3 Pag-IBIG MP2 Hacks for Advanced Investors

Like Katie Scarlett on Facebook!

I think most of us would agree that Pag-IBIG MP2 is a great investment. It is one of the most popular investment instruments for both OFWs and workers based in the Philippines. Its popularity is due to the fact that Pag-IBIG MP2 is guaranteed by the Philippine government and has a higher dividend rate compared to other safe investments like time deposits, retail treasury bonds, and money market funds

The MP2 is a boon to Filipinos who want their money to grow but are afraid to put their money in other, riskier investments. If you’re one of these people, this post is for you.

I will show you three Pag-IBIG MP2 hacks to help you: preserve your hard-earned money, avoid paying taxes, and at the same time take advantage of the Philippine government’s guarantees and MP2’s comparatively high dividend rates.

Now before we proceed to the exciting part (it is exciting, I promise!), let’s review the basics of Pag-IBIG MP2 since understanding the rules is essential before we can use our hacks.


Pag-IBIG MP2 is a voluntary savings program that allows Pag-IBIG members to contribute and get their money back in 5 years with dividends higher than the regular Pag-IBIG program. This means you can keep your money in a safe investment vehicle within a reasonably long period with earnings higher than regular bank savings accounts and time deposits.

The information in this section is based on the Pag-IBIG MP2 official FAQ published here.

Who are the people qualified to join the program?



  • Active Pag-IBIG Fund Members (both in the Philippines and Overseas Filipinos)
  • Former Pag-IBIG members with a source of monthly income and/or Pensioners regardless of age with at least an equivalent of 24 monthly savings (I assume with Pag-IBIG)

Before you can apply to be a Pag-IBIG MP2 member, you need to be or have been, a Pag-IBIG 1 member in good standing first. 

Pag-IBIG 1 is the government program that allows you to save for retirement through a small monthly contribution and of course, allows you to take out housing loans if you ever need them. If you’re employed in the Philippines, you’re automatically a PAG-IBIG member.

If you’re abroad, you would need to apply to be a member first and make Pag-IBIG 1 contributions. Only then you can apply for Pag-IBIG 2. 

If you are based abroad, you can apply for your Pag-IBIG 2 membership with your Pag-IBIG Fund Services Member Services Desk

There are approximately 22 representatives in Asia-Pacific, Europe, North America, and the Middle East.

Pag-IBIG MP2 Annual Dividends

YearDividend RateInflation Rate
2010-20155.26%0.7% (2015)

To find out how lucrative Pag-IBIG MP2 is for some people, look at the table above. You can see MP2’s dividend rate since its inception compared with the inflation rate of the same year. 

As you can see, the dividends outstripped inflation.

Of course, we should keep in mind that past performance does not guarantee future gains. But we can still use the historical data for our projections. So far, the average dividend rate based on the available data in the past years is 7.053%.

When you compare this rate to the rate of other safe investments like bank savings accounts, time deposits, and retail treasury bonds, you can see that the Pag-IBIG MP2 rate is superior.

Personally, I think Pag-IBIG MP2 is a great way to save for our mid-term goals like:

  • Save up for your kid’s college funds
  • Use the money to start a business
  • Down payment for a house or condominium unit for your primary residence or for rent
  • Dream wedding
  • Take your family on vacation

If you’re an OFW, you should take advantage of Pag-IBIG MP2’s safety and relatively high growth. To learn more about other Philippine government programs that you can benefit from, you can read this post about the 6 Ways to maximize Philippine Government Benefits as a Pinoy Expat.


Now with the basic information out of the way, we will look into the factors that we can exploit to our advantage:

No investing amount limit

The minimum contribution for MP2 is at least P500 per remittance. You can also opt to invest monthly, in non-monthly but regular intervals, or one-time remittance, as long as each remittance is at least Php 500. 

But, and this is crucial: there is no limit on how much you can save

Remember that because this is important for our hack. The only thing you have to think about is that if you’re going to remit more than Php 500,000, you have to do so with a personal or manager’s cheque.


The dividends you will earn will not be taxed, so more money in your pocket. We should always take advantage of tax-free investing.

No limit on the number of Pag-IBIG MP2 accounts you can open

A lot of people are not aware that there is no limit on the number of Pag-IBIG MP2 accounts you can open

While you can only have 1 Pag-IBIG 1 account, you can open an unlimited number of Pag-IBIG MP2 accounts, with their separate account numbers for identification.

