Manila, Philippines

Better than Time Deposits: History of Pag-Ibig MP2 Dividend Rates

pag ibig mp2 FAQs
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Last Update: 22Mar2019 for the 2018 MP1 / MP2 dividend rate

I was trying to search the net for Pag-ibig press releases on their historical MP2 dividend rates, I wanted to compile a list for our easy reference and just update it annually. It was quite challenging really, scouring the many documents on their site (I also looked into their Facebook page by the way). Finally, I decided to just call their hotline instead 724-4244 (this is literally dial PAG-IBIG) and give it a shot. Surprisingly I got through immediately, there were no queues on the hotline and Sir N**n was very accommodating to my queries (name redacted for his safety LOL data privacy).


What’s MP2 again? MP 2 stands for Modified Pag-Ibig 2. It is named as such to differentiate it from the mandatory Pag-Ibig deductions that employers deduct from their employees monthly. Some refer to this mandatory deduction of P100 per month as MP1. Hence, this an additional voluntary savings that gives out higher dividends / interest rates. Here’s a short video:

Other salient points of MP2 are as follows:

  • Government guaranteed
  • Tax free dividends
  • Can be monthly (as low as PHP500) or less frequent as long as you reach PHP6,000 annually
  • Can be salary deducted through your employer (if they allow it) or you can enroll your own remittance method
  • 5-year maturity

You may read our previous article on MP2 here: High Interest Savings Thru Pag-ibig MP2.

Click here for a copy of their FAQs.



So I dialed PAG-IBIG and was able to talk to their customer service. It was meant to be. They provided the following rates from 2013 to 2018 for both MP 1 and MP 2. Watch this space for updates 2019 onwards.

  • MP 1
    • 2018: 6.91%
    • 2017: 7.61%
    • 2016: 6.93%
    • 2015: 4.83%
    • 2014: 4.19%
    • 2013: 4.09%
  • MP 2
    • 2018: 7.41%
    • 2017: 7.83% to 8.11%*
    • 2016: 7.43%
    • 2015: 5.33%
    • 2014: 4.69%
    • 2013: 4.59%
    • 2010 to 2012:  4.92% (est)**


*Per our phone conversation, the dividend rate for 2017 is 7.83% (I triple-checked this with him), whereas upon checking the website, the quoted rate is 8.11% (Click here for the article). Anyway, both are respectably high for a savings account. Plus this one is government guaranteed and tax free!

** Estimate only, for comparison purposes. Based on a previous flyer, average for 2010 to 2016 is 5.26%. The 4.92% estimate for 2010 to 2012 will yield a simple average of 5.26% for 2010 to 2016. Note, simple average only.

***Mar 22 2019 Notes: Per our phone conversation, the dividend rate is slightly smaller from last year as there are a lot more members who are entitled to the dividends. Likewise, she mentioned that MP2 savings may now be remitted via Bayad Centers as long as the initial deposit was made in a Pag-ibig Branch. This is for validation.



Based on the same press release, MP2 is now open to all members with at least 24 monthly savings (MP 1) prior to retirement. It no longer has minimum income requirement because previously, MP 2 was open only to those with P5,000 minimum monthly income. It now covers retirees, pensioners and former Pag-Ibig members.

Based on my previous discussions with the Pag-Ibig hotline, OFWs are also qualified and they may remit via bayad centers. Unfortunately for locally employed, the available options so far are salary deduction, or over the counter to any Pag-Ibig branch (open during office hours),  which is quite of a downer since not employers are ready to implement extra deductions for MP 2. This will really challenge Juan’s discipline in saving, whether he’s willing to go to a Pag-ibig branch regularly to save. Here’s to hoping that ADA in bank account, or online transfer will be made available soon.

Nonetheless, they also mentioned that it is not required that one saves an amount monthly, as long as he meets the PHP6000 annually. One can even do lump sum of PHP30K or higher so that s/he will only go to Pag-Ibig branch once. At least that’s what they told me, ok?

Once again, caveat. I’m just here to update you on possible investment options for us retail investors.

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Photos from Pag-ibig website and Facebook page.

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 Pag-Ibig MP2

15 Responses

  1. Anonymous says:

    Totoo ba yang ganyan P759.43dividends for 29,000 at 7.41%. Disappointing nga magpapa invest pa nmn sna ako.Bakit anonymous ka????

  2. Admin says:

    See our reply above.

  3. Admin says:

    Hi. I did a very rough simulation based on your savings timing. Again, I’m not from Pag-ibig so they are the best party to answer your question. I just did a very simplistic simulation.

    I divided the annual rate of Pag-ibig into 12 so on a per month basis, that’s how much your money earns. Since the build up of your savings is around 1k to 2k per month, (and a zero in Jan) then the balance that earns interest early on in the year is small. Technically, your money was only 29k for one month of the year, prior to December your average balance is just 7.5k. I arrived at P691 interest for the whole year, which is still smaller than what Pag-ibig gave you. 🙂

    Try to access the image of the simulation here:

  4. Anonymous says:

    Feb-Apr 2018 1,000.00 per month
    May-Nov 2018 2,000 per month
    Dec 2018 12,000 solely for this month
    Total: 29,000 for 2018

    Total dividends reflected on ESAV was only P759.43 for 2018. That’s too disappointing at only about 2.62%. Hope you can clarify Sir. Thanks a lot.

  5. Anonymous says:

    Any sample computation?

  6. Anonymous says:

    Hi Sir, can you please clarify or give example kung paano po yung computation? Kakuha ko lang po kasi ng ESAV pero sobrang liit nung nagrereflect na value ng dividend compared sa 7.41% na nakalagay dito sa page. Medyo nakakagulo lang po kung paano ba yung tamang computation. Thanks.

    • Admin says:

      Can you give us details on how much you saved, when, and how much dividends you got? I will try my best to comprehend how much you got. Worst case scenario, you’ll need to call Pag-Ibig to get their explanation.

  7. Edward says:

    Good day Sir! How do you compute for the declared dividend rate?

    For example Sir, nagstart ako maginvest ng January 2017 with a total savings of 10,000 pesos by December 2017, then ang declared nilang dividend rate is 8% for 2017, so yung 10,000 pesos ko is magiging 10,800 na based on 8% dividend rate?

    Thank you!

    • Admin says:

      More or less po ganun ang estimate. Pero the more correct way is to compute yung balance of savings on a monthly basis then prorated yung interest. Yung naka full year lang balances (Jan to Dec) yung 8%, then if nag-add kayo ng savings by May or June, fraction of 8% lang yung kikitain nun. Parang sa bank na average daily balance yung basis.

  8. There is however an issue upon redemption of MP2. Pag-ibig is still not automated in terms of records consolidation. Consider a lead time of 1-3 months after you filed the withdrawal.

  9. PP Gal says:

    Is it a requirement to save at least Php 6,000 annually for the savings to earn interest?

    • Admin says:

      Yup, based on flyers and inquiries, the minimum target annual investment is 6000 since the minimum per month is 500. It doesn’t have to be monthly of 500, it can be less frequent as long as it totals to at least 6000 on an annual basis.

      • Anonymous says:

        You dont need to complete 6000 pesos annually.. minimum of 500 pesos refers to members minimum payment/investment he/she should deposit to MP2.’..No need to contribute every month, Contribute anytime you want it is like a savings account in a bank but should be 500 pesos and up.

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