Passive income through Pag-ibig MP2: How to start saving

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Do you know there’s a chance to earn passive income through Pag-ibig or the Home Development Mutual Fund (HDMF)? It’s called MP2 or modified Pag-ibig savings program.

When MP2 was launched in 2010, it’s been posting higher and tax-free dividend compared to time deposit and savings account. And this year, the dividend rate is announced at 7.23%.

Pag-ibig MP2

Every employee has to have a contribution to Pag-ibig regular savings. It is mandatory. Whatever you’ve put in becomes the basis on how much you can loan when you’re planning to build a house or purchase real estate. It does earn some dividends.

But if you want higher dividends, MP2 is what might suit you. It is purely voluntary so actually you have to open it on top of your regular savings.

How much dividends can I earn?

Dividend rate is usually declared around the first quarter of each year. It varies depending on the performance of the fund. It’s published on the website and announced in the news along with the company’s financial reports. The amount can vary depending on its actual income.

Related: How to make the most out of your Pag-IBIG MP2 earnings
Four Pag-ibig MP2 strategies you need to know

Latest MP2 dividends

So how much is Pag-IBIG MP2 earning since 2010?

In 2021, Pag-IBIG announced its latest MP2 dividend is 6.12%. That means it has an average dividend rate of 7.26% for the past five years. (We use five years since it is the maturity of the account.) See below the rest of the dividends since 2010. The 2010 rate is based from the financial statement of Pag-IBIG, the rest are from the Esquire, and company announcement as reported in the media.

YearMP2 dividend

Pag-ibig MP2 versus time deposit vs. regular Pag-ibig

Here’s the comparison between time deposit interest, Pag-ibig (mandatory) regular savings dividends and MP2 dividends since 2010.

As you can see, it actually beats both time deposit and mandatory savings consistently every year.

The table below shows the average returns until 2018. Time deposit rate is based on BSP report, while Pag-IBIG rates are culled from Pag-IBIG financial statements, Esquire, and other online sources.

YearTime depositPag-ibigMP2

How does Pag-ibig earn?

Where do they invest? Actually, Pag-ibig is a mutual fund where people’s contributions are invested in many assets. According to the law, 70% are into financing housing loans.

Other sources of income are from its short term loans, sovereign securities (acquiring debts from the government), time deposits, and bonds from companies.

Are you eligible?

Anyone who is actively contributing to the mandatory savings is qualified. Exemptions have been granted to people who are no longer employed such as those who are former members with 24 monthly savings as long as they have a source of monthly income.

Benefits of Pag-ibig MP2?

These are the many advantages when you begin MP2 as source of passive income.

  • Earnings are tax-free.
  • It is guaranteed savings backed up by the government, so it’s ideal for conservative investors who want to have a safe place to invest and without capital loss.
  • There are no fees and charges, so your invested amount remains intact. It is unlike mutual funds where there are sales load.
  • Eligible members include those who are no longer actively employed but are still earning an income.
  • Dividends are historically higher than a savings account, time deposit, and the mandatory savings.
  • Dividends can be released to your bank or remain in the account to earn compounded growth.
  • Contributions are flexible. Because it is voluntary savings, you can invest however you want: monthly, quarterly, or annually. Unlike variable universal life (VUL) policy, you are not tied to a contract where you’re required to pay periodic premium.
  • The small capital requirement means that you can start even when you don’t have that much money.
  • There is no limit on how much you put up. This is perfect for those who have more to invest.
  • Account opening is easy as it’s like updating existing membership.
  • To pay is also convenient. Contributions are accepted at any branch or participating payment centers. Now, Pag-ibig has an online payment facility.
  • You can withdraw any time. Terms apply.
  • This is ideal savings vehicle for medium-term financial goals.
  • It can be a good way to diversify your portfolio and as a way to manage risks in your investments.
  • Update: You can now open an online account on the website.

Disadvantages of MP2

What are the risks associated with MP2 investing?

  • Lock-in period is set at 5 years.
  • No rollovers are available. After 5 years, your contributions would earn the same returns as the mandatory savings. Two years later, it would not earn anything.
  • If you wish to continue getting the benefits beyond five years, opening a new account is required.
  • Doing transactions may be inconvenient for those without any Pag-ibig branches nearby.
  • There is an opportunity cost when the earnings from MP2 are lower than other investment opportunities. For instance, some mutual funds and UITF funds have reported higher returns.
  • When account is closed before five years, those who opted to receive the dividends at the end of 5 years will only be entitled to get 50% of the dividend. Meanwhile, those who opted to receive dividends each year will only be able to get back their capital.

How can I enroll with MP2?

Drop by any Pag-ibig branch. Bring any valid identification card, the required initial amount, and bank account where you want dividends to be credited.

You can actually download the online enrollment form. Make sure though that you are already a member who contributed for at least 24 months and have been issued a membership number.

There’s also an online application here.

How much should I save?

You can start for as low as ₱500, but it’s really up to you. If you want to put up more, like maybe ₱1,000, you can.

Is there limit to how much I can save with MP2?

You can go as high as you want. There is actually no limit on how much you can invest. Bear in mind that higher amounts may mean that you need do it in ways other than personally handing in cash. If the amount is at least half a million, you may need to issue a check.

How often should I save?

It’s your choice how frequently you’d save for your MP2. The program accepts regular payment such as a monthly contribution that is if you prefer so. You may also opt to do it one-time. Either way, your savings can be eligible to receive the yearly dividends.

Where can I get my dividends?

There are two ways in getting your dividends: compounded or annually. In compounded, you wait until the lock-in period of 5 years. In annually, you get the dividends each year straight to your settlement account.

Where can I pay my contributions?

Contributions can be deducted from your salary subject to your arrangement with employer. They may be accepted at any Pag-ibig branches or any of the participating payment centers: 7-11 stores, Bayad Centers, SM Business Centers, M. Lhuillier, and ECPay.

For OFWs and people who are located abroad, you can also remit through international partners such sa iRemit, via PayPilipinas, Philippine National Bank (PNB) and Asia United Bank (AUB).

For a more complete and updated list, you may check this online resource.

Can I open more than one MP2 savings account?

Yes. Multiple accounts are permitted. It might be an option for you if you’re saving for different financial goals, and you don’t want to mix up your funds for each of them.

When can I withdraw my money?

You may withdraw your money at the end of the lock-in period, which is 5 years. Certain situations allow you to close it within 5 years such as total disability, medical-related work separation, unemployment due to business closure or retrenchment, retirement, serious illnesses, migration abroad, unexpected demise, etc.

Should you close the account before the period on grounds not covered above, there’s going to be consequences. For compounded accounts, you’re only entitled to 50% of the dividends and those in annual accounts will only get their total savings minus all dividends.

If I don’t withdraw, what happens after 5 years?

If you keep your savings with Pag-ibig beyond the lock-in period, they will no longer earn the same dividend and instead will revert to the same earnings as the mandatory regular savings. After two years, if no withdrawal is done, they don’t earn any gains anymore.

Should you wish to continue enjoying the benefits, you can open a new MP2 account again.

How much can you earn from Pag-ibig MP2?

Finally, how much can you earn from putting your savings on MP2? Well, we look at the dividends given since inception. When you look at the table below, please take note of the following considerations.

  • The table reflects MP2 rollover strategy, which is to close a MP2 account on maturity, opening a new one, and reinvesting everything to the new account. Click the link for more information.
  • Data is only an estimate based on dividend rate announced since 2010. Actual results may vary.
  • The returns are past performance. They do not guarantee similar returns in the future.
  • A capital of ₱1 million is the initial placement.

Looking at the data, MP2 gives a compounded annual growth rate (CAGR) of 5.97%.



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99 thoughts on “Passive income through Pag-ibig MP2: How to start saving”

  1. Hello. I just enrolled for the MPII program online and would like to ask if I can already start paying for it online (GCash) or do I need to hand in my form to a Pag Ibig Office? Thank you

    1. Hi, Katrina. Good question. The first payment is to be made at the branch. Succeeding payments can be done via online and bayad centers.

      Update: Some users report that accounts enrolled online need not pay through the office.

    2. Hello, I just tried the link to enroll online but it’s not working. Is there any possible way or other sites I could go into just to enroll?
      I work from home and earning inconsistently but my earnings never go down to 15k/month, am I still eligible for MP2? (I have been contributing to Pag-Ibig since 2010, irregularly)

      Thank you!

      1. Hi Jenny.

        1. Apologies. Issues on signing up online is beyond our scope. Please consider checking with Pag-ibig. And there’s no other alternative sign up process that we know of.
        2. MP2 requires at least 24 months contribution on the mandatory membership.


        1. Hello.ask ko lng po about the MP2 program,my husband has been enrolled in that program last he just had 2 mos.contributed & till now,d pa niya nahuhulugan ulit,can he still continue po bh sa paghuhulog po even hw many wlang hulog?

  2. Hello, I want to open an account for MP2 but not or never had any account in Pag-ibig. What is the best thing to do?

    Thank you

    1. Hi, Janette. You need to have a membership first before you can open an MP2 account. Check their online registration or after the quarantine, you can visit any Pag-ibig branches.

  3. Hi. I had my MP2 Savings before and now I have a new employer. What is the process so that I can continue saving? Do I still have to sign any form?

    1. Hi, Hanna. If you’ve been paying through your employer, check with Pag-ibig as well as your company’s HR on how to continue saving through salary deduction. However, if you’ve been saving in MP2 on your own, there is no need to update your MP2 account. Just keep on saving up the same way.

  4. Hi Pesolab,

    Can I apply for MP2 via my employer? Also, what if on the 3rd year I increase my contributions, will that that extend the 5 years of earning dividend or will it still be within the 5 years earning dividends from the start of enrollment?

    1. Hi, Janus. Here are the answers to your two questions.
      1.) You may check with your employer whether you can apply through them. Some have been saving up through salary deduction, others went straight to Pag-ibig to open the account.
      2.) When you increase your savings on the 3rd year (or any year for that matter), your account would still mature within the five years. The five-year maturity of the account stays regardless if you increase or decrease your savings.

    1. Hi, Yvette. You may pay through any Pag-ibig branch, bayad centers, or online. Check their website for their payment options.

  5. Hi. Can I increase my contribution by paying online if I initially chose to pay my contribution through salary deduction?

  6. How can i recover my pag-ibig membership number..i already forgot my number though before i was working then my employer deducted me for my contribution..if i was not mistaken it was way back 2013 when i last paid my contribution

  7. Hi, I start paying MP2 even if my P1 is empty for some employer problem. Does saving/paying MP2 is legit as long as we had P1 Number and registered in MP2?

    1. Hi, Giovanni. Please consider dropping by any Pag-ibig branch for your questions. What I know is that P1 membership is necessary before opening an account for MP2.

  8. Hi i Just enrolled MP2 where can I pay my 1st payment, Can I change my monthly savings?

    1. Hi, Yvette. You can increase or decrease the amount (at least the minimum of half a thousand pesos).

  9. Hi! Im just a new member of pag-ibig a month ago, is it okey to pay the equivalent of 24months contribution so to qualify me to start my first contribution on my pag-ibig MP11.

      1. what if nawalan ka work within the 5 yrs period…technically wlang employer na mgfifinance ng mp1 mo..Will it affect my mp2 contributions eligibility?

        1. Hi, May Ann. You just need to fulfill the basic requirements so that you can be eligible.

  10. Hi. I tried to register online and accidentally submitted the form without realizing that the mode of payment depends on your chosen source of funds (I chose employment income instead of savings/deposits cause I thought it was asking my source of income, and when I opened the PDF of my submitted form, it has a space for my signature to allow my employer to deduct the MP2 savings from my salary).
    Can I still change it in any Pag-Ibig branch? And what MOP should I choose between OTC and Any Pag-Ibig accredited partners so I can pay through 7/11 or bayad centers in the future? Thank you.

    1. Hi Mae,

      Though you selected Employment as your source of income, salary deduction is optional – you can check out the enrollment form under the FOR LOCALLY-EMPLOYED MEMBERS box – Authority to Deduct says its just Optional. Hope this helps! 🙂

      1. Does it mean I can pay voluntarily without asking my employer to deduct for my salary and that will still form part of my contribution?

