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

Updated January 11, 2013
Puede mo nang iwidro ang total Pag-ibig 2 savings mo earlier than your maturity date.

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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.

pag-ibig-II-save-money

What are the advantages of Modified Pag-ibig II?

1.  Guaranteed by the Philippine government.

Hindi nawawala parang bula, kagaya ng nangyari sa maraming pre-need firms na mismanaged by families na hindi na naawa sa mga planholders nila.

2.  The interest rate is much higher.

As of April 2010, the annual interest rate for Modified Pag-ibig II was 5.5%, walang tax, and much higher than savings account rates na usually ay between 0.5% to 1.75% lang. Bukod sa mababa na ang interest ng savings account, mababawasan pa ng withholding tax.

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

Sa time deposits naman, rates range from only 1.75% for deposits of at least 10,000 pesos to 2.75% for at least 5 million pesos.
Merong 5% na interest rate, pero ito ay ibinibigay sa mga at least 1 million pesos na hindi gagalawin for 5 years.

Isa pa, sa savings account, instead na saving money, ang ilan ay nalulugi pa, kasi madalas nababawasan ang savings dahil nagwi-widro sa ATM ng ibang bank at hindi name-maintain ang required balance.

The interest rate can go up, if the Pag-ibig board finds time to feel more generous dahil lumaki ang kita ng Pag-ibig.

Yong recent Pag-ibig table of expected earnings, 6% ang ginamit nila na interest rate:

Monthly Hulog Total Ipon 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.  Tax-free ang interest earnings ng MP2.  Walang bawas.

Ang time deposit, merong 20% withholding tax sa interest income, except lang sa mga 5-year tax-free time deposits. Ang savings account, meron ding 20% withholding tax sa konting na na-earn na interest.

4.  Low monthly minimum savings amount, which is 500 pesos per month. Puede mong dagdagan.

5.  Your savings are still yours, even if you’re unable to continue contributing to the program.
Sa pre-need, mawawala ang 50k, 100k, 150k mo kung hindi mo naituloy kahit valid ang dahilan, kasi pinirmahan mo yong contract na ganon.

6.  You CANNOT withdraw your Pag-ibig savings anytime. Maganda ito, in the sense, na hindi mo siya magagasto sa kung anu-ano lang. Hindi mo rin siya puedeng iwidro at ipahiram sa nakikiusap.  “Ay sori talaga, nasa Pag-ibig kasi savings namin eh, hindi puede iwidro.”

Update as of January 2013: Naglabas ng bagong circular ang Pag-ibig at sinabing meron ka nang option to withdraw your Pag-ibig 2 savings earlier than your maturity date. Palagay ko, maraming OFWs ang nakiusap na lagyan ng withdrawal flexibility itong savings program para sa mga OFWs na unexpectedly biglang nawawalan ng contract at nangangailangan ng pera.

Puede ring tinutulad nila yong SSS Flexi-Fund, which can be withdrawn before maturity date, but with earnings deduction kapag withdrawn within a year.

7. You CANNOT borrow it.  Hindi puedeng mag-loan dito. Yong sa mandatory Pag-ibig I, doon ka mag-loan.  Advantage itong hindi mo ma-loan, kasi hindi mo magagalaw.

8. Available for withdrawal after 5 years. Oh ayan, puede nang iwidro! Pang-tuition, o pang-down sa house and lot, or pambili na ng bahay.

Kung ayaw mo pa, at gusto mo pang dagdagan, you can keep on saving money 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. Dapat mag-member muna sa Pag-ibig I kasi ito ay mandatory. Ang Pag-ibig II ay voluntary. Puede sa OFW, sa seaman, at sa employee, self-employed or business owner dito.

How do we start saving with Pag-ibig II?

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.

Updates as of January 11, 2013:

-  Meron ka nang option to withdraw your Pag-ibig 2 savings earlier than your maturity date.
- Kapag wala kang isinulat na term ng savings mo, ang default term ay 5 years.
- Kapag sinulatan ka ng Pag-ibig notifying you na nag-mature na ang Pag-ibig 2 savings mo at dapat mo nang kunin or i-renew pero hindi mo kinuha o hindi mo ni-renew, ang magiging interest rate ng savings mo ay yong interest rate ng Pag-ibig 1, which is a bit lower.

Saving Money with Modified Pag-ibig II

94 Comments

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  1. Hi! nag enroll po me sa MP2 pero ayoko po ideduct ito sa sahod ko, ok lng po b na ako na ang maghuhulog neto monthly? ano pong payment ang gagamitin ko upon payment? thanks

  2. Hi Ella, yes, you have that option to pay your MP2 directly, pero I think you can pay only at your Pag-ibig branch (bring your MP2 no.) because Bayad Center accepts only Voluntary payments. SM Business Center accepts only housing loan payments.

  3. Hi po, would like to inquire if i can deposit a lump sum sa P2 or should i deposit on a monthly basis po? And would like to confirm if I can withdraw earlier the maturity, in case i need the money/emergency? Thanks po and more power…

  4. What are other options in paying mp2? Dun lang po ba sa pagibig? Malayo po sa amin. Sana pede sa bayaran sa banko. Thanks and God Bless po

  5. Hello! Required ka ba mag deposit for each and every month? Pano kung may na miss ka. At totoo ba na ang maturity date nya which is 5 years will serve as its expiration na rin? Pano if gusto mo pang magpatuloy. In connection with the latter — sa renewal mo(kung meron man) posible bang mag request ng term shorter than 5 years na default? Thanks!

  6. Hi Jayvee, okay lang kung meron kang missed month. After 5 years at hindi mo na-renew, ang magiging interest rate niya ay yong sa Pag-ibig 1 (a little lower rate). Hindi siya ma-expired o mawala. Bumaba lang ang interest rate. At the beginning of the 5th year, if you’re abroad, email Pag-ibig and ask if you can renew your Pag-ibig through email.
    Ang renewal term ay 5 years pa rin, not lower. If you like, you claim your P2 savings after 5 years and then put in into bank time deposit, so you can withdraw your money when you need it.

  7. Mam nora ask ko lang po.. anu-ano po bang valid id ang kailangan i-submit para makapag apply for MP2. kasi im worried na hanapin sakin ung Unified Multipupose – id ko kasi nawala ung wallet ko kasama ng Unified Multipurpose – id ko.. thank you and have a nice day! :)

  8. Hi Caloy, puedeng SSS or GSIS ID, company ID, voter’s ID, driver’s license or passport. Active member ka ng Pag-ibig 1? Kumuha ka na ng P1 at MP2 number mo sa pagibigfund.gov.ph? Have a nice day rin.

  9. Hi.maam nora, dati po akong ofw at nakapaghulog na ako ng almost 3yrs na sa P1 po.ngayon nais ko pong kumuha ng housing loan at voluntary payment ang gagwin ko. pwede po ba yon? Thanks in advance & have a nice day!!!

  10. Hi Ken, yes, puede. Pero you need to update your contributions para active member ka. And you also need to show documents showing your regular source of income, such as bank statement or passbook, remittance receipts for the past 12 months, or audited business documents or sales commission vouchers. Check these Pag-ibig forms so you can see the required documents:
    https://sites.google.com/site/informationphilippines/pag-ibig-fund-hdmf/housing-loan-application-new
    https://sites.google.com/site/informationphilippines/pag-ibig-forms/pag-ibig-housing-loan-application-not-developer

  11. Ask ko lang po sana kung may dapat pa ba akong gawin after ko mag apply ng pag ibig membership 1 and mp2 ko online? do i need to register sa branch sa pinas or automatic na mguupdate sa system kung saan ako nakatira sa pilipinas? I have my MID # and account number for both. please advise. Thank you.

  12. follo on to my previous comment. I am working abroad. also, i have paid my 2014 contributions online then i paid a certiana mount for a period of 3 months for my MP2 account but i paid it agian to my pag ibig membership 1 account. can i request to transfer the fund to my MP2 account since i have already paid for my pag ibig membership 1 account?

  13. Hi Cristine, okay na ang online registration mo kasi OFW ka naman. You can check later on your data if your Philippine address has been changed. About your payments, you can check them online kung saan na-post. Check from time to time kung hindi pa na-post. About your payment error, you can try emailing Pag-ibig publicaffairs@pagibigfund.gov.ph and write Attention: International Operations Group on the Subject line para alam nila na it’s from an OFW. On the email body, write your transfer request. Write complete details, your name, P1 and MP2 nos, transaction nos., dates paid, amounts paid, name of remittance company and location where paid. Depending on their policies, they might or might not grant your request — your consolation is that the funds you paid are still yours.

