Updated April 28, 2024:
Both SSS Flexi-Fund and Modified Pag-ibig 2 (MP2) are savings programs offered by government agencies.
Both offer interest rates higher than those offered by banks for savings accounts and time deposits.
Both programs are guaranteed by the Philippine government.
Both are tax-free. Total savings plus their dividend or interest earnings are tax-free.
Both are SAFE savings plans. You will never lose your money in case you lose your job or business and you are not able to continue making your monthly payments. With many pre-need and insurance investment plans, you will lose all or a big portion of your money if you fail to continue paying.
Here are the differences between the 2 programs:
Membership:
MP2 is offered to all Pag-ibig 1 members.
Flexi-Fund is offered ONLY to OFWs who are SSS members.
Minimum Monthly Contribution:
The minimum monthly savings amount for MP2 is 500 pesos.
The minimum for Flexi-Fund is 200 pesos.
Maximum Contribution:
There are no maximum limits. You can contribute up to several millions, as long as you have earned these millions legally.
For MP2, any contribution of 500,000 pesos or more, you need to pay it via personal or manager’s check. And before paying your first contribution of 100,000 pesos or more, or once your savings get to 100k pesos, submit your proof of income, or proof of source of money.
Mandatory or Regular Savings and Optional Savings:
Under MP2, you need to continue paying at least 400 pesos to Pag-ibig 1. Puede pang 200, kasi pinag-uusapan pa kung itutuloy ang increase.
Under Flexi-Fund, you need to continue paying the maximum monthly contribution, which is now 2,800 pesos (effective January 2023).
Member Nos.:
For Pag-ibig, you have 2 different Pag-ibig nos: one for MP2 and another for Pag-ibig 1.
For SSS, you use the same SSS no. for regular SSS and for Flexi-Fund.
Payment:
You pay MP2 and Pag-ibig 1 contributions separately. Remember, you have 2 different account numbers.
You pay Flexi-Fund and regular SSS contribution as one item in a single receipt. SSS will be the one separating your payment. It will post 2,800 pesos to your regular SSS account, and will credit the excess to your Flexi-Fund account.
Pay at least 3,000 pesos (2,800 for your regular SSS account + 200 for your Flexi-Fund).
If you want to save more on Flexi-Fund, for example, you want to contribute 1,000, pay 3,800 pesos (2,800 for your regular SSS and 1,000 for your Flexi-Fund).
If you want to save 2,000, you pay 4,800 (2,800 for your regular SSS and 2,000 for your Flexi-Fund).
Term of Savings:
For MP2, the term is 5 years. After 5 years, claim your total MP2 savings and dividends, and if you like, put it in a new MP2 account. If not claimed, your MP2 money will earn the regular Pag-ibig dividend rate for 2 years, afterwhich there will be no more dividends.
For SSS Flexi-Fund, choose a term of any number of years, from 1 year to 30 years.
Earnings Rate:
For MP2, the dividend rate is decided by the Pag-ibig board every year, based on total Pag-ibig earnings the past year. MP2 is always higher than that given to P1 contributions. In 2010, the dividend rate for MP2 was 5.5% and the rate for Pag-ibig 1 was 5%.
In 2023, the dividend rate for MP2 was 7.05% and the rate for Pag-ibig 1 was 6.55%.
You can find dividend rates for other years here.
For SSS, the interest rate is also repriced and quoted every year. It is based on the current average 91-day Treasury bill rate.
Example of Earnings shown at the Pag-ibig and SSS websites:
| Monthly | Total in | Total | TOTAL | |
| Savings | 5 years | Dividends | SAVINGS | |
| MP2 | 2,000 | 120,000 | 19,687 | 139,687 |
| FF | 2,000 | 120,000 | 19,876 | 139,876 |
So if you can just save 5k a month for 5 years while abroad, you can see about 350,000 in your account the day after you arrive at the Manila airport.
One-Time Deposit:
Yes, you can make a one-time deposit for both MP2 and Flexi-Fund.
SSS Flexi-Fund has a One-Time Deposit option, just like a time deposit at a bank. You can contribute 100,000 pesos or more as a one-time deposit.
You Can See your Money Growing:
For Flexi-Fund, enroll in Online SSS, so you can see your Flexi-Fund contributions anytime online. You can also use your mobile SSS app.
For MP2, you can monitor your savings via your online Pag-ibig account or your Virtual Pag-ibig app.
Withdrawal:
Under MP2, you can withdraw your money anytime before your 5-year term. This is called pre-termination. But only for valid reasons, like permanent migration to another country, total disability or loss of job due to health reasons.
Flexi-Fund is also flexible — you can withdraw anytime, in full or in partial amount.
But if you withdraw savings that have stayed with SSS for less than a year, you will be charged with pre-termination fees (10% or 20% of net earnings).
How to Start:
For SSS Flexi-Fund, fill up the OW-1 form and submit to the SSS Representative at the Philippine consulate where you are, or send to the SSS address written in the form:
SSS
International Operations Division
SSS Building, East Avenue, Diliman, Quezon City
1100 Philippines
If you’re in the Philippines, you can submit your OW-1 form at any SSS branch. Bring your Overseas Employment Certificate (OEC) and IDs.
For MP2, enroll at the Pag-ibig website: pagibigfund.gov.ph, click E-Services, then MP2 Enrollment.
If you don’t have yet a Registration Tracking Number or POP Temporary Number, get first your Transaction no. and Pag-ibig MID No. by going back to E-Services, click Membership registration.
Note:
For members of POP (Pag-ibig Overseas Program — the original US dollar, Canadian dollar and peso savings program for immigrants, OFWs and other types of overseas Filipinos), you can continue saving under this POP program, or you can also start saving under MP2.
POP members can stop their POP membership as long as they have completed paying their housing loans taken under POP.
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