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How to Invest in Modified Pag-IBIG or MP2 Fund?

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Pag-IBIG offers more than just housing loans. It’s Modified Pag-IBIG or MP2 Fund is a tax-free voluntary savings program offered by the Philippine government to every existing Pag-IBIG 1 member (P1).

For people who are looking to save money and make it grow over time, this is one of the viable options that can be used by just about anyone, especially OFWs who work abroad for the sake of their families.

At the end of this article, you will have an idea if ever you decided to invest your money through the Modified Pag-IBIG or MP2 Fund.

What is Modified Pag-IBIG or MP2 Fund?

The MP2 program is Pag-IBIG’s way of helping ordinary people save and grow their money in an easy-to-understand investment program. MP2 is a tax-free voluntary program and solely a savings scheme designed to provide active PAG-IBIG 1 member (P1) with another savings option.

This program has a yield higher than those given under the Pag-IBIG 1 (P1) membership program because of the higher dividend rate.

As per the Pag-IBIG website, the MP2 fund is different from the P1 and Pag-IBIG Overseas Program (POP). It has a 5 year term and is renewable at the end of each term. The fund also provides higher return of investment (ROI) than savings and time deposit accounts in the banks.

For only Php500, you can already open an account.

See Sample Computation below: 

pag-ibig-mp2-savings-program

What are the benefits of MP2?

  1. Easy entry
  2. Annual dividend has higher interest rate than banks’ savings and time deposit accounts.
  3. Flexible dividend rates but always higher than dividend rate for Pag-IBIG I (P1) contributions.
  4. It is Tax-free
  5. If you miss your monthly deposit, the Total Accumulated Value (TAV) won’t be forfeited unlike in preneed plans, VULS, and insurances.
  6. Low risk conservative investment

What are the Limitations of Pag-IBIG MP2 Fund?

The MP2 Program also has limitations that need to follow.

  1. You will not be able to cash out your total accumulated value (TAV) anytime. You can only withdraw it if your meet the following conditions; a) when your fund reaches at the end of 5 years maturation period, b) become disabled c) separation from service due to health condition, and lastly d) death.
  2. You also can’t use your MP2 for loans at Pag-IBIG as it is meant to be exclusively a savings program. The MP2 program is solely a savings scheme for Pag-IBIG I members. You will have to use your active P1 membership to be eligible for Pag-IBIG fund’s lending programs.

pag-ibig-mp2-savings-program

How to Invest in MP2 Fund?

  1. You must be an active Pag-IBIG I member (P1) who contributes at least P100 per month
  2. Bring your HDMF Transaction Card or Pag-IBIG ID to your nearest Pag-IBIG branch, or give them your complete name and Pag-IBIG MID number.
  3. You must then fill up the MP2 registration form (Download the form here) and submit it along with requirements.
  4. At least Php500 needs to deposit for your MP2 monthly contribution on top of your regular P1 monthly membership fee.
  5. You will submit separate payment forms for your P1 and MP2 contribution to the cashier. The cashier will issue separate official receipts for your P1 and MP2 contributions.

Online Application for MP2 through E-Services

  1. Go to Pag-IBIG website, click on “E-Services”, and then click “MP2 Enrollment System”.
  2. Enter your Pag-IBIG MID number, Last Name, First Name, Date of Birth, and the CAPTCHA code displayed on screen. Then click on the “Submit”
  3. Type in the required information in the form online and the CAPTCHA code displayed on screen. Then click “Submit My Application”.
  4. You will then receive email messages with further instructions.

Terms and Conditions of Pag-IBIG MP2 Savings Program

  1. MP2 Program is open to all Pag-IBIG 1 Members (P1) only.
  2. This program is solely a savings scheme.
  3. The minimum contribution is P500.
  4. The membership term is 5 years.
  5. The annual dividend will be credited to the member’s account.
  6. Upon maturity, the total savings and dividends will be received by the member.
  7. Upon maturity, the member may opt to renew his/her MP2 Savings for another 5 years.
  8. Dividend rates are subject to existing HDMF policy.

For inquiries and further questions about Pag-IBIG MP2, you may contact the Pag-IBIG Hotline at 724-4244 or email them at contactus@pagibigfund.gov.ph.

Check out these Frequently Asked Questions about the MP2 Program from the Pag-IBIG website:

Who are Eligible for the MP2 Program?

This program is open to Pag-IBIG I members whose gross monthly income exceeds five thousand pesos (Php5,000.00).

What is the minimum contribution per month for the MP2?

The minimum contribution is Php 500.00 per month but the member may remit higher that the said amount. Payments shall be recorded as of payment date.

How long can a member invest in the MP2?

The MP2 program has a term of five (5) years.

The member can opt to withdraw or continue his MP2 membership after maturity.

What is the dividend rate under the MP2?

A member shall be entitled to flexible dividend rates which shall be determined within the first quarter of every year and approved by the Board of Trustees; provided that the said rate shall be higher than that of Pag-IBIG I.

(See Sample Computation above)

Are the contributions and earning under the MP2 government guaranteed?

Yes, it is government guaranteed.

Where can one enroll for the MP2 program?

A. MP2 Registration Online

  • At the Pag-IBIG website, click “E-Services”, and select “MP2 Enrollment System (MP2EF)”
  • Accomplish and submit the online MP2 enrollment form
  • Print the system generated MP2EF reflecting the MP2 Account No.
  • Proceed to the branch, present the MP2EF, and start remitting.

B. Employee assisted at the Pag-IBIG Branch (bring valid ID)

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