M2

MP2 Savings Calculator

Pambansang Pagtitipid

Free Pag-IBIG MP2 Savings Calculator

Use this free MP2 savings calculator to project how much your Pag-IBIG MP2 investment can grow over time. Simply enter your planned monthly contribution, investment period, and expected annual dividend rate to see your projected total savings, tax-free dividends earned, and a year-by-year growth breakdown.

The Pag-IBIG MP2 (Modified Pag-IBIG II) is a voluntary savings program offered by the Home Development Mutual Fund (HDMF) in the Philippines. It is one of the safest and highest-yielding savings options available to Filipino workers, OFWs, and self-employed individuals. MP2 savings are government-guaranteed and all dividends are 100% tax-free under Republic Act 9679.

Since 2010, MP2 has consistently delivered annual dividend rates between 5.03% and 7.73% — significantly higher than regular bank savings accounts (0.10%–0.25%) and time deposits (1.5%–4.0% before tax). The most recently declared MP2 dividend rate is 7.03% for 2025, making it one of the best low-risk investment options in the Philippines today.

Tax-Free DividendsGovernment-Guaranteed5%–7.73% Annual ReturnsPHP 500 Minimum
Monthly Contribution₱1,000
₱500₱20,000
Investment Period5 years
2 yrs10 yrs
Expected Annual Rate7.0%
4%10%

Total Saved

₱60,000

Dividends Earned

₱11,424

Tax-free!

Savings Breakdown

Contributions 84%Dividends 16%

Grand Total After Maturity

₱71,424

+19% return on your contributions

Projected Growth

Year-by-year
Contributions
Dividends

MP2 Historical Dividend Rates

2019

7.23%

2020

6.12%

2021

6.00%

2022

7.03%

2023

7.05%

2024

7.10%

2025

7.12%

Source: Pag-IBIG Fund official announcements

Frequently Asked Questions About MP2 Savings

What is MP2 Pag-IBIG savings?
MP2, or Modified Pag-IBIG II, is a voluntary savings program offered by the Pag-IBIG Fund (HDMF). It provides higher dividend rates than the regular Pag-IBIG savings program. MP2 is government-guaranteed with tax-free dividends, and has historically yielded 6–9% annually — significantly higher than bank savings accounts or time deposits.
How much can I earn from MP2 savings?
Your MP2 earnings depend on your monthly contribution, investment period, and the annual dividend rate. For example, saving ₱1,000 per month for 5 years at a 7% annual rate can grow to approximately ₱72,000+. Use the MP2 savings calculator above to project your exact returns based on your own numbers.
Is MP2 savings tax-free?
Yes, MP2 dividends are 100% tax-free. Unlike bank savings and time deposits which are subject to a 20% withholding tax on interest, all earnings from your MP2 Pag-IBIG investment are completely exempt from taxes. This makes MP2 one of the most tax-efficient savings vehicles available in the Philippines.
What is the minimum MP2 contribution?
The minimum monthly contribution for Pag-IBIG MP2 is ₱500. You can contribute any amount above this, with many members choosing to save ₱1,000 to ₱10,000 per month depending on their budget. There is no maximum limit for total MP2 savings, making it flexible for all income levels.
How do I enroll in MP2 Pag-IBIG?
You can enroll in MP2 online through Virtual Pag-IBIG at online.pagibigfund.gov.ph. Simply log in to your account, select MP2 Savings, choose your desired contribution amount and payment schedule, select a payment method (over-the-counter, online banking, or salary deduction), and submit your application. You must be an existing Pag-IBIG member with at least one month of regular savings contribution.
How does MP2 compare to bank savings and time deposits?
MP2 consistently outperforms traditional bank savings (0.1–0.5% annual interest) and time deposits (4–6% annual interest). With MP2’s historical 6–9% annual dividend rate and zero taxes on earnings, your money grows significantly faster. Bank deposits are also subject to a 20% withholding tax on interest, further reducing your actual returns compared to MP2.
What is the MP2 dividend rate for 2025?
The MP2 dividend rate for 2025 is 7.12%, continuing the program’s strong track record of competitive returns. Historical MP2 rates have ranged from 6.0% (2021) to 7.23% (2019). The dividend rate is declared annually by the Pag-IBIG Fund Board of Trustees based on fund performance.

Understanding Pag-IBIG MP2 Savings

What Is Pag-IBIG MP2?

Pag-IBIG MP2 (Modified Pag-IBIG II) is a voluntary savings program managed by the Home Development Mutual Fund (HDMF), commonly known as Pag-IBIG Fund. It was created to give Filipino workers an additional savings vehicle with higher dividend rates than the mandatory Pag-IBIG savings (MP1). Any active Pag-IBIG member can open an MP2 account — including private employees, government employees, self-employed individuals, freelancers, and Overseas Filipino Workers (OFWs).

MP2 has a 5-year maturity period, during which your contributions earn annual compounding dividends. At maturity, you can withdraw your full savings (principal plus all dividends) or roll over for another 5-year term. The minimum contribution is just PHP 500, and there is no maximum limit — making MP2 accessible to savers at every income level.

Why Choose MP2 Over Other Savings Options?

MP2 stands out because of its unique combination of high returns, tax-free status, and government-backed security. Here is how it compares to common alternatives available in the Philippines:

  • ✓vs. Bank Savings Accounts: Regular bank savings earn only 0.10%–0.25% per year, subject to 20% withholding tax. MP2 earns 5%–7.73% with zero tax — over 30x more effective returns.
  • ✓vs. Time Deposits: Time deposits offer 1.5%–4.0% gross interest, reduced to 1.2%–3.2% after the 20% withholding tax. MP2 delivers up to 7.73% tax-free with government guarantee.
  • ✓vs. UITFs and Mutual Funds: While market-linked funds can offer higher returns in good years, they also carry the risk of losing money. MP2 provides competitive returns (averaging 6.15% over 16 years) with absolutely no risk to your principal.

How to Get Started with MP2

Getting started with MP2 is simple. You can enroll online through the Virtual Pag-IBIG portal at pagibigfund.gov.ph, or visit any Pag-IBIG branch in the Philippines. You will need an active Pag-IBIG membership (MID number) and a valid ID. Contributions can be made through online banking, e-wallets like GCash and Maya, over-the-counter at SM Business Centers and Bayad Centers, salary deduction, or remittance partners for OFWs.

Read the Complete MP2 Guide →|How to Enroll Online →|View All FAQs →

MP2 Historical Dividend Rates

The MP2 dividend rate is declared annually by the Pag-IBIG Fund Board of Trustees based on actual investment performance. Here are the most recent declared rates:

2025
7.03%
2024
7.73%
2023
7.03%
2022
5.61%
2021
6.01%
2020
6.12%
2019
7.23%
2018
7.41%

The 16-year average MP2 dividend rate (2010–2025) is approximately 6.15% per annum.View complete rate history →