What is exact and what is an estimate
- Exact: the 5-year term, the ₱500 minimum per remittance and the two dividend options of HDMF Circular 407.
- Estimate: each year's dividend is the rate × the average of that year's 12 month-end balances. Pag-IBIG computes on its actual posting dates, so its figure governs.
- Assumption: one rate for all 5 years. Rates are declared yearly; the default 7.12% is the rate for 2025, announced 27 Feb 2026 (GMA News / PNA, 27–28 Feb 2026 (official circular not yet published)).
- Not captured: early-withdrawal penalties and earnings after maturity (see the tables below).
Results are planning estimates. The agency's own records and computation govern: posted contributions, the exact salary credits on file and rounding can change the figure. Pag-IBIG is the only authority on your benefit or loan.
Quick answer
Pag-IBIG MP2 is a voluntary 5-year savings account under HDMF Circular 407: ₱500 minimum per remittance, no maximum stated, dividends tax-free under RA 9679 Sec. 19 and government-guaranteed. For 2025 it earned 7.12% (regular savings 6.62%), announced 27 Feb 2026 as reported by GMA News and PNA. ₱1,000 a month for 5 years at 7.12% grows to about ₱71,842 compounded. Enrol on Virtual Pag-IBIG with your MID number and a valid ID; proof of source of funds is needed only for payments over ₱100,000.
Key points
- MP2 earned 7.12% for 2025, 0.50 percentage points more than regular savings, as in every year since 2016.
- Choose compounded or annual payout at enrolment; it cannot be changed. Compounding added ₱984 on ₱1,000 a month over 5 years.
- Dividends are tax-free; a bank deposit pays a 20% final tax on interest.
- Leaving early for a reason not on Pag-IBIG's list costs half your dividends under Circular 407 (compounded option).
- Claim at maturity: under Circular 407 (2018), unclaimed savings earn regular rates for 2 years, then nothing. A newer Circular 487 (reported effective 28 Feb 2026, adding a one-time rollover) is unverified; check with Pag-IBIG.
On this page (12)
- Pag-IBIG dividend rate history: MP2 and regular savings
- How MP2 dividends are computed: worked example
- Annual payout or compounded: which MP2 option?
- MP2 vs regular savings vs bank time deposit
- Pag-IBIG MP2 requirements: who can enrol
- How to open an MP2 account
- Where to pay MP2 savings
- Can you withdraw MP2 before 5 years?
- What happens when MP2 matures?
- Common MP2 mistakes
- Frequently asked questions
- Sources and references
Data used in this calculator
In force 2026Planning estimate- Term and minimum
- 5 years; ₱500 per remittance; one-time payments above ₱500,000 by personal or manager's check (HDMF Circular 407, text via mirror)
- Default dividend rate
- 7.12% for 2025, announced 27 Feb 2026 (GMA News / PNA, 27–28 Feb 2026 (official circular not yet published)); secondary source
- Method
- Rate × average of the year's month-end balances; compounded option adds each year's dividend to the balance
- Tax
- Exempt: RA 9679 Sec. 19 (all benefit payments of the Fund)
Last verified against the issuances on November 12, 2026. Report an error on this page.
Pag-IBIG dividend rate history: MP2 and regular savings
MP2 paid 7.12% for 2025, against 6.62% on regular savings. Rates are labelled by the year the savings earned them; each is declared the following year.
| Measure | MP2 | Regular savings |
|---|---|---|
| Latest (2025, announced 27 Feb 2026) | 7.12% | 6.62% |
| Highest since 2016 | 8.11% (2017) | 7.61% (2017) |
| Lowest since 2016 | 6.00% (2021) | 5.50% (2021) |
| Average, 2016–2025 | 7.06% | 6.56% |
Computed from the declared rates below. As of November 2026.
