people investing in MP2 earn from the interest payments of housing loan borrowers.

Also, MP2 dividends come from at least 70% of the Pag-IBIG Fund’s annual net income, which has seen steady growth for the past six years. In 2019, the Fund documented a net gain of Php 34.37 billion—the highest ever.

A remarkable annual financial performance converts to higher dividend earnings for MP2 account holders.


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



STEP 1: Submit a fully-accomplished Modified Pag-IBIG II Enrollment Form at the nearest Pag-IBIG branch.

STEP 2: After encoding your information, the officer will issue an account number for your MP2 accounts. You’ll use this account number to remit your savings.

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

STEP 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.



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 still need to physically go to the nearest branch to complete your MP2 enrollment.

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

STEP 1: Go to the Modified Pag-IBIG 2 Enrollment System.

STEP 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.

STEP 3: 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 there is no need to fill them out (On the screenshot below, the personal details are concealed for privacy purposes).  Don’t forget to enter your Monthly Income and Desired Monthly Contribution—these are required fields.

STEP 4: Read the terms and conditions below the online enrollment form. Then enter the code you see. Finally, click the Submit My Application button.

STEP 5: A page confirming your successful Pag-IBIG MP2 enrollment will appear. Take note, and don’t forget your MP2 account number in the upper right corner. The page also contains your accomplished enrollment form (Again, personal details are concealed on the screenshot below).

STEP 6: 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.

STEP 7: Optional: If you want to open another MP2 account, repeat steps 1 to 6.

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

STEP 9: 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.

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).

In your 20s or 30s, you have more than ten years to invest your money for any long-term financial goal, like building your retirement fund or buying your dream home.

For this, your objective should be to grow your money over time. Here’s how to achieve it through Pag-IBIG MP2 savings:

  • Create a Pag-IBIG MP2 savings account with the compounded dividend option.
  • Give a one-time MP2 contribution (ideally not less than Php 30,000).
  • Withdraw your earnings at the end of 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 cumulative savings and dividends when you’ve reached your target earnings.
  1. For capital preservation.

If you’re in your retirement age (or approaching it), you can’t take investment risks anymore. So instead of investing in the long-term, your goal is to preserve your capital so that your money doesn’t lose its value to inflation.

Pag-IBIG MP2 can help you achieve that goal through the annual dividend payout option, which allows you to receive dividends per year while keeping the value of your investment. Here’s how to do it:

  • Create a Pag-IBIG MP2 account with the annual dividend payout option.
  • Give a one-time MP2 contribution (The higher the amount, the higher return you’ll get).
  • Receive your dividend every year through your Pag-IBIG Loyalty Card Plus or your registered bank account in your MP2 account opening.
  • Withdraw your cumulative earnings once your MP2 account reaches the five-year maturity period.
  • Re-establish/invest your earnings by opening a new MP2 account.
  • Repeat the process for another five years and so on, as long as you need a steady income stream.
  1. For multiple medium-term investment goals.

The Pag-IBIG Fund grants opening as many Pag-IBIG MP2 accounts as possible. Take advantage of this feature if you have several goals to achieve for the next five years or so.

The maximum number of accounts will depend on the expenses you’re preparing for. Each version will be established for a specific purpose, such as a travel fund, tuition fund, wedding fund, home/vehicle purchase, etc.

For more info, click here: Pag-IBIG Calamity Loan Application: How to Apply?
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