How to Enroll in PAG-IBIG's MP2 Program | The Beat Asia
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Your Guide to Investing in PAG-IBIG's MP2 Savings Program 2022

How to Invest in PAG IBIG MP2 Savings Program

Want to save more and earn tax-free dividends on top of your PAG-IBIG savings? It’s possible with the MP2 program!

If you don’t know yet, the PAG-IBIG MP2 program is an optional voluntary savings scheme tailor-made for active and former PAG-IBIG fund members. Similar to investing in mutual funds, the program allows members to save money and earn high dividends in addition to their regular savings. Compared to the regular PAG-IBIG savings, the MP2 program lets members have access to funds for as early as five years.


Who Can Invest Under PAG-IBIG MP2

No matter how much your monthly salary is, you must be an active member of PAG-IBIG to be eligible for the MP2 program. Regardless of age, former pensioners may also apply provided they have paid at least 24 months of contributions before retirement. To be considered an official PAG-IBIG member, you must register first and pay your monthly contributions.

Why You Should Invest in PAG-IBIG MP2

While it’s not mandatory for members, the PAG-IBIG MP2 program can be beneficial in terms of earning extra money and meeting your financial goals. One of the main reasons why you should invest is the above-market dividend rates. In 2017, PAG-IBIG garnered its highest rate at 8.11%. While it has slightly declined throughout the years — with 6.12% in 2020 and 6.00% in 2021 — investing under the MP2 program is still worth a shot as the dividend earnings are tax-free. What’s more, the process is easy as members can save as low as P500 per remittance.

PAG-IBIG MP2 Computation

Since dividend earnings under PAG-IBIG's MP2 program are free, members will receive the full amount without paying the final 20% withholding tax. To compute your MP2 dividend, just multiply the dividend rate for the year by your monthly balance. Here’s the formula: Dividend = Dividend rate x Average monthly balance. Note that PAG-IBIG usually announces the dividend rate during the first or second quarter of the following year through its official website.

How to Withdraw MP2 Savings Before Its Five-Year Maturity

PAG-IBIG allows its members to claim their MP2 savings even before its five-year maturity, but only under the following reasons:

  • For PAG-IBIG members: Disability or insanity, employment termination due to health reasons, retirement, unemployment due to company closure, retrenchment, death of the MP2 account holder, OFW repatriation from the host country, critical illness
  • For retirees and pensioners: Disability or insanity, death of the MP2 account holder, critical illness
  • For members with compounded dividend payout: Principal MP2 savings, 50% of the total dividend earned from prior years, 50% of the dividends for the current year
  • For members with annual dividend payouts: Principal MP2 savings, 50% of the dividends for the current year

How to Enroll in PAG-IBIG's MP2 Program

Opening a PAG-IBIG MP2 account is simple and can be done in two ways. The first is by heading to the nearest PAG-IBIG outlet and submitting a fully accomplished PAG-IBIG MP2 form. If you want to pay your first MP2 contribution, you can settle the balance directly at the office.

If you prefer to apply safely and conveniently, you may do so by registering online. Note that for the last step, you should still physically go to a PAG-IBIG office to complete your enrollment.

For more information, visit PAG-IBIG's official website.

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