10 of 10 rows
| 2025 | 7.12% | 6.62% | 27 Feb 2026 | GMA News / PNA, 27–28 Feb 2026 (official circular not yet published) |
| 2024 | 7.10% | 6.60% | 27 Feb 2025 | Philstar / Inquirer, 28 Feb 2025 (official circular not located) |
| 2023 | 7.05% | 6.55% | 20 Feb 2024 | HDMF Circular No. 461 (5 Mar 2024) |
| 2022 | 7.03% | 6.53% | 23 Mar 2023 | HDMF Circular No. 458 (24 Apr 2023) |
| 2021 | 6.00% | 5.50% | 10 Mar 2022 | HDMF Circular No. 455 (17 Mar 2022), as adjusted by Circular No. 456 |
| 2020 | 6.12% | 5.62% | 18 Feb 2021 | HDMF Circular No. 442 (4 Mar 2021) |
| 2019 | 7.23% | 6.73% | 5 Mar 2020 | HDMF Circular No. 434 (14 Apr 2020) |
| 2018 | 7.41% | 6.91% | 2019 | HDMF Circular No. 423 (14 Mar 2019) |
| 2017 | 8.11% | 7.61% | 2018 | HDMF Circular No. 399 (14 Mar 2018) |
| 2016 | 7.43% | 6.93% | 2017 | HDMF Circular No. 377 (14 Mar 2017) |
2016–2023: Pag-IBIG's official dividend circulars, certified copies registered with the UP Law Center's Office of the National Administrative Register (ONAR), rounded to 2 decimals. 2024 and 2025: Pag-IBIG announcements as reported by the outlets named (no official circular located). As of November 2026.
MP2 and regular savings dividend rates by year earned
2016–2025, % a year
- MP2
- Regular savings
| Point | MP2 | Regular savings |
|---|---|---|
| 2016 | 7.43% | 6.93% |
| 2017 | 8.11% | 7.61% |
| 2018 | 7.41% | 6.91% |
| 2019 | 7.23% | 6.73% |
| 2020 | 6.12% | 5.62% |
| 2021 | 6.00% | 5.50% |
| 2022 | 7.03% | 6.53% |
| 2023 | 7.05% | 6.55% |
| 2024 | 7.10% | 6.60% |
| 2025 | 7.12% | 6.62% |
Pag-IBIG officials cite a rule under the RA 9679 implementing rules that at least 70% of annual net income goes to dividends (GMA News, 27 Feb 2026). For 2025, Pag-IBIG reported paying out 98.6% of net income (PNA via SunStar, 28 Feb 2026). The rate for 2026 savings has not been declared as of November 2026.
How MP2 dividends are computed: worked example
Our calculator applies the rate to each year's average balance (the average of 12 month-end balances). Example: ₱1,000 every month for 5 years at the latest rate.
- 1
Year 1: saved ₱12,000, dividend ₱462.80
Average balance ₱6,500 × 7.12%. Payout and compounded are equal in year 1.
- 2
Year 2: saved ₱24,000, dividend ₱1,350.15
Compounded: rate × average balance including past dividends. Annual payout: ₱1,317.20 on savings alone.
- 3
Year 3: saved ₱36,000, dividend ₱2,300.68
Compounded: rate × average balance including past dividends. Annual payout: ₱2,171.60 on savings alone.
- 4
Year 4: saved ₱48,000, dividend ₱3,318.89
Compounded: rate × average balance including past dividends. Annual payout: ₱3,026.00 on savings alone.
- 5
Year 5: saved ₱60,000, dividend ₱4,409.60
Compounded: rate × average balance including past dividends. Annual payout: ₱3,880.40 on savings alone.
Value at maturity, compounded
₱71,842.12
₱60,000 saved + ₱11,842.12 dividends. Under annual payout you would receive ₱10,858.00 over the 5 years, ₱984.12 less.
| You save | Total saved | Dividends, compounded | Value at maturity | Dividends, annual payout |
|---|---|---|---|---|
| ₱500 a month | ₱30,000 | ₱5,921 | ₱35,921 | ₱5,429 |
| ₱1,000 a month | ₱60,000 | ₱11,842 | ₱71,842 | ₱10,858 |
| ₱5,000 a month | ₱300,000 | ₱59,211 | ₱359,211 | ₱54,290 |
| ₱100,000 one-time | ₱100,000 | ₱41,043 | ₱141,043 | ₱35,600 |
5-year term at 7.12% (the 2025 rate) held flat. Computed with this calculator; Pag-IBIG's computation governs. As of November 2026.
