EXPLAINER: How does the Pag-IBIG MP2 Savings Program work?
Pag-IBIG Fund officially announced a return rate of 7.12% for MP2 savings in 2025.
The agency revealed its 2025 return rate for its Modified Pag-IBIG II Savings Program on Friday, Feb. 27, along with a 6.62% dividend rate for regular savings.
"This milestone is the result of sound fiscal management and the continued trust of our members. We remain focused on growing their savings and securing their financial future," Pag-IBIG Fund CEO Marilene C. Acosta said.
This came after Pag-IBIG Fund announced that its members collectively saved P160.41 billion in 2025—a 21% increase from 2024 and the highest amount ever recorded in its 45-year history. The record savings, according to the agency, were mostly driven by voluntary savings under the MP2 savings program that reached P83.51 billion last year.
The Pag-IBIG MP2 Savings Program, which has a five-year maturity and is government-guaranteed, is designed for active Pag-IBIG Fund members who want to save on top of their Pag-IBIG Regular Savings.
Here's what you need to know about it.
How the MP2 Savings Program works
As mandated by the Pag-IBIG Fund charter, the agency invests at least 70% of its investible funds in housing. Investments are also made in government securities and corporate bonds. Every year, the dividends and returns from these investments are automatically credited to members' MP2 Savings accounts.
Therefore, the more a member saves, the higher the returns they receive.
Take note that after your MP2 Savings reaches maturity after five years, it will stop earning dividends under the MP2 Savings rate and switch to earning the dividend rate under Pag-IBIG Regular Savings. After two years, your MP2 Savings will stop earning any dividends.
Active Pag-IBIG members can withdraw their MP2 savings before the maturity date under certain conditions, namely: total disability or insanity, termination from employment due to health reasons, retirement, permanent migration to another country, unemployment due to layoff or company closure, OFW repatriation from the host country, death of the MP2 account holder (in which case, the MP Savings will be received by the member's beneficiaries), and critical illness of either the MP2 account holder or an immediate family member.
Retirees and pensioners also have the option of withdrawing their MP2 Savings prematurely.
There is no limit to the amount you can save. If you wish to save an amount over P500,000, you will just need to issue a personal or manager's check.
You may claim your dividends either online, through the Virtual Pag-IBIG platform, or at the nearest Pag-IBIG Fund branch.
How to open an account
To open an account, you would need to have the following ready: Pag-IBIG membership ID number, a photocopy or scanned copy of one valid ID, a selfie photo, a photocopy or scanned copy of proof of income or source of funds, a Philippine passport (for former natural-born Filipinos), a certificate of reacquisition/retention of Philippine citizenship, if applicable.
Online enrollment
1. Go to the virtual Pag-IBIG page.
2. Click Be A Member and then click Apply for MP2.
3. The system will take you through the items you need to accomplish or tick. Fill in your Pag-IBIG details and click Submit.
4. Enter your desired savings amount, preferred dividend payout, mode of payment, and source of funds.
5. Upon completion of enrollment, you should receive a 12-digit MP2 savings account number and start saving.
Manual enrollment
1. At any Pag-IBIG branch, fill out an MP2 enrollment form with your personal information, as well as your Pag-IBIG membership ID number. Be ready to submit a photocopy of a valid ID and a copy of proof of income or source of funds.
2. You will be asked to indicate your monthly contribution amount, as well as your preferred payment mode and dividend payout.
To start saving, you may top up your savings online through the Virtual Pag-IBIG platform, GCash, Maya, or ECPay; at any Pag-IBIG branch; or over-the-counter through MP2 partners SM Business Services, Asia United Bank, Bayad Online, and ML Kwarta Padala. Employees can save through salary deduction.
Remember that the mode you choose at enrollment, whether online or manual, cannot be changed throughout the five-year term of your MP2 Savings. If you decide you want a different dividend payout mode after your enrollment is finalized, you will have to open another MP2 Savings account.
For more modified guidelines of the MP2 Savings Program, read here.