Dividends distribution options

You have the option to receive your dividends:

  • Annually through a bank deposit or 
  • At the end of the 5-year period

If you opt to receive the dividends annually, you will receive the total principal amount you invested after 5 years.

If you leave the dividends in your account, it will be reinvested into Pag-IBIG MP2 and will be taking advantage of compound interest.

Guaranteed safe

The Philippine government guarantees your MP2 investments.

Unlike with your bank accounts that are only covered by PDIC insurance of up to Php500,000, the Philippine government guarantees your investment in Pag-IBIG MP2, whatever the amount.

MP2-hacks infographic


Having laid down the foundation of our hacks, we will go to the actual hacks itself. 

The good news is, these are relatively simple to understand and totally legal. And we are not going to use some arcane information; these Pag-IBIG MP2 hacks are just creative application of the rules.

1. MP2 Rollover

Do not limit your Pag-IBIG MP2 investment to 5 years. If you have no planned use for the money, you can:


  • Withdraw your total investments plus dividends from Pag-IBIG
  • Open a new MP2 account
  • Rollover the entire amount, principal plus dividends, to the new MP2 account
  • Wait for 5 years
  • Profit!
  • Repeat process for another 5 years (and another, and another… depending on your investing horizon)

Although it’s not so much a rollover than a rollover with a slight bump in the middle, doing so will allow you to ride the MP2 gravy train for decades.

This method is good for people who will not touch their Pag-IBIG MP2 investments in the next 5-10 years or those with a long-term investing horizon.

For example, if you are not sold on the Personal Equity and Retirement Account (PERA) scheme due to the relatively higher risk, you can put your money here instead.

2. Dividend Harvesting

This strategy works exactly like its name. You invest your money, wait for the annual dividend distribution, and then instead of reinvesting the dividends to MP2, “harvest” it instead.

Dividend harvesting is perfect if you need to have a source of income annually but you also want to preserve the value of your principal. But for this to work, you need to invest bigger sums of money. But if you have at least a million pesos. If you invest at least Php5 million, you can virtually retire.

Let’s take a look at this calculation made by Pag-IBIG based on a one-time contribution of Php 1 million:

The dividend calculations are based on the 2-year average (2017-2018), which is 7.5%

As you can see on the first table, a one-time contribution of Php 1 million will give you Php 75,000 annually in dividends. 

Keep your money in MP2 for 5 years and you will harvest Php 75,000 x 5. At the end of the 5 years, you can get back your original investment of Php 1 million. You will harvest a total of Php 375,000 in 5 years.

Once again, I want to reiterate that this is not a guarantee. Past performance does not guarantee future returns. Future gains may be lower or higher depending on the MP2 fund’s performance.

Of course, when you reinvest the dividends with MP2, it will compound. It will leave you with a higher amount after 5 years compared to when you harvest the money every year. So you should assess whether or not dividend harvesting will be good for you and applies to your particular situation and needs.

People who would opt to dividend harvesting are those who need regular income and want to keep the value of their money. For example:

  • Retirees who have accumulated large amounts and need regular income but are not comfortable with taking risks with their principal.
  • People who achieved FIRE (financial independence, retire early) who want to receive regular income while they’re traveling the world and/or too busy enjoying life.
  • Those who receive or accumulated large amounts (inheritance, lottery winnings, exiting a business) who are not sure yet where to put their money, don’t want to touch it for at least 5 years, but also want to have spending money at the same time.


The amazing thing with this method is even though you will receive money from Pag-IBIG MP2 annually, you will not be taxed at income tax rates because the proceeds are tax-free.

3. MP2 Ladder

This hack is perfect if you need to prepare for expenses due on succeeding years. Here’s how to do it:


  • Open an MP2 account that will mature in the first year of your expected expense (ex: first-year college tuition);
  • The following year, open a second MP2 account that will mature on the second year of your expense (second-year college tuition);
  • On the third year, open a third account that will mature in the third year of your expected expense;
  • And so on… Visually, it looks like the photo below:



It doesn’t matter if you’re going to contribute once or monthly on all your accounts. 

As long as you open 1 account for each year the expense is due AND you fund all the accounts based on how much you need for that particular year.


Now that you have learned about these Pag-IBIG MP2 hacks, you can now then mix and match them depending on your need.