Annual payout or compounded: which MP2 option?
Compounded earns more; annual payout gives yearly cash. You choose once, at enrolment.
| Compounded | Annual payout | |
|---|---|---|
| When dividends are paid | With your savings at maturity | Every year |
| Where | Total Accumulated Value at maturity | Your LANDBANK, DBP or accredited bank account |
| ₱1,000 a month, 5 years at 7.12% | ₱11,842 dividends | ₱10,858 dividends |
| Early exit, unlisted reason | Savings + 50% of dividends | Savings minus a fee of 50% of dividends already received |
| Can you switch? | No: open a new account | No: open a new account |
Source: HDMF Circular 407 (text via mirror); official MP2 terms on Virtual Pag-IBIG, items 11.1–11.2 (read 12 Nov 2026); Philstar Life, 28 Feb 2026. Amounts computed with this calculator. As of November 2026.
Compounded suits savers building a lump sum for a house down payment, tuition or retirement, and it is the safer pick if you might exit early. Annual payout suits retirees who want yearly income: on a ₱100,000 one-time deposit at 7.12%, it pays about ₱7,120 a year to your bank. Want both? Open two accounts.
MP2 vs regular savings vs bank time deposit
To match MP2's tax-free 7.12%, a deposit taxed at 20% must earn 8.90% gross (computed: 7.12% ÷ 0.8).
| MP2 | Regular savings (Pag-IBIG I) | Bank time deposit | |
|---|---|---|---|
| Return (2025) | 7.12% | 6.62% | X%, your bank's quoted rate |
| Tax on earnings | None (RA 9679 Sec. 19) | None (RA 9679 Sec. 19) | 20% final withholding tax |
| Net to you | 7.12% | 6.62% | 0.8 × X% |
| ₱1,000 a month, 5 years, compounded | ₱11,842 | ₱10,943 | Depends on X |
| Access | 5-year term; early exit on listed grounds | Maturity, retirement or other legal grounds | Bank's terms |
| Backing | Government-guaranteed (Circular 407) | Government responsible for Fund solvency (RA 9679 Sec. 20) | Bank's terms |
X is a placeholder, not a market rate: a deposit earning X% gross nets 0.8X% after the 20% final tax (illustrative). Regular savings computed with this calculator's method at 6.62%. As of November 2026.
“All benefit payments made by the Pag-IBIG Fund shall likewise be exempt from all kinds of taxes”
“MP2 savings and dividends are government-guaranteed”
Regular savings are your mandatory contributions (see the Pag-IBIG contribution calculator). MP2 does not replace them: loans require active regular membership, and MP2 savings do not count toward a multi-purpose loan. For bank interest tax rules, check with your bank.
Pag-IBIG MP2 requirements: who can enrol
Any active Pag-IBIG member, regardless of income, plus retired former members with at least 24 monthly savings.
| Item | Rule | Source |
|---|---|---|
| Who can enrol | All Pag-IBIG I members regardless of income; former members who are pensioners or have other income, any age, with at least 24 monthly savings before retirement | Circular 407 |
| Minimum | ₱500 per remittance | Circular 407 |
| Maximum | None stated; Philstar Life (28 Feb 2026) says "no savings limit". Reported caps of ₱10M or ₱20M are unconfirmed: check with Pag-IBIG | Circular 407; Philstar Life |
| Documents | MID number, valid ID, selfie; Philippine passport or citizenship reacquisition certificate where applicable. Proof of income or source of funds only for payments over ₱100,000 | Philstar Life, 28 Feb 2026; official MP2 terms on Virtual Pag-IBIG (item 4) |
| Account number | 12-digit MP2 account number, separate from your MID | Philstar Life, 28 Feb 2026 |
| Multiple accounts | Allowed, each registered separately | Circular 407 |
Source: HDMF Circular 407 (text via Lawyerly mirror); Philstar Life explainer, 28 Feb 2026 (secondary). As of November 2026.
