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What is Modified Pag-IBIG 2?

by Jericho Zafra

LAST week, Home Development Mutual Fund Pag-IBIG’s top official reported that the agency’s voluntary savings program also known as the Modified Pag-IBIG 2 or MP2 Savings has accumulated a record-breaking P 33.72 billion in savings from January to October this year.

“We are happy to note that this year is even more remarkable as the P33.72 billion collectively saved by our members during the first 10 months of the year has already well surpassed the entire year’s record-high collection of P25.95 billion in 2021,” said Pag-IBIG Fund Chief Executive Officer Marilene C. Acosta in a statement.

What is MP2 Savings?

The Modified Pag-IBIG II (Pag-IBIG MP2) Savings Program is a special voluntary savings program with a 5-year maturity that is intended for active Pag-IBIG Fund members who would like to increase their savings and generate higher dividends in addition to their regular savings from the agency.

Active Pag-IBIG Fund members are eligible to participate in the MP2 Savings program. Even so, it is also available to previous Pag-IBIG Fund members (both pensioners and retirees) who have alternative sources of monthly income, and who have 24 monthly savings before their retirement. 

There is no limit to the amount a member can save in the MP2 savings. However, the government-owned corporation will require minimum MP2 savings of P500 per remittance, according to Pag-IBIG.

How to save in the MP2 savings? 

Your company may take a portion of your monthly salary to cover your MP2 contributions, which they will then transfer to the Pag-IBIG Fund.

It can also be transferred via the agency’s authorized online remittance services such as GCash, Moneygment App via Cashpinas, Coins.ph via Bayad, and PayMaya.

Additionally, members can do over-the-counter remittances in any Pag-IBIG Fund branch. It can also be remitted through the agency’s authorized collecting partners’ outlets or branches here in the Philippines, which include Asia United Bank, Robinsons Bank, United Coconut Planters’ Bank, SM Business Centers, M. Lhuillier, and ECPay accredited merchants. 

Overseas Filipino Workers who would like to save in the MP2 savings can also pay through the authorized collecting partners’ outlets or branches overseas, such as Philippine National Bank, Asia United Bank, IRemit-powered merchants, Ventaja-powered merchants, and Cash Pinas-powered merchants.

Return rates

The annual dividend rate that your MP2 Savings earn is more than the dividend rate that the Pag-IBIG Regular Savings Program earns for its members. 

At least 70% of Pag-IBIG Fund’s annual net income is put aside as dividends, which are credited correspondingly to members’ Pag-IBIG Savings. 

This indicates that the more money you put away into savings, the higher returns you will receive.

The agency said they will assure their members that they are “doing all that they can do to provide them the best return rates on every hard-earned peso they have saved with the agency” with the agency.

When asked how much would be the possible dividend rates of members for their regular savings and MP2 savings, Pag-IBIG’s Department Manager III Domingo Jacinto Jr. said “we cannot accurately project the dividend rates for our members’ savings, namely their Regular Savings and the MP2 Savings.”

“​​Rest assured though, as our CEO mentioned, that we are doing all that we can to gain as much revenue, post the highest profit, and subsequently declare the best possible return rates for our members,” Jacinto said.

Photo Credit: PNA



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