Pag-IBIG MP2 Vs. SSS Peso Fund: Know The Difference

Once you start thinking about savings or making investments that can make your money grow, that is the time you have officially entered adulthood.

Money has never been easy to get. Some people have to go to extreme lengths like work in another country just so they could support themselves or their family. That is why in this article, we will be focusing on the Pag-IBIG MP2 and SSS Fund and how they can help you increase your finances.

Take note that these saving programs are also available for OFWs to use.

Pag-IBIG Fund MP2 Savings Program

The Modified Pag-IBIG II (MP2) savings program is designed specifically for active Pag-IBIG fund members or former Pag-IBIG fund members (with a source of monthly income or pension and with savings equivalent to 24 months) to save money through a flexible dividend rate.

The term is five years and a minimum amount of P500 is required to start your MP2 savings program. There is no limit as to how much you can save! Though if you want to save more than P500,000, you would have to remit the amount through your personal or manager’s check.

The dividends in the MP2 program are tax-free and have a higher rate than the regular Pag-IBIG savings program. The ones that are derived from the Pag-IBIG fund’s annual net income will not go lower than seventy percent. The Pag-IBIG MP2 interest rate on an average of three years is at 6.96% to 8.11%.

That said, you’re probably asking: When can I receive my MP2 dividends? There are two ways:

  1. When it reaches its fifth-year maturity stage, your MP2 dividends will be compounded.
  2. You can receive it annually. Your MP2 dividends will be credited to your savings or checking account through banks that are under Pag-IBIG (ex. Land Bank of the Philippines or Development Bank of the Philippines). But in case you are an OFW and have no bank account in the Philippines, your MP2 dividends will be released through a check payable to the MP2 saver.

(Read: Beyond Pensions And Loans: 3 Government Savings Programs To Check Out)

In case there is an emergency, you may withdraw your Pag-IBIG MP2 Savings as long as they are under these circumstances:

  1. Total disability or insanity
  2. Separation from the service due to health reasons
  3. Death of an immediate family member
  4. Retirement (except if the MP2 Saver is already a retiree)
  5. Migration/permanently leaving the country
  6. Unemployment limited to layoff or closure of the company
  7. Critical illness of the member/immediate family member as long as it is certified by a licensed physician (this is subject to the approval of Pag-IBIG fund)
  8. Repatriation of an Overseas Filipino Worker (OFW) member from the host country

You may re-apply once your MP2 Savings reaches its fifth-year maturity. If the savings were not withdrawn after five years, the dividend rate that will be applied is the same as in the Pag-IBIG I, which is much lower than the dividend rate of the MP2.

Keep in mind that after two years, your savings will also stop earning.

(Read: How To Apply For Pag-IBIG Loyalty Card 2019)

How to enroll in Pag-IBIG Fund MP2 Savings Program

You can enroll by registering online through their MP2 Enrollment System. Here is the link for it:

Step 1: Once you’re on the website, click “E-Services” Step 2: Choose “MP2 Enrollment System” Step 3: it will require you to enter your Pag-IBIG MID number, biodata, and other personal information Step 4: Once you double checked all the info, press “Submit My Application” Step 5: Upon registering, you will be given an MP2 Account Number. Print that along with the registration form when you go to the Pag-IBIG branch near you to start remitting.

You can still register if you’re an OFW. Ask anyone you know in the Philippines to take the registration form for you. Another option is that you can pay through the Overseas Remittance Partners Abroad. Just use the MP2 account number that you have.

These are the Overseas Remittance Partners Abroad:

  • Philippine National Bank (PNB)
  • Asia United Bank (AUB)
  • I-Express Remit Mo Sa Pag-IBIG
  • I-Text Mo Sa Pag-IBIG
  • I-Remit Ventaja (PayPilipinas is included)

Pag-IBIG MP2 Mode of Payment

  1. Over the counter:
    • Bayad Center
    • SM Business Centers (Hyper Market and Savemore are included)
    • M. Lhuillier
    • ECPay
  2. Online:
    • Log in to Pag-IBIG Fund website (
    • Select “E-Services”
    • Click “Online Payment Facility”

What are the benefits of investing in MP2?