For example, after 5 years of dividend harvesting, you can rollover your money into another 5-year MP2 account to continue enjoying 5 more years of harvesting.

Then do it again. And again.

If you’re investing for retirement, you can keep on rolling over your investments every time it ends.

And then by the time you reach retirement age, enjoy the fruits of your labor by harvesting the dividends of your MP2 investments that have already grown from decades of compounded interest.


These Pag-IBIG MP2 hacks are based on current Pag-IBIG rules and guidelines. If you ever follow any of these hacks, you can rest assured that you’re not breaking the law; these are all perfectly legal and available to everyone.

These hacks are great ways for you to invest with lower risk AND avoid paying taxes on those investments.

Do you have other Pag-IBIG MP2 hacks that you have thought of? Please share in the comments.

Picture of Katie Scarlett

Katie Scarlett

is a personal finance advocate working towards achieving financial independence and early retirement (FIRE).

Read her story here
Follow me on social media

Hello! Thanks for visiting and reading my blog. I use affiliate links to maintain this site. If you believe in what I’m trying to do and to keep the FIRE burning, please consider supporting me by clicking on some links. 

You can also support the site by doing your online shopping through my affiliate links, where I will earn a small commission at no extra cost to you. 

Thank you for your support! 

71 Responses

  1. Thanks Katie for sharing this information…i already started investing in MP2…planning for an early retirement and hopefully be financially independent before my retiring age….Mabuhay!

    1. Hi Rom,

      You’re welcome and good job on investing! MP2 is a great way to achieve financial independence and early retirement especially if you already accumulated a big sum of money.

      1. hi katie, May i ask if just in case pag-ibig defaulted in giving back the principal amount, can they pay thru equity? ( say foreclosed properties). I am asking this because I am planning to put huge amount of money just in case. when my RTB matures.

        1. I would like to know too. Where is terms guarantee principal amount (actual cost) is safe? They simply mention it is government back but no mention of principal amount back.

        2. Thank for sharing the details about MP2. I would like to know if I can apply and deposit my principal through online banking.

  2. Hi Katie, I opened my MP2 account a few months ago just to experiment. Heard about it from FrugalHoney. I opted for an annual dividend payout. Had I opted for compounding payout, does that mean I receive everything (dividend+principal) only at the end of the 5-year period?
    Not sure if I understood the mp2 rules correctly.

    Also, never knew one could open multiple mp2 accounts! I will definitely try to experiment with your laddering method! Did you try out all the hacks you wrote about above? Would love to hear personal experience too as sometimes the written pagibig rules diverge from actual practice. =)

    Appreciate the efforts you put in your posts, by the way. Hope you keep writing!


    1. Hi George!

      If you opt for compounding, you will get everything, principal and dividends, at the end of the 5 years.

      I haven’t tried doing these yet but I formulated the methods after speaking to a Pag-IBIG country representative. Some friends have started the ladder method though. I will interview them eventually. 😀

      Thanks for reading my blog, George!

      Katie Scarlett

  3. Hello Katie. Your hack helped me alot. I have a question. For example, I had my 1st MP2 contribution/savings on March 2015 (eventually it will mature on March 2020). I didn’t had contribution/saving for 2016-2019. I decided to put big amount of money on January 2020. Two month before maturity. Is that possible? How the computation will be?

    1. Hi Khristine,
      Remember that the dividends are computed based on your running balance. Basically, the important thing is how long the money is in your account. If you only contributed a substantial amount towards the end, it will not earn that much anymore since Pag-IBIG will compute based on how long the money is in your account.

      If you want your money to earn more I suggest just opening an entirely new MP2 account, which will have the opportunity to earn for 5 years.

    2. Hi Ms. Khristine, glad to read a comment from someone who actually has opened an MP2 account from years back. May I ask how your experiece is so far? Didi you have any difficulties in claiming your dividends or encountered any other problems so far?

  4. Hi! I’m just new to your vlog and I’m enjoying it very much. I’m an OFW and my husband and I are planning to go back to PH after 5 years. Currently, we have MP2 and savings back home. I’m new in this area of financial literacy that I regrets very much. I know I have so many questions which I’m kindof hesitant and shy to ask. But for starters, my question is, can I withdraw the dividend on the first year, say there’s an urgent expense? If so, can it be done thru online or personally?
    Thank you dear!

    1. Hi Macy,

      Thanks for coming to my blog. Please dont hesitate to ask questions; this is a safe place and I’m building a community with people with interest in personal finance.