  14. Hello Mam Nora, just want to have clarity po regarding sa MP2, Nagpunta na po ako sa HDMF center dito sa lugar namin pero di po kami nagkaintindihan ng representative regarding sa computation ng interest for MP2, let say naghulog po ako sa MP2 for 1st installment ng Php 75,000.00 tas right after a month nagcontinue ako ng 5K monthly until 5 years. Pano po kinukompute yong interest/dividends (example na lang pong 4.5% ang rate through out 5 years)? Correct me if I’m wrong, ang pagkakaintindi ko po currently, the more na mataas ang hulog sa initial years, mas malaki po ang interest na pwedeng kitain kasi base sa sample computation sa top ng page na ito, “future value of an ordinary annuity/ annuity due” ang ginagamit sa pagcompute ng interest. Yong initial na Php 75K ay outright contribution ko po sya (hindi po advance), tas magmomonthly installment pa akong Php 5K. Thank you po.

  15. Hello po, nag enroll na po ako sa Pag ibig II just paying 500 a month, i want to ask lang po if halimbawa ay di ko i-withdraw ang pera ko after 5 years, then after 6 years ay nangailangan ako, is there any deductions from them?

  16. Hi Alexis, based on Pag-ibig TAV computations that I’ve seen, Pag-ibig credits dividends at the end of every year, and not compounded every month or quarter. They multiply the dividend rate for that year to the total accumulated values at the end of the year, which is Dec 31.
    If you pay 75k this March to MP2, and contribute 5k every month until Dec, then your total MP2 savings on Dec 31, 2014 is 75k plus 5k x 9 = 120k. If they declare 4.5% as the dividend rate for 2014, then total dividends would be 120k x 4.5% = 5400. Your total savings as of Jan 2015 would be 125,400. This is only an estimate, as I used a simple computation; they might have another formula. The dividends are still higher than that offered by bank time deposits; we put on time deposit 200k for 2 years and the total interest was 9,465.31 (and this was when interest rates were higher; now they’re down). And with Pag-ibig, you can easily add money every month. What you need to ask Pag-ibig is how fast you can get your total savings when you claim after 5 years. With time deposit, you can get it immediately. With Pag-ibig, you need to file and wait. So maybe you put some in time deposit.

  17. Hi darwin, that’s a good financial decision. No, there’s no deduction. But the dividend rate for that 1 year, the 6th year, will be the same as for Pag-ibig 1, which is a bit lower, based on circular 324.

  18. Hi Maam!
    1) May kaibahan po ba sa magiging dividendo ko kung monthly ako maghulog ng MP2 sa kung one time lang ako maghulog para sa 12 months savings ko? Sinasadya ko pa po kasi sa pag ibig office monthly medyo malayo sa work place ko.
    2) May limit po sa sa bilang ng MP2 account na pwedeng buksan?
    Salamat!
    3) Magkano po yung dividend rate ng MP2 ang idineklara para sa 2013 ?
    Maraming Salamat po!!!

  19. Hi ruth, I’ve read na ang pag-credit ng dividends ay annually; so crediting must be at the end of the year, so lahat ng madeposit mo before the end of the year will be included in the computation. So palagay ko okay lang na mag-contribute ka sa MP2 every quarter. Pero baka magasto mo, so explore paying by Globe GCash
    Ask also Pag-ibig next time you go there if you can pay your MP2 at Bayad Center even if you will not write your member category (meron namang Pag-ibig MID no. and name), kasi Bayad Center accepts only payments from Voluntary members.
    Will answer your other questions later.

  20. Hi. maam,
    Nag-apply po kasi ako ng MPII kaso hindi pa po ata tinatanggap sa Bayad Center ang pagbabayad monthly. Meron pa rin po bang mga BANK na tumatanggap ng bayad sa MPII?

    Thanks,

    josephus

  21. Hi Jojo B, yes, the last time I asked Bayad Center, they’re accepting only Voluntary Pag-ibig payments. Only 2 banks are accepting Pag-ibig payments and only housing loan payments. If you’re a Globe mobile user, you can register with GCash and pay MP2 thru GCash: Pag-ibig payment through GCash

  22. hi, ask q lng po pano malalaman ung status ng monthy payment.macheck b online? a pano kung ngregister aq ng MP2 pero hndi q mahuhulog.
    thanks

  23. Hi joy, sad to say, there’s no online tracking for MP2 yet, unless your category is OFW. Okay lang naman na hindi ka muna makapaghulog sa MP2 kung wala pa.

  24. Hi elvie, dapat puede, but the last time I asked at a branch in the South, they accept only Voluntary mandatory payments. The other branches might accept. If you’re a Globe user, get a GCash account so you can pay MP2 by phone (load at a Globe shop).