No MID number yet? Register as a member first with the Member's Data Form. OFWs enrol the same way online.
How to open an MP2 account
Online through Virtual Pag-IBIG, or at a Pag-IBIG branch.
MP2 enrolment, online or at a branch
1Have your MID number
Your permanent Pag-IBIG membership ID.
Online: Virtual Pag-IBIG
Be a Member → Apply for MP2
On the official portal.
Enter your details
Amount, payout option, payment mode and source of funds.
MP2 account number issued online
Branch
Bring ID and MID
Plus proof of source of funds if a payment will exceed ₱100,000.
Choose your payout option
Compounded or annual payout; it is final.
MP2 account number from the branch
2Make your first payment
At least ₱500 through any channel below.
The official portal is Virtual Pag-IBIG; Sulat.ph is not affiliated with Pag-IBIG. Other Pag-IBIG tools are on the Pag-IBIG hub, and every agency on /benefits.
Where to pay MP2 savings
Online, through e-wallets and payment centres, at branches, or by salary deduction. One-time payments above ₱500,000 must be by personal or manager's check.
| Channel type | Channels |
|---|---|
| Online | Virtual Pag-IBIG |
| E-wallets | GCash, Maya |
| Payment centres | ECPay, Bayad, SM Business Services, ML Kwarta Padala |
| Bank | AUB |
| In person | Pag-IBIG branches |
| Payroll | Salary deduction through your employer |
Source: Philstar Life, 28 Feb 2026 (secondary). Fees vary by channel and are not listed here. As of November 2026.
Can you withdraw MP2 before 5 years?
Yes, in full on a listed ground; for any other reason you lose part of your dividends.
- Listed grounds (members): total disability or insanity; separation for health reasons; death of the member or an immediate family member; retirement; permanent departure; layoff or company closure; OFW repatriation; critical illness of the member or immediate family (needs Pag-IBIG approval); other Board-approved grounds.
- Listed grounds (pensioners): total disability or insanity; death; permanent departure; critical illness; other Board-approved grounds.
| Reason | Compounded option | Annual payout option |
|---|---|---|
| Listed ground | Savings plus dividends (no penalty stated) | Savings plus dividends (no penalty stated) |
| Any other reason | Savings + 50% of total dividends earned (Circular 407; official MP2 terms, item 11.1) | A pre-termination fee of 50% of the dividends already received, deducted from your savings (official MP2 terms, item 11.2). Circular 407 (2018) originally said contributions only |
| Repatriated Middle East OFW (2026) | Up to 100% of savings plus returns | Up to 100% of savings plus returns |
Source: official MP2 terms and conditions on Virtual Pag-IBIG, items 11.1–11.2 (read 12 Nov 2026); HDMF Circular 407 (text via mirror); Manila Bulletin, 6 Apr 2026 (OFW package, secondary). As of November 2026.
Example: ₱1,000 a month, compounded, closed after 3 years for an unlisted reason. You get ₱36,000 saved plus 50% of ₱4,113.63 dividends, ₱38,056.82 in total (computed with this calculator).
What happens when MP2 matures?
Claim it. Under Circular 407, unclaimed savings stop earning MP2 dividends at maturity.
MP2 earnings timeline under Circular 407 (2018)
| Span | Detail |
|---|---|
| MP2 term | 5 years at MP2 rates |
| Unclaimed | 2 years at regular savings rates |
| Payable account | No more dividends |
Maturity claims can be filed on Virtual Pag-IBIG (per Pag-IBIG's FAQ, search snippet). The claim uses the APB Claim form HQP-PFF-285 and your Loyalty Card or one valid ID (checklist HQP-PFF-377, 04/2023). Blogs report a newer Circular No. 487 (effective 28 Feb 2026) with a rollover option; we could not verify it, so check with Pag-IBIG. Pair MP2 with your SSS pension estimate when planning retirement.