  1. Easy entry. Unlike other savings account or investments, MP2 does not need a ton of documents to apply. All you need is your HDMF Transaction Card (your Pag-IBIG ID) or if you still don’t have an ID, give them your complete name and Pag-IBIG MID number.
  2. Annual dividend has a higher interest rate. Unlike time deposit accounts, Pag-IBIG has already declared that the annual dividend interest rate would depend on the fund’s earnings in the previous years.
  3. Tax-free. The Total Accumulated Value (TAV) is not charged with 20% of the withholding tax.
  4. It is a low risk and conservative investment

What are the downsides of investing in MP2?

  1. You cannot withdraw your TAV before its maturity date
  2. The MP2 program is designed only as a saving scheme for Pag-IBIG. You cannot use it to avail loans.


What is the SSS-P.E.S.O fund system? The SSS-P.E.S.O (Personal Equity and Savings Option) Fund is a voluntary provident fund scheme for SSS members in addition to the regular SSS program they offer. If you want to save up your excess earnings and start preparing for your future, this could help you.

SSS-P.E.S.O is divided into three accounts:

  • Retirement (65%)
  • Medical (25%)
  • General (housing, education, unemployment) (10%)

*The allotted funds for medical and general-purpose can only be withdrawn before the member’s date of retirement.

*There are penalties charged for every withdrawal made before the fifth year

Some of the factors that make this a good investment are:

  1. It is tax-free
  2. The contributions are placed in a sovereign guaranteed investment
  3. It is sure to cash come back

Those who are qualified to join our members that are below 55 years old must have:

  • Paid their regular SSS contributions for at least six consecutive months within the 12-month period prior to their application
  • Does not have any filed final claim under SSS’s regular program
  • Self-employed (SE)/ voluntary (VM)/ OFW must be regularly paying the maximum amount of contributions in their regular SSS program

If you are interested in applying, you can do it over the counter by visiting the SSS branch near you.

SSS branches in Metro Manila:

  • Diliman
  • Cubao
  • Pasig-Shaw
  • Taguig
  • Alabang
  • San Franciso Del Monte
  • Pasay-Roxas Boulevard
  • Legarda
  • Mandaluyong
  • Makati-Gil Puyat
  • Pasay-Roxas Boulevard

Or you can enroll online via My.SSS

(Read: SSS PESO Fund: A Better Way To Save For Your Retirement)

When can a member contribute to the SSS-P.E.S.O Fund?

The member can contribute anytime if they have extra funds.

The minimum amount of contribution is P1,000 and the maximum contribution is P100,000 per annum.

When can the member receive the benefits?

You can only receive the benefits under these terms:

  • You have filed for retirement, total disability or death claim under the regular SSS program
  • In the case of retirees or total disability, the benefits will consist of the member’s contributions and earnings from the SSS-P.E.S.O Fund. They can receive it through their monthly pension, lump-sum or a combination of both.
  • The death benefits shall be given in lump-sum to the member’s beneficiaries

Pag-IBIG MP2 vs. SSS-P.E.S.O Fund

So now that you know how they work and their benefits, what makes them different from one another?

The answer to that will always depend on your financial state and goals for the future. But if we were to measure which program has more advantages, it would be the Pag-IBIG MP2 savings plan. They have fewer restrictions and have easier requirements.

However, opening an account would still depend on your situation and what would be easier for you.

(Read: SSS Pension: Computation, Requirements, Loans, And Benefits)

Their similarities are:

  • Both of them are tax-free
  • They are a voluntary savings account
  • The money comeback are both guaranteed by the Philippine government (zero risks of losing your money)
  • OFW’s are allowed to invest in it too
  • Monthly investment is not required
  • They have higher interest rates than regular savings account from the bank

Their differences:

Minimum amount of investment is P500 Minimum amount of investment is P1,000
No maximum savings amount Maximum savings amount every year is P100,000
Has no age limit Must be 55 years of age and below
Anyone is allowed to apply regardless of their monthly income Should have at least 6 monthly contributions within the last 12 months prior to application
Open to members who are retirees and pensioners (as long as they have paid 24 monthly contributions prior to their retirement) Does not offer total disability benefits
Their dividend rate rose from 4.58% last 2010 to 8.11% in 2017 Their dividend rate is 1.85% to 3.75% based on T-bill and Treasury Bond rates
You may claim your dividends after 5 years. You can claim up to 35% of your savings after 5 years. The remaining 65% can only be withdrawn when you retire or reach the age of 60

For more inquiries, here are their contact details

Pag-IBIG Fund

Phone: (+632) 724-4244 Website: Email:


Phone: (+632) 920-6446 to 55 Website: Email: