Saving Money with Modified Pag-ibig II — Higher Earnings, Government-Guaranteed

Updated April 1, 2015

You want to save and grow your money?  Modified Pag-ibig II (MP2) is a great savings plan.  It has advantages over regular savings accounts, time deposits, or pre-need plans.


What are the advantages of Modified Pag-ibig II?

1.  Guaranteed by the Philippine government.

Your savings will not be lost. Your savings are guaranteed by the Philippine government.  Pag-ibig Fund will not vanish like the pre-need firms mismanaged by families who never returned what the planholders sacrificed to pay over many years.

2.  The interest rate is much higher.

In April 2010, the annual interest rate for Modified Pag-ibig II was 5.5% — much higher than savings account rates that are usually between 0.5% to 1.75%. MP2 earnings are not taxed. Interests on savings accounts are taxed.

The Pag-ibig board can also declare an interest rate of more than 5.5%.

If you look at time deposits, rates range from only 1.75% for deposits of at least 10,000 pesos to 2.75% for at least 5 million pesos.
There’s a 5% interest rate, but this is only given to time deposits of at least 1 million pesos and should not be withdrawn within 5 years.

Another thing, bank savings accounts are accessible — you can withdraw them anytime.

They also have maintaining balance requirements, and if you are not able to comply, instead of saving money,  you lose 300 pesos to 500 pesos or more for each month you fall below the maintaining balance.

The MP2 interest rate can go up, if the Pag-ibig board sees that Pag-ibig earned much more for a certain year.

Look at this Pag-ibig table of expected earnings; 6%  was used as annual interest rate:


Monthly Savings Total Savings After 5 Years (at 6%)
500 pesos 34,922 pesos
1,000 69,844
1,500 104,765
2,000 139,687
5,000 349,218


3.  Interest earnings for MP2 are tax-free.  No tax deductions.

For time deposits,  there’s a 20% withholding tax on the interest income, except for 5-year tax-free time deposit products. The same with savings accounts, there’s also 20% withholding tax on the few pesos earned as interest.

4.  Low monthly minimum savings amount, which is 500 pesos per month. Affordable.

You can increase your monthly MP2 savings anytime.

5.  All your savings are still yours, even if you missed paying for some months, or if you’re unable to continue contributing to the program.

If there are gaps in your contributions, you are not penalized. You get back all what you’ve saved, plus your dividend earnings.

With pre-need, your 50k, 100k, 150k savings or more are forfeited (mawawala sa yo parang bula) if you’re not able to complete your plan, even if your reason is valid. You signed the contract, and the forfeiture policy is in that contract. If you pre-terminate early, you get nothing back. If you pre-terminate after 3 or more years, you get only a little of what you’ve paid.

6.  You CANNOT withdraw your Pag-ibig savings anytime.  This is great, in the sense that you cannot just withdraw to buy a useless gadget on sale.  Your friend or relative cannot also force you to withdraw so they can borrow —  “Ay sori talaga, nasa Pag-ibig kasi savings namin eh, hindi puede iwidro.”

7. You CANNOT borrow it.  There’s no loan program for MP2 members.  The short-term loan program is only for the mandatory Pag-ibig I program.  Again this is good — your savings remain untouched.

8. Available for withdrawal after 5 years. Oh ayan, puede nang iwidro! For tuition, or for a house and lot downpayment, or outright property purchase, or business capital.

If you like to save more, you can keep on adding to your MP2 by renewing it for another 5 years.

Who can save with Modified Pag-ibig II?

Anyone who is already a member of Pag-ibig I.  You should first become a Pag-ibig I member, as Pag-ibig I is mandatory. Pag-ibig II is voluntary.  You can be an MP2 member whether you’re a land-based OFW, seaman, employee, self-employed or business owner.

How do we start saving with Pag-ibig II?

Apply for your MP2 account no. online at

Or visit any Pag-ibig branch with your IDs and apply for Modified Pag-ibig II membership.  Fill out a Modified Pag-ibig II Registration Form (MP2RF).  You can start with 500 pesos, or go ahead with 5,000 pesos.


If you’ve reached your MP2’s 5-year term, and you want to renew it, contact Pag-ibig and renew it, otherwise, the interest rate for your MP2 savings will be the same as Pag-ibig 1, which is a bit lower than MP2.

Saving Money with Modified Pag-ibig II


Add a Comment
  1. so that means we’re not required to withdraw at maturity date, as long as we renew so it will earn more? thank you so much ms nora?

  2. Hi erda, yes, this renewal instruction is in the Terms and Conditions section of the MP2 enrollment form. Thanks too

  3. have you got any information on how to pay MP2 online? the current online services is for MP1 only.

  4. Hi Juan, you can use This is owned by Ventaja, a Pag-ibig-affiliated remittance firm. PayPilipinas is mentioned by Pag-ibig here. You register first, then fund your PayPilipinas account through your credit card or through your online banking (affiliated banks are Bancnet banks, BPI, ChinaBank, Metrobank, PNB and RCBC). After funding, you can now pay MP2 through PayPilipinas.

  5. Thanks Nora. i will check this service and shall get back to you with my feedback. i may as well share my experience to you to further help my fellow OFWs. cheers to your site!

  6. Hi Juan, that’s so nice of you. Look forward to your feedback. Yes, your experience will surely help other OFWs. There are really a lot asking about these things. Thanks again, and your good comments mean a lot to me as a blogger.

  7. Good Morning. It’s been 5 years. I wish to withdraw my PagIBIG 2. Is there a downloadable form to apply for withdrawal, and what are the required documents that need to be attached to the application for withdrawal of PagIbig2. Is there also a downloadable form if I want to continue PagIbig2 even though I will withdraw my 5-year savings right now? Thank you.

  8. Can I make one lump sum investment of p50, more monthly for 5 years.
    I am 60 and will retire and stop pagibig contribution.can i apply in mp2

  9. Hi maris victoria, yes, you can invest in MP2, but it’s required that you continue contributing to your Pag-ibig 1 account while saving in MP2. When paying the 50k, tell the cashier, it’s for Oct to Dec 2015. This means you pay Pag-ibig 1 for Oct to Dec too. You can enroll in Pag-ibig 2 online.

  10. I have mp2 account po. I’m here in kuwait. I’ve been asking my sibling to make payments for me to my account. Is there no passbook? Can i check it online? I started po this year last march.

  11. Im an OFW and tried using Paypilipinas to pay for MP2. (Using USD as currency for card transaction) They charge 4% and 50 Php for fees each time you transact to them. If Pagibig2 offers 5.5% gain then its almost nothing you gain since you have already been at lost for lower dollar conversion. Nagcompute ako I have to pay them total of 5,252.00 for 5000 MP2 savings and then I can have 5,275.00 back from pagibig2(if 5.5% profit. Since I was already at loss for lower dollar conversion rate so for me it does not make any sense. Anong opinyon nyo? By the way I have made a BLOG sharing my experience with My intent is to share to my fellow OFW who are looking for payment options online. Go to this link –

  12. Hi rei, I read your post, and it was great. Lots of info from your actual experience. I wanted to comment below your post, but I couldn’t see the comment box; what I see is an instruction that I needed to login, and of course, I can’t login into your own WordPress account. A year ago, one OFW commented about paypilipinas, and he recommended it; maybe the process changed. And maybe what you experienced is the major reason why paypilipinas is not growing as fast as it should. I’ll get back to you if I find something better.

  13. Hi Ms.Nora, when will i get my TAV (total accumulated value), the month after the completing the 5th year or i will have to wait for another 5 years?

  14. Hi Lovell, you can get your MP2 savings after 5 years. You can claim the day after 5 years, or within the week after 5 years. If you like to save more, renew the term of your MP2 savings for another 5 years. For Pag-ibig 1 savings, you can claim this after accumulating 240 contributions (you should be 45 or older) or at age 60.

  15. Im very interested po… Im a callcenter agent and would like to save up for a future project can the company pay for this for me or do i have to pay for this personally?

  16. Hi Ariel, I’m glad you want to save. MP2 is optional, so your employer is not mandated to collect and remit for you. If your employer gives this service as an additional benefit to employees, then it’s nice, but if not, then you yourself will have to make your payments at your branch. Register first at your branch to get your MP2 account no. and to make your first payment at your branch, and then you can make your succeeding payments at Bayad Center or through GCash.

  17. Good evening poh…how to pay MP2 thru remittance center? Should i just present my MP2 number? Tnx in advance….

  18. Hi Jennifer, yes, write your name and Pag-ibig MP2 account number, and other personal and contact info required by the remittance center. Send through the remittance partners of PNB, Asia United Bank, I-Remit and Ventaja. Will post the link later

  19. Ms Nora is the interest rate po of pag-ibig MP2 monthly or for the whole year? I just registered as member. thank u.

  20. Hi Amycar, the dividend rate is per year. Your dividends for the year will be added to your total savings for the year every Dec 31.

  21. hi ms. Nora, I would like to request for an email of the updated table(monthly contribution e.g. 500,1000 etc. with its corresponding earning). Can I pay it in a lump sum? Will the hdmf modify me if it is already 5 years and can get my money?

  22. Hi mrs nora, how to pay mp2 savings of our employees? we use the system to remit their mandatory contributions, can we integrate the MP2 remittance in the existing system?

  23. Hi Chris, sorry I’m not working with Pag-ibig. I just write about Pag-ibig. I don’t know if Pag-ibig is emailing list of contributions. What I know is you have to visit your Pag-ibig branch with your ID and request for a copy of your TAV (Total Accumulated Values). If you’re OFW, you can check your earnings online at Pag-ibig Fund and click OFW Member’s Contribution Verification. If your MP2 savings account has reached 5 years, you can claim it, and if not, renew it so it continues to earn at the MP2 dividend rate. You can also open another MP2 account. A member can have more than one MP2 accounts. Yes, you can pay in lump sum, but spread it out through the same year, to earn more dividends. For example, if you pay your lump sum this November, pay it as your payments for Oct, Nov and Dec 2015.

  24. Hi Ma Wilma, the fastest way will be to visit your Pag-ibig branch with your ID, fill up the MP2 registration form, and make your first payment there at the branch. If you are busy, you can register online to get your MP2 account no. Go to: Pag-ibig MP2 online registration page, scroll down. If you don’t have a security code, click “No Pag-ibig MID” even if you have this, so that what you will enter is your Registration Tracking No.

  25. Hi Kenneth, yes, but I think they’re compounding yearly. I looked at my past records, and the dividends were credited yearly, at the end of every year.

  26. Hi ms.nora. you,mentioned that its fine even if i missed a monthly payment. If ever i have my money to pay for it, can i still pay for the missed payment? Thank you

  27. Hi Ray, sorry, no, if the missed month is too far back. But I think, yes, you can, if you’re paying one whole quarter that includes the month you missed. For example, this month is November and you missed paying Oct — you can pay Oct to Dec 2015. But since Pag-ibig dividends are credited annually (your dividends will depend on your total savings as of every Dec 31), and your monthly payments need not be the same amount (you can increase or decrease), you can increase your payment for the current month to compensate for the month you missed.

  28. Hi Ray, yes, the bigger monthly savings, the better. MP2 does not have a maximum limit. It’s the SSS PESO savings scheme that has a maximum limit.
    You can even have another MP2 account if for example, you want another account to mature on a later year.

  29. hi, Can I still pay my P2 savings for the months I missed paying? say today is november 2015, can I pay for September to October 2015?

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