Common MP2 mistakes
| Mistake | What happens | Do this instead |
|---|---|---|
| Choosing annual payout, then exiting early | Half the dividends already paid to you is deducted from your savings | Choose compounded if you might need the money early |
| Remitting less than ₱500 | Below the minimum per remittance | Send at least ₱500 each time |
| Paying over ₱500,000 in cash | Not allowed for one-time payments that large | Use a personal or manager's check |
| Leaving matured savings unclaimed | Under Circular 407 (2018): MP2 rate stops; after 2 years, no dividends (a reported Circular 487 may change this; check with Pag-IBIG) | Claim at maturity or open a new account |
| Quoting the rate by year announced | Calling 7.12% the "2026 rate" | It is the rate for 2025 savings |
| Stopping regular contributions | Loans need active regular membership | Keep regular membership active alongside MP2 |
| Expecting to switch payout options | Not allowed during the term | Open a second MP2 account instead |
Buod sa Tagalog
Ang Pag-IBIG MP2 ay boluntaryong ipon na may 5 taong termino, at ₱500 ang pinakamababang hulog. Ang dibidendo para sa 2025 ay 7.12%, mas mataas kaysa 6.62% ng regular savings, at walang buwis. Kung ₱1,000 kada buwan sa loob ng 5 taon, mga ₱71,842 ang makukuha mo kung compounded. Pumili ng compounded o annual payout sa simula dahil hindi na ito mapapalitan. Kunin agad ang ipon pagka-mature: sa ilalim ng Circular 407, 2 taon lang itong kikita sa regular na rate (may iniulat na bagong Circular 487; itanong sa Pag-IBIG).
Frequently asked questions
+How much is the minimum Pag-IBIG MP2 contribution?
₱500 per remittance under Circular 407, with no maximum stated in the circular. You can pay monthly, occasionally, or once as a lump sum, but one-time payments above ₱500,000 must be by personal or manager's check. Reported caps of ₱10 million or ₱20 million could not be confirmed, so check with Pag-IBIG for very large amounts.
+What is the MP2 dividend rate this year?
The latest is 7.12%, earned on 2025 savings and announced on 27 Feb 2026 (reported by GMA News and PNA). Regular savings earned 6.62%. The rate for 2026 savings will be declared after Pag-IBIG closes its 2026 books; the last four declarations came in late February or March of the following year.
+How much will I earn from my MP2 savings?
At 7.12%, ₱1,000 a month for 5 years earns about ₱11,842 compounded, for ₱71,842 at maturity. A ₱100,000 one-time deposit earns about ₱41,043 over the same term. These are computed with our calculator at a flat rate; actual rates are declared yearly, so enter your own amount and rate above.
+How can an OFW open a Pag-IBIG MP2 account?
The same way as members in the Philippines: online through Virtual Pag-IBIG, using your MID number, a valid ID and a selfie; proof of source of funds is needed for payments over ₱100,000. Members who reacquired or retained Philippine citizenship may be asked for the certificate. Payments can be made online or through e-wallets, so you do not need a branch visit.
+Can I withdraw my MP2 savings before 5 years?
Yes. On a listed ground such as retirement, permanent departure, layoff, critical illness or death in the family, you receive your savings and dividends. For any other reason, the compounded option pays your savings plus half the dividends. Under annual payout, the official MP2 terms on Virtual Pag-IBIG charge a fee of 50% of the dividends already received, deducted from your savings (Circular 407 of 2018 originally returned contributions only).
+Is it better to get MP2 dividends yearly or compounded?
Compounded earns more: on ₱1,000 a month over 5 years it adds about ₱984 at 7.12%, and early exit costs only half the dividends. Annual payout suits savers who want yearly cash in their bank account. The choice is fixed for the account's life; you can open a second account with the other option.
+Can I open a new MP2 account after it matures?
