Home GUIDE: Pag-IBIG MP2 Dividend Rate

GUIDE: Pag-IBIG MP2 Dividend Rate

Pag IBIG MP2 Dividend Rate

Estimated reading time: 5 minutes

As a voluntary savings program, the Pag-IBIG MP2 provides its members with competitive interest rates and dividend payments. Over time, the program has gained popularity due to its high returns. However, the dividend payout varies each year and depends on factors such as the program’s financial performance and market conditions. Find out more about the Pag-IBIG MP2 Dividend Rate in this blog.

What is Pag-IBIG MP2?

Understanding Pag-IBIG MP2’s dividend rate is important before discussing how it operates. For members of the Home Development Mutual Fund, the Pag-IBIG Multi-Purpose Loan Program 2 (MP2) is a long-term savings plan (HDMF). Members receive an excellent annual return of 5% on their assets, which they can withdraw as dividends or reinvest for higher earnings.

The Benefits of Investing in Pag-IBIG MP2



One of the primary advantages of investing in the Pag-IBIG MP2 is its high-interest rate of 5%. This rate surpasses that of typical savings accounts. This feature makes it a desirable investment opportunity for individuals seeking better returns. Additionally, participants in this program are qualified to receive dividend payments once a year. This implies they won’t have to wait too long to get extra money.

The Dividend Rate of Pag-IBIG MP2

The current dividend rate of the Pag-IBIG MP2 in 2023 is 6.0%

Check out the past dividend rates from 2011 to 2021 below:

20216.00%
20206.12%
20197.23%
20187.41%
20178.11%
20167.43%
20155.34%
20144.69%
20134.58%
20124.67%
20114.63%

The Pag-IBIG Fund’s Board of Trustees decides the dividend rate, commonly known as the interest rate, for the Pag-IBIG MP2 program depending on the fund’s performance. It’s crucial to check the current interest rate before investing because it may fluctuate occasionally. Although the interest rate for the MP2 program was higher than the regular savings program offered by the Pag-IBIG Fund, it is essential to note that the interest rates for both programs may fluctuate over time.



Pag-IBIG Fund designed the MP2 program as a savings program for long-term use, not for short-term investments. When making investment decisions, it’s important to consider more than just the interest rate. To determine if this program is suitable for your financial goals, it’s advisable to seek advice from a financial advisor.

How is the MP2 Dividend Rate Calculated?

The Pag-IBIG Fund, the government agency that manages the MP2 Savings Program, calculates the MP2 dividend rate based on its earned investment income. The formula for calculating the MP2 dividend rate is as follows:

MP2 dividend rate = Total investment income earned by the Pag-IBIG Fund / Total MP2 savings for the year



The total investment income earned by the Pag-IBIG Fund includes various sources of income, such as interest income from loans and investments, rental income from real estate properties, and other forms of investment income. The total MP2 savings for the year refers to the aggregate amount of savings made by all MP2 savers for a particular year.

When Will You Receive Your MP2 Savings Dividends?

You can choose to receive your MP2 Savings Dividends via the following options:

  • Upon full withdrawal of your MP2 Savings after its 5-year maturity period with your MP2 Savings Dividends compounded annually;
  • Through annual payout with your MP2 Savings Dividends credited to your savings or checking account enrolled in any of Pag-IBIG Fund’s accredited banks.
  • The Pag-IBIG Fund will release the MP2 Savings Dividends to overseas members or those without a Philippine bank account via a check if they opt for an annual dividend payout.

Consequences of Not Claiming Your MP2 Savings After Maturity

The Pag-IBIG Fund will transfer your MP2 savings to its unclaimed dividends account if you do not claim them after maturity. The unclaimed dividends will continue to earn dividends, but you will no longer have the right to claim them. To avoid this, it is vital to claim your MP2 savings promptly after maturity to ensure that you receive the full benefit of your investment.

Withdrawing MP2 Savings Before Maturity: What You Need to Know

You may pre-terminate and withdraw your MP2 Savings prior to its 5-year maturity based on the following reasons:

  • For active Pag-IBIG members:
    • Total disability or insanity
    • Termination from employment due to health reasons
    • Retirement
    • Permanent migration to another country
    • Unemployment due to layoff or company closure
    • OFW repatriation from the host country
    • Death of the MP2 account holder, with the MP2 Savings to be received by the member’s beneficiaries
    • Critical illness of the MP2 account holder or an immediate family member, certified by a licensed physician, and subject to approval by Pag-IBIG Fund.
  • For Retirees and/or Pensioners:
    • Total disability or insanity
    • Death of the MP2 account holder, with the MP2 Savings to be received by the member’s beneficiaries
    • Critical illness of the MP2 account holder or an immediate family member, certified by a licensed physician, and subject to approval by Pag-IBIG Fund.
    • Other meritorious grounds as may be approved by the Pag-IBIG Fund Board of Trustees
  • For members with compounded dividend payout on their MP2 Savings:
    • Principal MP2 Savings;
    • 50% of the total dividends earned from prior years; and
    • 50% of the dividends for the current year, which shall be released after the dividends for the said year have been declared and credited.
  • For MP2 Savings with annual dividend payouts
    • Principal MP2 Savings, with 50% of the total dividends received from prior years to be deducted from proceeds; and
    • 50% of the dividends for the current year, which shall be released after the dividends for the said year have been declared and credited.

Final Thoughts

The MP2 dividend rate offers an attractive opportunity for Pag-IBIG Fund members to earn higher returns on their savings. By taking advantage of this program, members can enjoy the benefits of a government-backed investment with guaranteed tax-free dividends. 

However, it is important to consider your financial goals and risk tolerance before investing in MP2 savings. As with any investment, conducting thorough research and consulting with a financial advisor is vital to make an informed decision that aligns with your financial objectives. –WhatALife!/Jayve


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