MP2 in plain words
Four things that make MP2 worth a look for money you will not need for five years.
Save at least ₱500 per remittance, voluntarily, on top of your regular Pag-IBIG contribution. The term is 5 years, renewable after maturity.
₱500 min · 5 yrsYearly dividends from the fund's income, historically higher than most government-backed savings. Declared each year, not fixed.
7.12% for 2025MP2 dividends are exempt from income tax, unlike bank interest which is taxed at 20 percent.
tax-freeSavings are backed by the full faith and credit of the national government.
gov't-backedCompounded or yearly payout
worth the waitMP2 is the Pag-IBIG Fund's voluntary savings program, kept separate from the mandatory contribution taken from your salary. You put in at least ₱500 per remittance for a fixed 5-year term, which you can renew once it matures. Any active member can open one, along with former members who reached 24 monthly contributions, Pag-IBIG pensioners, and OFWs. You are allowed more than one account if you prefer to save in parcels.
The return comes as a yearly dividend drawn from the fund's income, 7.12 percent for 2025, and since it is declared only after the year closes it is never guaranteed in advance. Pag-IBIG applies the rate to your average monthly balance, so a peso saved in January earns more than one saved in December. If you held ₱100,000 for a full year at 7.12 percent, roughly ₱7,120 would be credited, and unlike bank interest none of it is shaved off by the 20 percent final tax.
Where the two payout choices differ is what happens to each year's dividend. Under the compounded option it stays in the account and earns dividends of its own until maturity, so the balance climbs faster. The yearly payout hands you the dividend each year if you need the income sooner, though paid-out amounts stop growing. Withdrawing early without a qualifying reason such as illness or unemployment can forfeit dividends. For a rate you set yourself, see the compound interest calculator, or check your monthly deductions with the contributions calculator.
Questions people ask
answered in plain wordsMP2 is the Pag-IBIG Fund's voluntary savings program, separate from your mandatory monthly contribution. You save at least ₱500 per remittance for a 5-year term, earn yearly dividends that are exempt from tax, and the savings are backed by the national government.
The default is 7.12 percent, the rate Pag-IBIG declared for 2025 (2024 was 7.10 percent). Rates are declared after each year ends based on the fund's income, so they are not guaranteed. You can change the rate in the options to test more conservative assumptions.
With the compounded option, your dividends stay in your MP2 account and earn dividends themselves until the 5-year maturity, so it grows more. With the yearly payout option, dividends are credited to you each year, useful if you want the income now, but the paid-out amounts stop earning.
Any active Pag-IBIG member, as well as former members with at least 24 monthly contributions and Pag-IBIG pensioners. You can open more than one MP2 account, and OFWs can enroll too.
Yes, but with conditions. Pre-termination is allowed for reasons like total disability, critical illness, unemployment due to company closure, or death of the saver, generally keeping your dividends. Withdrawing without a qualifying reason means reduced or forfeited dividends, so plan to keep the money in for the full term.
Pag-IBIG applies the declared rate to your average monthly balance for the year, then credits the dividend at year end. This calculator follows the same method, which is why saving earlier in the year earns slightly more.
No. Every calculation runs privately on your device. Nothing you type is stored, tracked, or sent to a server.
Where these numbers come from
straight from the sourceThe rates and rules on this page follow the official issuances below. When an agency updates a schedule, this is where to confirm the current figure against your own situation.