      When you open an MP2 account, you need to indicate whether you want to withdraw the dividends or keep it in the account. But you can change it in a Pag-ibig branch. You have to apply personally.

  5. It is good to know that there is someone with the same thoughts I have for the MP2. I am actually planning to do the ladder with annual dividend payout. If you have 4.5M, you can invest 25k monthly for each MP2 acct. You will have a monthly income of 23K. Thank you for sharing.

  6. Curious to learn what people’s experiences with regards to (1) inquiring or monitoring the status of your MP2 account, (2) withdrawal or redemption process for your investment after 5 years, and (3) customer service in case there are discrepancies or problems with your account.

    Also, what guarantees or documentation does PAG-IBIG gives you each time you invest? Do they provide you a certificate? Any other watchouts before investing in MP2?

    1. Elbert,

      Sorry, I just got back to you. Virtual Pag-ibig was recently launched, which is an online platform to monitor your Pag-ibig accounts. Regarding withdrawal, I haven’t experienced it myself but based on feedback from reddit, it seems that the process is fairly easy and reasonably fast.

      Pag-ibig will give you an account number when you open an account, so that’s your reference. No certificate is given.

  7. Great tips! Just recently opened mine as well but just wanted to ask if apart from the dividends being tax-free, are my MP2 contributions non-taxable when you’re an employee similar to regular contributions? Thanks!

  8. Great article/blog. Provides new/unique ways of investing and utilizing every cent we invest 🙂 Thanks

  9. Dear, in the ladder method, I just don’t understand why did you say the maturity is every year? Even if you have 5 MP2’s opened at each year, you will only get it 5 years from the 1st MP2 you opened and ther rest of the 4 will follow. Or you are suggesting to withdraw the dividend each year? Can you pls further elaborate? Thank you. Thinking of doing it by next year.

    1. Hello Macy, from what Katie wrote above, I understand that for the Ladder Method, the maturity is every year starting from the first year of the expected expense.

      So when she said the maturity will be every year, she meant every year starting from the year of the first expected expense.

      1. That’s correct Kim.

        What I meant in the post is that you will time your investment in such a way that you will collect the money on the first year of the expected expense.

        I hope that’s clearer.


  10. hi katie!

    Year Dividend Rate Inflation Rate
    2010-2015 5.26% 0.7% (2015)
    2016 7.43% 1.3%
    2017 8.11% 2.9%
    2018 7.41% 5.1%

  11. Hi Katie!

    Year Dividend Rate Inflation Rate
    2010-2015 5.26% 0.7% (2015)
    2016 7.43% 1.3%
    2017 8.11% 2.9%
    2018 7.41% 5.1%

    I was wondering, how is it computed… I started on January 2018… at the end of the year my total contribution is 44,000.00.. I have checked online that it only earned 1932.78 dividend… 1932.78 is like 4.393% only and not 7.41% as indicated in the table above…

      1. Hi Ms Katie,
        May I have the link about the calculation of MP2 dividends please, if it’s available by now?
        Would appreciate your response.
        Thank you.

  12. Hello.

    How can I check the status of my MP2 account?
    Paano ko malalaman kung how much na yung nailagay ko?

  13. Hi Katie,Thank you for your reply to me on a different article you wrote and the link to this article. All the confusion is now cleared up. My original plan, upon learning of the Pag Ibig MP2 fund was to construct something similar to what you have written about “the ladder” Because or the funds relative safety, I consider it equal to (perhaps even superior to) a bond ladder. We will be opening five accounts, one each year. I plan to do this so the account will mature at around tuition time each year. My instructions to my beautiful bride are, “cash out and use it if you are short, If there is no need for the money, roll it over interest and all for another five year term.” This will fill out the medium term part of her financial plan. We have a four point plan for each of our troopers and since only my wife can be a Pag Ibig member she will have this fifth part added to her personal plan. All the young family members will soon have junior savings accounts, a brokerage account with a parent as guardian and as I have recently learned Kids can also open PERA accounts with a guardian so we plan to do so. The final and forth part for the children is, I am gifting all the mini-people money to invest into my wife’s business.

  14. Hello~ I opened an Mp2 account before but I forgot my mp2 number. How can I retrieve my number so I can make new deposits? Thank you!

  15. Hi Katie. Opened my MP2 account online but I still need to visit the branch. Do you think is it OK if I will use my wife’s bank account instead?

