Quick answer
MP2 (Modified Pag-IBIG II) is a voluntary 5-year savings program from Pag-IBIG Fund that pays tax-free dividends. It earned 7.12% for 2025, declared in February 2026. You need to be an active Pag-IBIG member (or a pensioner), the minimum is ₱500 per remittance with no maximum, and you can choose yearly payouts or let dividends compound until maturity.
Key takeaways
- MP2 dividend for 2025: 7.12% (regular Pag-IBIG savings earned 6.62%). Rates are declared yearly and are not guaranteed.
- Dividends are tax-free, and savings are government-guaranteed under the Pag-IBIG Fund law.
- Minimum ₱500 per remittance, no maximum. Term is 5 years; early withdrawal is allowed only for specific reasons.
- Choose compounded (dividends paid at maturity) or annual payout (credited to your bank account each year).
- Open an account online through Virtual Pag-IBIG, then pay via the app, e-wallets, banks or Pag-IBIG branches.
On this page
MP2 is one of the most popular savings tools in the Philippines, and for good reason: it pays dividends well above bank deposit rates, those dividends are tax-free, and the program is backed by the government. It also locks your money for five years, so it works best for goals with a clear timeline.
What is MP2?
The Modified Pag-IBIG II (MP2) Savings Program is a voluntary savings program run by the Home Development Mutual Fund (Pag-IBIG Fund). It is separate from your mandatory monthly Pag-IBIG contribution (the ₱200 deducted from your salary). MP2 money is pooled and invested mostly in Pag-IBIG's housing loans, and Pag-IBIG shares its net income as dividends.
MP2 dividend rates
Pag-IBIG declares the dividend rate each year based on its earnings. The rate for a year is announced early the following year.
| Year | MP2 dividend | Regular savings dividend |
|---|---|---|
| 2025 (declared Feb 2026) | 7.12% | 6.62% |
For context, Pag-IBIG reported a record ₱64.34 billion in total dividends for 2025, about 98.6% of its net income, above the 70% minimum required by law. MP2 rates in recent years have generally stayed in the 6% to 7% range, but past dividends are not a guarantee of future rates.
Key features
| Feature | Details |
|---|---|
| Who can join | Active Pag-IBIG members (employed, self-employed, OFW, voluntary); Pag-IBIG pensioners; SSS/GSIS pensioners |
| Minimum savings | ₱500 per remittance |
| Maximum | No limit (large one-time deposits over a set amount may need to be paid by check or at a branch) |
| Term | 5 years |
| Dividends | Tax-free |
| Payout options | Compounded until maturity, or annual payout to a bank account |
| Safety | Government-guaranteed under RA 9679 |
How much can you earn? Two examples
These examples assume a 7.12% dividend every year, which is not guaranteed.
Example 1: ₱1,000 every month for 5 years - Total deposits: ₱60,000 - Approximate value at maturity (compounded): ₱71,800 - Approximate earnings: ₱11,800, all tax-free
Example 2: ₱100,000 one-time deposit - Compounded for 5 years: about ₱141,000 - Annual payout option: about ₱7,120 a year credited to your bank account, with the ₱100,000 returned at maturity
Compounding wins if you don't need the income. Annual payout suits retirees who want regular cash.
Compounded vs annual payout
- Compounded (default): dividends are added to your balance each year and earn dividends themselves. You get everything at maturity. Best for long-term goals.
- Annual payout: dividends are credited yearly to your nominated bank account. Your principal doesn't grow, but you get predictable income.
You choose when you open the account. Annual payout usually requires a bank account in your name.
How to open an MP2 account online
- Make sure your regular Pag-IBIG membership is active and you know your Pag-IBIG MID number. If you don't have one, register online first.
- Go to Virtual Pag-IBIG on the Pag-IBIG Fund website and choose the MP2 enrollment option.
- Fill in your details, choose compounded or annual payout, and submit.
- Save your MP2 account number; it is different from your regular MID number.
- Make your first remittance of at least ₱500.
How to pay your MP2
- Virtual Pag-IBIG online payment
- E-wallets and accredited payment partners (for example GCash and Maya, through their bill payment options)
- Accredited banks and payment centers
- Pag-IBIG branches
- Salary deduction, if your employer offers it
Always use your MP2 account number, not your regular MID, so the money posts to the right account. Check postings in Virtual Pag-IBIG.
Withdrawing at maturity and early withdrawal
At the end of 5 years, you can claim your savings plus dividends online or at a branch, or open a new MP2 account to keep saving.
Early withdrawal is allowed only for specific reasons, such as:
- total disability or insanity
- critical illness of the member or an immediate family member
- separation from work, retirement or permanent departure from the country
- death of the member (claimed by heirs)
Dividends may be reduced on early withdrawal, so treat MP2 as money you won't need for five years. Keep your emergency fund in a bank or digital bank account instead.
Is MP2 right for you?
MP2 works well for:
- 5-year goals such as a house down payment, a child's education fund or a business capital fund.
- Conservative savers who want better than bank rates without stock market swings.
- Part of a retirement plan alongside your SSS pension.
It is less suitable for:
- Emergency money, because withdrawals are restricted.
- Very long-term growth of 15 years or more, where a diversified mix with index funds may grow faster but with more risk.
If you're deciding where to put a smaller amount, compare MP2 with other options in where to invest ₱10,000.
Frequently asked questions
How much will I earn in MP2 if I save ₱1,000 a month?
Saving ₱1,000 every month for 5 years (₱60,000 total) would grow to roughly ₱71,800 if dividends averaged 7.12% a year and were compounded. Actual dividends depend on the rates Pag-IBIG declares each year and on when your deposits are posted.
Is MP2 better than a bank time deposit?
MP2 has historically paid much more than bank time deposits, and its dividends are tax-free, while bank interest is subject to 20% final tax. The trade-off is liquidity: MP2 locks your money for 5 years, with early withdrawal allowed only for specific reasons.
Can I withdraw my MP2 before 5 years?
Yes, but only for specified reasons such as total disability, serious illness of the member or an immediate family member, separation from work, permanent departure from the country, death of the member, or under other conditions Pag-IBIG allows. Early withdrawal can result in reduced dividends, so check current rules before you open an account.
Can I have more than one MP2 account?
Yes. You can open several MP2 accounts, for example one for each goal such as a child's education or a house down payment. Each account has its own 5-year term.
Is MP2 open to OFWs and self-employed members?
Yes. Any active Pag-IBIG member, including OFWs, self-employed and voluntary members, can open MP2. Pag-IBIG pensioners and retirees who are pensioners of SSS or GSIS may also open accounts even without active regular membership.
Sources
Figures checked against these official and primary sources on October 4, 2026. Government rates and promos change, so confirm on the agency's site before you act.
- Philippine Information Agency: Pag-IBIG yields record ₱64B in dividends for 2025 (6.62% regular, 7.12% MP2)
- Pag-IBIG Fund: MP2 Savings program and Virtual Pag-IBIG
- Republic Act No. 9679, Home Development Mutual Fund Law of 2009
General information, not personal financial, tax or legal advice. See our editorial standards and disclaimer. Found an outdated figure? Email support@success.ph.