What is the Modified Pag-IBIG 2 (MP2) Savings?
The Modified Pag-IBIG II (MP2) Savings Program is a voluntary, government-guaranteed savings program offered by Pag-IBIG Fund to all active Pag-IBIG members. It delivers significantly higher dividend rates than regular savings accounts or time deposits, with a 5-year maturity period.
Dividends are tax-free, computed annually using a time-weighted formula, and credited to your account once a year — usually in Q1 of the following year. At maturity, you receive your total principal plus all accumulated dividends in a lump sum.
💡 2025 Dividend Rate: The official MP2 dividend rate for 2025 was 7.12% — one of the highest in recent years. Historical rates: 7.12% (2025), 7.10% (2024), 7.05% (2023), 7.03% (2022).
What are the key features of MP2?
- Tax-free dividends — dividends are not subject to withholding tax
- Government-guaranteed — your principal and dividends are backed by the Republic of the Philippines
- 5-year maturity — your savings mature after 5 years from account opening
- Minimum ₱500 per contribution; no maximum limit
- Flexible contributions — monthly, quarterly, or one-time lump sums
- Two dividend modes — compound (reinvested annually) or annual payout (withdrawn each year)
- Dividend rates 6–7.5% historically, vs 0.25–2% for typical savings accounts
How MP2 Dividends Are Computed
MP2 uses a time-weighted Average Monthly Balance (AMB) model. The core formula is:
D = C × R × (M / 12)
Where: D = dividend earned, C = contribution amount, R = annual rate (decimal), M = months remaining in the year when contributed (Jan = 12, Feb = 11 … Dec = 1).
Your total annual dividend is the sum of dividends from each contribution. In compound mode, dividends are reinvested each year, growing your base. In annual payout mode, dividends are withdrawn and only your principal + new contributions carry forward.
Frequently Asked Questions
Who can save in the MP2 Savings Program?
Any active Pag-IBIG Fund member can open an MP2 account — employed, self-employed, OFW, or voluntarily contributing members. You must have an existing regular Pag-IBIG savings account first.
How can I open an MP2 Savings account?
You can open an MP2 account online through the Virtual Pag-IBIG portal (pagibigfundservices.com), via the Pag-IBIG mobile app, or by visiting any Pag-IBIG branch. You'll need your MID number and a registered email address.
Is there a minimum or maximum savings amount?
The minimum contribution is ₱500 per transaction. There is no maximum — you can deposit as much as you want. Many investors make large lump-sum deposits at the start of the year to maximize the time-weighted dividend earning period.
When can I receive my MP2 dividends?
Dividends are declared and credited annually, usually in Q1 of the following year. You can choose to receive them yearly (annual payout mode) or have them automatically reinvested for compounding. At the 5-year maturity, you receive everything in a lump sum.
Can I withdraw before the 5-year maturity?
Early withdrawal is allowed only under specific conditions: total disability, critical illness, retirement, separation from service, or death. Voluntary early withdrawals may result in forfeiture of some dividends. Keep your MP2 for the full 5 years to maximize returns.
What happens if I don't claim after maturity?
If unclaimed, your MP2 account continues to earn dividends for up to 2 additional years post-maturity. After that, unclaimed funds are transferred to the Pag-IBIG escrow account. Always claim or renew your account at maturity to avoid losing access to earnings.
Can I open more than one MP2 account?
Yes, you can open multiple MP2 accounts. Each has its own 5-year maturity and separate dividend computation. A popular strategy is a “maturity ladder” — opening a new account each year so you have one maturing annually after Year 5.
How can I claim my MP2 savings at maturity?
Log in to Virtual Pag-IBIG and submit a withdrawal request online, or visit any Pag-IBIG branch. Required documents: withdrawal form, valid government ID, and your Pag-IBIG MID. Processing typically takes 2–5 business days.
MP2 vs Time Deposit — which is better?
MP2 generally offers higher rates (7%+) versus typical time deposit rates (2–4%) in the Philippines, and MP2 dividends are tax-free. However, MP2 has a 5-year lock-in period while time deposits offer more flexible tenors. For long-term savings, MP2 is typically more advantageous.
Is this calculator an official Pag-IBIG tool?
No — this is an independent projection tool built by BunnyWise for educational purposes. Results are estimates based on the AMB formula used by Pag-IBIG. Actual dividends depend on the official rate declared annually by Pag-IBIG Fund. This tool is not affiliated with Pag-IBIG Fund.
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