Yes. Under Circular 407 (2018), continuing to save in MP2 after maturity requires a new account, and savings left in the matured account earn regular rates for only 2 years. A newer Circular 487, reported effective 28 February 2026, reportedly adds a one-time rollover, but we could not verify it, so ask Pag-IBIG when your account nears maturity.
+Can I have multiple MP2 accounts?
Yes. Circular 407 allows more than one MP2 account as long as each is registered separately. Each account has its own 12-digit number, 5-year term and payout option, so some savers open one compounded and one annual-payout account, or start a new account each year.
+Is the MP2 dividend taxable?
No. RA 9679 Sec. 19 exempts all benefit payments of the Pag-IBIG Fund from taxes, and Pag-IBIG materials describe MP2 dividends as free of the 20% withholding tax on bank interest. That is why a taxable deposit needs about 8.90% gross to match 7.12%.
+What are the requirements for MP2 enrollment?
An active Pag-IBIG membership with an MID number, a valid ID and a selfie for online enrolment, according to a Philstar Life explainer (28 Feb 2026). Proof of income or source of funds is required only for payments over ₱100,000, per the official MP2 terms on Virtual Pag-IBIG. Retired former members need at least 24 monthly savings made before retirement.
+What is the difference between regular Pag-IBIG savings and MP2?
Regular savings are mandatory, matched by employers, and stay until maturity, retirement or another legal ground. MP2 is voluntary personal savings, matures in 5 years and paid a higher dividend (7.12% vs 6.62% for 2025). Only regular savings count for loans.
Sources and references
- HDMF Circular No. 407: Amended Guidelines for MP2 (2018) — term, minimum, dividend options, early withdrawal, post-maturity rules; text via Lawyerly mirror (checked November 12, 2026)
- Republic Act No. 9679 — Sec. 19 tax exemption, Sec. 20 government responsibility for solvency (checked November 12, 2026)
- Pag-IBIG Fund: MP2 FAQ — online maturity claims (read from search snippets; page blocked automated reading) (checked November 12, 2026)
- Virtual Pag-IBIG: MP2 Terms and Conditions (official) — current enrolment terms: proof of source of funds for payments over ₱100,000 (item 4); early-exit dividend fees (items 11.1–11.2) (checked November 12, 2026)
- UP Law Center ONAR: HDMF Circular No. 461 — official 2023 dividend circular (certified copy); the 2016–2022 circulars 377, 399, 423, 434, 442, 455/456 and 458 are registered there too (checked November 12, 2026)
- Virtual Pag-IBIG (official member portal) — MP2 enrolment, payments and maturity claims (checked November 12, 2026)
- Provident Benefits Claim Checklist, HQP-PFF-377 V05 (04/2023) — claim form and ID; via government mirror (checked November 12, 2026)
- GMA News, 27 Feb 2026: 2025 dividends — MP2 7.12%, regular savings 6.62% (secondary) (checked November 12, 2026)
- SunStar (PNA), 28 Feb 2026 — 2025 dividends and 98.6% payout ratio (secondary) (checked November 12, 2026)
- Philstar, 28 Feb 2025: 2024 dividends — MP2 7.10%, regular savings 6.60% (secondary) (checked November 12, 2026)
- Philstar Life, 28 Feb 2026: MP2 explainer — enrolment steps, documents, payment channels (secondary) (checked November 12, 2026)
- Manila Bulletin, 6 Apr 2026: repatriated OFW package — 100% early MP2 withdrawal for repatriated Middle East OFWs (secondary) (checked November 12, 2026)
This page is part of our Pag-IBIG guides and calculators, inside the SSS, Pag-IBIG, PhilHealth and GSIS benefits hub.
Related calculators and guides
Author and editorial review
Deepak Middha, Chartered Accountant
Chartered Accountant with 18 years in hedge funds; writes and maintains sulat.ph. Every rate, ceiling, deadline and fee on this page is taken from the law or the agency's own circulars and official announcements and was checked against that source on November 12, 2026. Where a figure could not be confirmed officially, the page says so.
Spotted an error or an outdated rule? Send a correction.
Next step
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