All You Need to Know About Modified PAGIBIG 2 Fund (MP2)

Modified Pagibig 2 Fund

Finding a safe way to invest your hard earned money has always been a challenge. PAGIBIG has provided a safe invesment product that offers good returns for its members. PAGIBIG MP2 is a voluntary investment program that offers better return than what your compulsory PAGIBIG contributions provide.

The program took effect on February 3, 2010 and it has been providing good returns to its investors. Let us examine the MP2 program in detail and find out what it has offer.

Who are eligible?
The MP2 program aims to provide a safe investment alternative with good returns to qualified individuals. Interested investors must be a Pag-IBIG I member. The investor must have a gross monthly income exceeding Php 5,000.

Modified 2 Tax free savings sample computation

Minimum Investment
The minimum voluntary contribution for the MP2 is Php 500.00. There are no penalties or forfeiture for missed payments.

Maturity and Redemption
The MP2 matures after 5 years. Upon maturity the member has the option to withdraw the savings plus dividends or renew for another 5 years. Renewal is not automatic and dividend rate after maturity will be equal to MP1. If funds are not withdrawn or renewed after two years. The funds will no longer earn any dividends.
Information on PAGIBIG MP2

Early Redemption
- Insanity
- Total Disabilty
- Unemployment due to sickness
- Death

MP2 account are backed and guaranteed by the government. All earnings from the MP2 are Tax Free. Under RA 9679 the Total accumulated value (TAV) will not be charged a 20% withholding tax.


MP2 members can pay their monthly contribution at any PAGIBIG branch. Members can also request their employers to automatically deduct their monthly contribution from their salary.

Historical Return for PAGIBIG MP2
Historical Dividend Rate

Final Thoughts
The PAGIBIG MP2 is a great alternative to other investment products. It offers higher yields compared to time deposits. The minimal monthly contributions make it affordable to a lot of people. Although it does not offer potential returns as high as what you can earn from stocks, the MP2 makes up for its average return through consistency and safety. The low monthly contribution and consistent returns are perfect combination to encourage most filipinos to start investing and prepare for their future.

Registration form for PAGIBIG MP2
MP2 Registration Form

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