MP2 Savings Estimator
Project the massive tax-free dividend potential of the government's best-kept investment secret for 2026.
Notice: This dedicated MP2 Calculator web app is currently undergoing algorithm updates to reflect the latest declared 2024-2026 dividend rates securely. In the meantime, please read our comprehensive guide on how the MP2 mathematics work below.
What is the Modified Pag-IBIG II (MP2) Program?
While the standard Pag-IBIG Fund (Pag-IBIG 1) acts as a mandatory savings mechanism deducted directly from your payslip, the MP2 Savings Program is a purely voluntary, supplementary savings facility. Specifically designed for active Pag-IBIG Fund members who wish to save more and earn incredibly high dividend yields.
The beauty of MP2 lies in three core guarantees:
- It is government-guaranteed: Unlike the stock market or volatile crypto assets, your principal deposit is fully backed by the Philippine government. You cannot lose your initial investment.
- The profits are 100% tax-free: Commercial banks subject your tiny interest earnings to a standard 20% withholding tax. MP2 dividends are shielded entirely from the Bureau of Internal Revenue (BIR). You take home every single centavo you earn.
- It compounds aggressively: You can choose an annual payout, but smart investors choose the 5-year compounded option. By letting your dividends earn their own dividends over a locked 5-year maturity period, your money grows exponentially.
Historical MP2 Dividend Rates
The system consistently outperforms almost all low-risk commercial bank time deposits, treasury bonds, and digital bank high-yield accounts. The dividends derive directly from the interest income collected from housing loan borrowers.
| Year | Declared MP2 Dividend Rate |
|---|---|
| 2023 | 7.05% |
| 2022 | 7.03% |
| 2021 | 6.00% |
| 2020 | 6.12% |
| 2019 | 7.23% |
How to Start Investing in MP2
The barrier to entry is phenomenally low carefully built for the working class.
- Minimum Contribution: You only need ₱500 per month. There is technically no maximum limit, although deposits exceeding ₱500,000 via managers check strictly require you to declare your source of funds physically at a branch.
- Enrollment: You simply visit the Virtual Pag-IBIG website natively, fill out the MP2 Enrollment Form, and generate an MP2 Savings Account Number immediately. You can open multiple MP2 accounts concurrently to track different financial goals (e.g., one account for a car fund, another for a child's education).
- Payment Flexibility: You are not punished for missing a month. You can contribute ₱500 this month, skip three months, and suddenly drop a ₱50,000 lump sum next December. You dictate the pace.