  11. I tried to apply for MP2 online but it appears I have an existing account. Can I retrieve my account number through online?

    1. Hi, Thea. You may call or email them. The best way would be to drop by any of their offices so you can retrieve your account number.

    2. Hi po! Nag apply me ng mp2 last 2015 then 500pesos p lng ung nahulog ko, may makukuha pa po kaya me this year?

  12. Hi good morning how to view my previous contributions since i stopped work and have a self-employed business?

    1. Hi, Renato. Contact them through phone or email or please consider visiting any of their branches.

  13. These two cons can be eliminated. You can now deposit your MP2 contributions via GCash or PayMaya. You can open and register online without the need to go to any PAG-IBIG office. You will only need to go their office if you want to activate your Virtual PAG-IBIG. I registered and activated my Virtual Pag-ibig account and I can monitor my deposits in MP2 there.

    1. Hi, Jai. Thanks for this updates. Paying on the website through credit card uses PayMaya as gateway, and there are fees involved.

  14. Does the 5 year lock in require a total of 60 monthly contributions? What happens if you skipped a month/s to pay MP2?

  15. Public school teacher po ako ng 15yrs at may kinakaltasan ng pagibig ang aking payslip eversince im working..may 100 po yung unang kaltas at 200 naman po ang additional?tanung ko lng po..iba pa po ba ito sa mp2?gusto ko po kcing magapply ng mutual funds sa inyo pagibig..pwede po b ako mag open ng sarili kong account na 1000 monthly ko bbbyaran o huhulugan sa pag-ibig thru gcash or any bayad center?kelan po ba ko pede magstart mg open ng account

  16. Hi, i am just wondering, what if i die in the middle of that 5 years (but i did one time deposit) what will happen to my money and its dividend?

    1. Hi Shalom. Whatever amount that is due to you can be requested to be released to your heirs in accordance to our estate laws.

  17. Hi, Good day. What if you only contributed for 45 months then after that you missed many months of remittance to MP2 savings ( like the remaining 15 months.)
    Second question there are months that you have not remitted like you only remitted A total of 40 month and missed 20 months?
    Thank you.

      1. Hi I have saved 6 months up until June 2020, I missed Jul 2020 up to now, Can I still send for those missed months? Is my MP2 savings still active?

        1. Hi, you can save any amount for as long as it is least 500 and however frequently you like. Check either the nearest branch or online account to see if it is still active.

        2. Good PM, Can i pay a big amount in my first month then pay 1000 per month for 5 years. I’m planning to enroll 1 time payment but want to add atleast 1k every month in my savings

  18. Hi Persolab! I opened my MPII account a year ago, but didn’t have the chance to put money in. Now I want to fund it. My question is, is my account still active now even though I havent out in money? and if I put money now, can I do it online? Thanks.

        1. Hi, this is voluntary. Just make sure that you’re able to deposit at least 500 and there is no maximum amount.

  19. Hello! If I opted to contribute 2000/month, can I pay the 24k/yr once and is already good for 1 year payment?

  20. Hi,
    I have three questions:
    1.) What is the best way to monitor my MP2 contributions? I prefer online checking rather than going to pag-ibig office. How?

    2.) Does it is still good to contribute today during pandemic which resulted economic downturn?

    3.) If this pandemic continuous is there any projections/estimates of MP2 dividends?

    1. Hi. 1. You can check their website, there is an online account you can register. 2. It depends on your risk appetite, financial goals, etc. 3. Dividends are not predictable. You may check this website to see the rates since 2010. Thanks.

  21. Hi there. First off, wow! Your site is very helpful and easy to navigate. So kudos to you! Second, a couple of questions from an OFW; how can I open and contribute while I am in Dubai? Can I withdraw after the lock-in period at any branch in the Philippines only or this is available abroad as well via the aforementioned bayad centers. Also can they automatically transfer to my bank account after the lock-in period? Lastly, I worked in an MNC while I was in the Philippines. I forgot if I contributed to Pag-ibig. Was it mandatory like SSS? If yes, then that means I am already a member and can therefore open an MP2 account. Right? I apologize if the last question is kind of obvious but I did forget! Thank you so much. I am so glad I stumbled on your site.