    Continue what you’re doing!

  16. Hi,

    With the recent covid pandemic, when can we possibly say that our investment in MP2 cannot be backed by the government? Is there a possibility that the govt cannot pay the 100% of the capital back? If so, when can we say it may be time for us to withdraw so we may have cash ahead?

    Thanks, all the best 🙂

  17. Hi Ms. Katie,

    Is ok to invest one time large amount, then on top of that you still placing monthly investment?

    1. Ej,

      For hack #2 – dividend harvesting, it will only work if you invest a large investment upfront instead of placing smaller monthly investments. So to answer your question, yes, it is good to invest a large amount 1 time then adding smaller monthly placements.

  18. Hi, Katie. Do you think it’s good to invest in times like these (Covid)? Hope for your opinion. Thank you

    1. Like investing at any other time, you have to be clear about your purpose, risk appetite, and time horizon. For example, if you’re looking at investing and at the same time need access to the funds in the next 5 years, I don’t think that’ll be a good idea at this time. The world situation is so uncertain especially if your only source of income is from the Philippines. But if you’re planning on investing for the long-term for at least 10 years, absolutely.

  19. Hi,

    May I ask if I can make different monthly payment, for example. January – 1000, feb 1200 march 1500, like that?

    I’m just thinking that I can make payments more but not fixed than the required monthly payment.

    Thank you very much

  20. Hi. There’s terms and conditions that says no refund if you paid more than the agreed monthly contribution..it will be credited for the next months. Is it possible to deposit different amounts every month? Like 1000, 25k, 10k, 5k, 25k every month. Basically depends on the extra money I have left that month. TIA

    1. Plain Ryce,

      Yes, you can put in different amounts every month as long as it’s at least 500 pesos. there’s no need to specify at the beginning how much you will deposit each month.

  21. Hi Ms. Katie, your vlog really helps me a lot!
    While reading it some of my questions are answer quietly, and learned something new.
    I still have some questions and hoping you can help me with this.

    1. I am a former member of Pagibig I, my contribution is not updated since 2015 since I am an OFW. Is it possible for me to invets in mp2 Fund?
    2. If I’ll register in mp2 fund and I will not pay for my contribution is it possible?
    3. Since I am getting confuse if pag ibig I and savings for mp2 fund will be same?

    1. Hi Je Lai,

      1. I am a former member of Pagibig I, my contribution is not updated since 2015 since I am an OFW. Is it possible for me to invets in mp2 Fund? – Your account has to be active unless you’re a pensioner.
      2. If I’ll register in mp2 fund and I will not pay for my contribution is it possible? – It’s not possible. You have to be an active member, which means that you have to make monthly payments to Pag-ibig 1.
      3. Since I am getting confuse if pag ibig I and savings for mp2 fund will be same? – They are different programs.

      Thank you.

    1. When I receive questions like these, I need to ask what you mean by “better”? Because your definition of better might be different from mine. Remember that in investing, we have to define our goals (manage volatility, inflation, maximize returns, etc.).

  22. I am a member of PAGIBIG since 2018 but I dont have a stable work so my contribution is not that quite good huge gap over the years. Does it mean I am not allowed to join this program? I already open MP2 account. Wanna know some answers just to make sure I will not face future problems on this. Thanks!

  23. Hi Katie,is it right if i invest the same amount(say 10k each per month) in Pagibig Regular Savings and MP2?

  24. May I ask for more details on how hack #3 works? Kindly elaborate. If possible, can you pls show tabulated calculations per year as concrete example. A bunch of thanks.🙂 Btw, your blog is such an eye-opener. Thank you.

  25. Hi Katie, Just to verify only. What will be the proof that you have invested money in MP2? Will Pag ibig issue a certificate here just like the bank ? Kindly respond to this as I am carefully reviewing if I should invest on it.

  26. Hi Katie,

    Nice vlog. I was planning on using Pagibig MP2 for retirement purposes using your #1 hack- MP2 Rollover. I would just like to ask if you can invest in Pagibig MP2 with non-uniform contribution annually and lock it for 5 years? The money will come from mid-year and year-end incentives/bonus hence the non-uniformity of contributions since it is based from the performance for that year.

    Thanks! 🙂

Leave a Reply

Your email address will not be published. Required fields are marked *

Stay in Touch :)

Copyright 2024 © All rights Reserved. Design by Elementor