How much has Pag-ibig MP2 been earning since 2010?

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If someone did invest the moment the program started in 2010, how much would their savings be in the present? Pag-ibig has already announced that the dividend rate for 2019 is at 7.23%. What does this rate mean and how has MP2 grown since 2010, the year that the program first established? These are the questions that I’d like to explore in this article.

Previous articles talked about how you can start investing and earn passive income from MP2, a voluntary savings program available through the government corporation Pag-IBIG. There are also articles that talked about MP2 strategies with example financial goals that you can attach with your investment as well as a discussion on how you make the most out of MP2 savings program.

Pagibig MP2 historical dividend rates

Right off the bat, a record of the past dividend rates declared by Pag-IBIG is required. This is so because these rates are going to be used later on when calculating the growth of money through the years.

MP2 was launched January 2010. Its first dividend, according to company’s financial statement, on that year was 5.50%. Skipping to 2019, the rate has increased to 7.23%. The highest that’s recorded so far was back in 2017 at 8.11%. Meanwhile, the regular mandatory Pag-IBIG membership gave 4.11% in 2010, with the highest recorded in 2017 at 7.61%.

Also important is to consider are alternative passive income options offered in the market of similar conservative profile, and these would include bank deposit products such as savings account and time deposit. Each of these two accounts earn interest, which is credited to the account every quarter, that is subject to a tax of 20%. By comparison, MP2 earnings are tax-exempt. But all three of them share the same guarantee from capital loss. Time deposit and savings account are insured by up to half a million pesos by the Philippine Deposit Insurance Corporation (PDIC) while your entire capital invested into MP2 is government-backed.

See below the comparison of time deposit, regular Pag-IBIG membership, and MP2 from 2010 to 2019. The time deposit rates are culled from 1-year average time deposit rates from Bangko Sentral ng Pilipinas (BSP) report. The rest of the data is garnered from the company’s website as cited above and the Esquire article.


The last row of data on average annual interest is striking. It is clear that MP2 has the highest average return on investment (ROI) at 5.96% compared to time deposit (2.15%) and regular membership (5.37%).

MP2 earnings 2010 to 2019

How does your actual money grow? Seeing the historical rates is one thing, it is another to check how your savings would grow that corresponds to the yearly dividends paid out for several years.

To answer this question, three accounts are imagined to have been opened in 2010. One account has a one-time starting capital of ₱1,000,000. The other one adopts a different strategy, an annual investment of ₱100,000 is made. The last account has a monthly investment of ₱1,000. If you’re interested, you can also read the comparison between one-time and yearly MP2 investment.

Again, it is worth repeating that these are all historical data. The dividends that you see here do not guarantee or reflect the future dividends that the program is going to give out. Also, it is important to remember that MP2 has a lock-in period of 5 years and it does not allow renewal. For all the scenarios it is assumed that at the end of the fifth year, the account is closed, a new one is opened, and the entire amount is reinvested. This strategy is also called MP2 rollover.

One-time ₱1M invested in MP2

Let’s think of an account that was started at the beginning of 2010 for an initial capital of ₱1,000,000. How much would the account be worth when the money is withdrawn in 2019? As you can see from the table below, the total dividend would have been ₱782,335. The cumulative increase of the account, which is how much your money would’ve grown, is 78.23%.

Total1,000,000782,335 1,782,335

But how does it stack up against savings account and time deposit over the same number of years? Here, we’re going to use 0.25% interest for the former and the varying rates for the latter according to the BSP report. The earnings will also be tax-deducted. Just to add, both bank accounts are assumed to compound.

YEARCapitalMP2Time DepositSavings
2010 1,000,000 1,055,000 1,026,116 1,002,002
20111,103,847 1,050,923 1,004,007
20121,155,396 1,072,911 1,006,017
20131,208,429 1,087,759 1,008,030
20141,264,983 1,098,029 1,010,048
20151,332,407 1,109,927 1,012,069
20161,431,405 1,123,611 1,014,095
20171,547,492 1,139,016 1,016,125
20181,662,161 1,158,927 1,018,158
20191,782,335 1,186,814 1,020,196
Total 1,000,000 1,782,335 1,186,814 1,020,196

From the table below, you can see that the higher and tax-free dividend rate are an advantage that it has over the other two accounts. It nets the highest return (₱1,782,335, an increase of 78.23%) from 2010 to 2019 than time deposit (₱1,186,814 an increase of 18.68%) and savings account (₱1,020,196, an increase of 2%).

Annual ₱100k invested in MP2

Now, let’s check the growth on the second MP2 account where a yearly capital of ₱100,000 is invested. Just like the earlier scenario, the goal is to answer the question on how much it would have increased over the years when it was started the year that the savings program was established in 2010.

The data as indicated in the table shows that out of the total accumulated amount of ₱1 million, the total dividend is ₱431,893. That brings the accumulated amount on the account to ₱1,431,983. This also means that the cumulative increase is 43%.

YearSavingsMP2 rateDividendTotal
2010100,000 5.50%5,500 105,500
2011200,000 4.63%9,515 215,015
2012300,000 4.67%14,711 329,726
2013400,000 4.59%19,724 449,450
2014500,000 4.68%25,714 575,165
2015600,000 5.33%35,986 711,151
2016700,000 7.43%60,269 871,419
2017800,000 8.11%78,782 1,050,201
2018900,000 7.41%85,230 1,235,431
20191,000,000 7.23%96,552 1,431,983
Total1,000,000 5.96%431,983 1,431,983

And similar to the previous scenario, let’s compare this to what they would be like if the capital was into the bank deposit accounts. Not unexpectedly, saving annually into MP2 (₱1,431,983) still nets the highest compared to these bank products from the banks. Time deposits grows to ₱1,094,236 (a cumulative gain of 9.42%) while savings account to ₱1,011,075 (a cumulative gain of 11%).

YearSavingsMP2Time depositSavings
2010100,000 105,500 102,612 100,200
2011200,000 215,015 207,510 200,601
2012300,000 329,726 313,944 301,203
2013400,000 449,450 419,672 402,006
2014500,000 575,165 524,579 503,010
2015600,000 711,151 631,347 604,217
2016700,000 871,419 740,363 705,627
2017800,000 1,050,201 851,884 807,239
2018900,000 1,235,431 968,525 909,055
20191,000,000 1,431,983 1,094,236 1,011,075
Total1,000,000 1,431,983 1,094,236 1,011,075

Monthly ₱1k invested in MP2

For the last scenario, the account holder invests ₱1,000 monthly. As you can see, the total capital that is saved and invested is going to ₱120k. With the past dividend rates, the total accumulated dividends would be ₱49,274 for a total of ₱169,274. That’s a gain of 56.73%.

201012,000 5.50%364 12,364
201124,000 4.63%1,254 25,254
201236,000 4.67%2,766 38,766
201348,000 4.59%4,886 52,886
201460,000 4.68%7,724 67,724
201572,000 5.33%11,775 83,775
201684,000 7.43%18,710 102,710
201796,000 8.11%27,897 123,897
2018108,000 7.41%37,889 145,889
2019120,000 7.23%49,274 169,274

And finally, let’s compare that to time deposits and savings account. (In time deposit computation, it is assumed that the account’s starting capital and balance to earn interest is ₱1k, and the interest is credited quarterly.)

YearSavingsMP2Time DepositSavings Account
2010 12,000 12,364 12,195 12,015
2011 24,000 25,254 24,671 24,054
2012 36,000 38,766 37,344 36,117
2013 48,000 52,886 49,964 48,205
2014 60,000 67,724 62,506 60,316
2015 72,000 83,775 75,265 72,452
2016 84,000 102,710 88,285 84,612
2017 96,000 123,897 101,598 96,796
2018 108,000 145,889 115,505 109,005
2019 120,000 169,274 130,464 121,238
Total120,000169,274 130,464 121,238


It is one thing to know the dividend rate issued by MP2 as a percentage of the capital, and yet it is even better to know the growth of money when invested into it over the years. This article tracks such growth in two imaginary historical accounts: one with ₱1 million and another with a yearly investment of ₱100,000 since 2010.

This savings program is then compared to other bank products of similar conservative characteristic: time deposit and savings account. They are considered conservative because just like MP2 where capital is guaranteed by the state, these two bank deposit accounts offer a cushion risks as the capital is insured up to ₱500k by PDIC.

Historically, the higher and tax-exempt dividend from MP2 beats time deposit and savings account, offering better ROI in either one-time or periodic investment scenarios.