  25. Hi Ms. nors,

    Eto po ba if nag start ka na ng 500 pesos tuloy tuloy na 500 na lang.. What if po kasi at a certain time of the year like Pasko na may perang dumarating eh gawin mong 5,000 ang hulog for that particular month?

  26. Hi Sel, yes, you can increase your contribution for any month you have extra money. All contributions are posted to your MP2 account.

  27. Hi Darwin, MP2 is optional, hence companies are not obliged to remit MP2 payments, so ask your HR about their MP2 remittance policy. One advantage of paying it at your Pagibig branch on your own is that you can keep your receipts and can easily make corrections with Pag-ibig later on in case there are discrepancies. If you’re a Globe and Bancnet client, you can pay through GCash http://pagibigfund.gov.ph/payments/paymentfacilities.html but your receipt would be digital — perhaps you can print the digital confirmation through smart phone links.

  28. aah okay!salamat…
    Nga pala Ma’am bukas po ba ang opisina nyo pag Saturday (PAGIBIG Kamias Branch)? Monday to Friday kasi may pasok po ako eh!

  29. Hi Darwin, I think it’s closed. There are only certain Saturdays when they are open. You can authorize someone to transact for you. Others can pay in your behalf.

  30. Hi mam, nag apply po ako ng mp2 sa makati. The person at the counter only gave me a payment order form for membership registration. Byaran ko daw sa cashier tpos ok na. HINDI po ako binigyan ng separate mp2 no. Tinanong ko kng same no lang b ng P1 ang ginagamit, at sbi nya oo. Pakita ko lang daw ung MID card ko at isang no lang daw. Ung application form ko po ay wala din mp2 no. Tama po b ung info na bnigay skin? i felt i was misinformed kaya d ko muna bnayaran. Is it better to just register again online? Bka madoble ung registration ko.

  31. Hi layla, I’m surprised that officer at the branch did not know that Pag-ibig MID (P1) and MP2 are different nos. They should be different because MID savings can only be claimed after 240 contributions while MP2 savings can be claimed after 5 years. Enroll at pagibigfund.gov.ph. Click MP2 Enrollment. You will use your MID or transaction no. to enroll. If you don’t have a security code, click “No Pag-ibig MID No.” so you will need only your transaction no.

  32. Thank you for your help ms nora! I will do that asap. I feel a bit frustrated bec i waited in line for 2 hours only to be misinformed. thank you again for your advice!

  33. Good Evening!

    OFW ako, may P1 MID ako at kelan lang nag enroll ako sa MP2 program online. Gusto kong hulugan yung MP2 account na kung saan ibang number sa P1 account ko. KAya lang sa online payment hindi ma-verify yung MP2 account number “Record not found”, may kailangan pa ba akong gawin para direct na mahulugan ko yung MP2 account online or thru remittance center abroad? Tuloy pa rin akong naghuhulog sa P1 account ko at gusto ko ring mag save thru MP2 program. Please advice.

  34. gud day po ms. nora.pano po kapag nawalan ng trabaho while im enroll in mp2 program kelangan po ba na ituloy ko yong p1 contribution ko,magkano po yon monthly and pwede po ba na anually ang hulog sa p2,how much po minimum anually sa p2?thank you po.

  35. Hi Ms. Nora,gusto ko lang po i-clarify kung ang magkaibang numbers for P1 and P2 ay applicable lang sa OFW’s. Kapag po ba empleyado ng private company, same ang P1 and P2 numbers? Maraming Salamat.

  36. Hi luche, P1 and P2 (or MP2) numbers are not the same, whether one is an OFW or an Employed member. P1 is usually called Pag-ibig MID no.

  37. Hello po Ma’am Nora,
    last year po, May naghulog ako sa MP2, i can not remember kung naka 1000 nako or 500 lang. . . . after that, i stopped na. pano po yun, hindi na po ba pde ituloy yun? or just in case hindi ko na maituloy, ano po mangyayari sa naihulog ko? thanks po!

  38. Hi May, you can continue adding money to your MP2 account, but you should also continue adding to your P1 account. Whether you continue or not, your previous savings are there with Pag-ibig, and you can get all of them later on when you retire.

  39. Hi Ludy, yes, you can request your employer’s HR or accounting dept to deduct your MP2 payments. But this is an optional program, so you cannot force your employer to remit your MP2 payments. If not yet registered with MP2, register first with Pag-ibig online to get your MP2 no. https://www.pagibigfundservices.com/

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