    1. Hi Jaye. Thanks for the kind words.
      1. You may check their website for online registration.
      2. You have to visit any branch to file a claim and submit valid IDs.
      3. Required at least 24 months worth of contribution.

  22. Hi, I have a question – I have tried accessing the online enrollment for MP2. However when I saw it shows an incorrect employer. Though I know that its updated because I have a recent Salary load and being deducted automatically by my current employer. Is there any difference applying for MP2 online or is it best to just drop by a pagibig branch

  23. Hi! I saw in one of your posts (not sure what it was, been reading through a lot lol) that there was a waiting time of a month or so before you can actually collect/receive your MP2 savings after requesting to withdraw? Is that still accurate? Correct me if I misunderstood this. Thanks! 🙂

    1. Hi Eu. That must’ve been one of the comments of the users here, so please consider it may not be accurate. Check with Pag-ibig just to be sure.

  24. Good day! I just want to know if we can request for quarterly dividend instead of the annual. Is it possible?
    I am referring to the onetime investment and 5 years lock in on the MP2.
    Thank you.

  25. Hi, I am a first year college student this school year and I am 18 years old. Does Pag-Ibig accept students like me? I want to save up for the future and I am interested in mp2 as my first investment since it is run by the government. I am not a member of Pag-Ibig yet but I am planning to do so.

  26. Hi,

    When did the MP2 starts? Is there anyone here withdraw after 5 years? How did you get the money? How long the process will it take?

  27. Hello, how am I able to apply for MP2 if I am still a student? I’m 19 years old, btw. and no job experiences.

  28. Hi po, can I enroll online and invest but I will be use the one time payment without going their office? Can I use ING bank to pay the one time payment or GCash? Thank you

    1. Hi Ej. According to some investors, no need to drop by the office on initial payment even when enrolling online. Please check with Pag-ibig for more updated rules.

  29. Kudos to you for patiently answering mostly redundant questions even though most concerns have technically been addressed in the article. Reading comprehension is an asset to smart personal finance.

  30. hi what is the proper way in paying mp2 like thru gcash i paid twice in mp2 already but i doubt it if its correct what is the proper entry for covered period from and covered period to ? my mp2 is 5year maturity and i paid monthly.
    thank you very much hope you can help me.

  31. i have a current housing loan in pag ibig. my regular savings will reach its 240 monthly contributions by july this year. can i take the savings out and put it in my MP2 even if i have a current hosuing loan?

  32. Hi, I’m about to enroll for Pag-Ibig MP2 Program. I want to know if I fund my MP2 account with PhP500 for the 1st month, is it possible to fund my MP2 account with PhP for the 2nd month? And then PhP500 for the 3rd month, and then any amount equal to or greater than PhP500 for the succeeding months up to 12 months. Is this kind of funding the MP2 is allowed?

  33. Hello. Thank you so much for this informative post. You mentioned that you need to have a bank account where you want dividends to be credited. Can i use the pagibig loyalty card powered by Union bank as the bank account since i do not have any other personal bank account? Thanks in advance.

  34. Hi! I am a new member and still not contributing to MP1. I don t have a proper employment – just a sideline. Am I eligible to save at mp2?

  35. Hello. I realized a major disadvantage of Pagibig mp2. It does not get capital appreciation. It is essentially a Savings account with a higher although randomized annual interest rate compared to a time deposit. It’s biggest disadvantage against, say, investing in stocks is that you don’t actually own anything that you can sell for a higher value in the future.

  36. Good Day po. Thanks for your article, very comprehensive and helpful po. I’m 23 and mag open palang po sana ako ng MP2. Ask ko lang po kung kailan po ideal na mag start, January po ba or anytime, wala naman po factor kung kailan? Looking forward to hearing from you po. Thank you.

  37. hi. i am an ofw kakastart ko lang po sa register ng mp2 but i chose annually muna. Mandatory po ba na kunin ko ung pera after 1 year since annually ung kinuha ko po? or pwedeng hindi? thank you

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