Wondering how the MP2 Dividend is calculated? Here is a guide to help you on your journey to save and earn money if you invest in Pag-IBIG MP2 Savings. And for those have an existing MP2 Savings account, see how the dividend is computed.
During the enrollment of your MP2, there are two option you can select for dividend payout:
- Annually. If the annual dividend payout was selected, you can withdraw the annual dividend you receive each year. And that amount will not be added for the succeeding year’s calculation.
- Five-year (end-term). You can only withdraw the total dividend along with the accumulated savings, after the 5-years maturity. It means that the annual dividend will be carried forward to each subsequent year and will also have a dividend.
In this guide, it will discuss how will be the computation for MP2 Savings Schemes: monthly savings option or one-time payment as well as annual dividend or end-term dividend payout. Then, at the end, will show the difference between each schemes.
- Sample Computation 1: MP2 Savings (Same amount monthly savings, End-Term dividend payout)
- Sample Computation 2: MP2 Savings (Same amount monthly savings, Annual dividend payout
- Sample Computation 3: MP2 Savings (One-time payment savings, End-Term dividend payout)
- Sample Computation 4: MP2 Savings (One-time payment savings, Annual dividend payout)
- Comparison – Pag-IBIG MP2 Savings Schemes
Apart from the sample savings above, an actual MP2 Savings will be shared at the end and show how the dividend was computed.
How are MP2 Dividends computed?
To help you understand how the yearly dividend is computed, you can compare the below samples used to the sample data provided by Pag-IBIG in their website.
Sample Computation 1:
MP2 Savings (P500 per month, End-Term Dividend Payout)
So, based on the sample data in the above table, here are the conditions:
- Savings of P500 per month
- Dividend payout selected is Five-Year (End Term)
- Savings per year is P6,000 and a total of P30,000 after 5 years
- Dividend rate of computation is 7.5% (in actual, the dividend rate may varies, see the actual dividend rate here for the past years)
- Total dividend amount earned after 5-years maturity is P6,266.14
- Total accumulated value is P36,266.14, this is the amount that you can withdraw after 5-years maturity
So, now, you might think on how is this computed. Let’s discuss how the dividend amount is computed as well as the total accumulated value.
Year 1 Table and Computation:
For Year 1, you have a 500 monthly savings and a total of 6,000 a year. To compute for the dividend, we need to get the average accumulated amount per month. You can see on the table above on how you can compute the accumulated amount per month which is the sum of present plus the accumulated amount from previous amount. Take note that this accumulated amount will be used only to compute for the monthly average and it is NOT the actual amount.
To know the average accumulated amount, divide the total accumulated amount to 12 months:
Average accumulated Amount=39,000/12 = 3250
And to get the dividend earned for Year 1, multiply the Average Accumulated Amount (3250), the dividend rate (7.5%) and the number of years (1 year, for this case) which equals to 243.75.
Dividend Earned (Year 1)= 3250*7.5%*1= PhP 243.75
And since, you have selected the Five-Year Dividend payout, so for the first year, your accumulated value is P6,243.75, that is accumulated savings (P6,000) plus the dividend earned for year 1 (P243.75).
Year 2 Table and Computation:
For Year 2 computation, first, let’s compute the dividend earned for Year 2 alone. Since you still savings P500 a month for 12 months, the dividend will be P243.75 for Year 2 alone. And from Year 1, the accumulated savings of 6243.75 will also earn a dividend, 6243.75*7.5%*1 year = 468.28.
So the total dividend earned at the end of year 2 is:
Total Dividend Earned (Year 2)243.75+468.28= PhP 712.03
With that, the accumulated value at the end of year 2 is now:
Accumulated Value (End of Year 2)=12243.75+712.03= PhP 12,955.78
Year 3 Table and Computation:
Same for Year 2, Year 3 alone will earn a dividend of 243.75. And the total accumulated value at the end of year 2 will earn a dividend of 971.68. With a total dividend of PhP 1,215.43. And at the end of Year 3, the accumulated value will now be PhP 20, 171.21.
Year 4 Table and Computation:
Same computation. The dividend for Year 4 alone will be 243.75 plus the dividend of accumulated value from year 3, 1512.84.
Total dividend for year 4= 243.75 + 1,512.84 = PhP 1,756.59
With total accumulated value of 27,927.81 at the end of year 4.
Total Accumulated Value (End of Year 4) = 26,171.21 + 1,756.69 = PhP 27,927.81
Year 5 Table and Computation:
For the 5th and last year, your savings of 500 per month will earn a 243.75 dividend after 12 months. Then, add the dividend for accumulated value from previous year, 2094.59. With a total of 2338.34.
Total Dividend for Year 4 = 243.75 + 2,094.59 = PhP 2,338,34
And the total accumulated value after 5 years – end of term will be:
Total Accumulated Value (Year 5 – End Term) = 2,338.34 + 33,92714 = PhP 36,266.14
And after 5 years of savings in MP2, your total savings of P30,000 will earn a total dividend of P6,266.14. It means, upon withdrawal, you can withdraw a total of P36,266.14, tax-free.
Sample Computation 2:
MP2 Savings (P500 per month, Annual Dividend Payout)
So, based on the sample data in the above table, here are the conditions:
- Savings of P500 per month
- Dividend payout selected is Annually
- Savings per year is P6,000 and total of P30,000 after five-years
- Dividend rate of computation is 7.5% (in actual, the dividend rate may varies, see the actual dividend rate here for the past years)
- Total dividend amount to receive will be P5,718.75
Let’s see now how the dividend is computed and how it is different from End-Term Dividend Payout.
Year 1 Table and Computation:
For Year 1, you have a 500 monthly savings and a total of 6,000 a year. To compute for the dividend, we need to get the average accumulated amount per month. You can see on the table above on how you can compute the accumulated amount per month which is the sum of present plus the accumulated amount from previous amount. Take note that this accumulated amount will be used only to compute for the monthly average and it is NOT the actual amount.
To know the average accumulated amount, divided the total accumulated amount to 12 months:
Average accumulated Amount=39,000/12 = 3250
And to get the dividend earned for Year 1, multiply the Average Accumulated Amount (3250), the dividend rate (7.5%) and the number of years (1 year, for this case) which equals to 243.75.
Dividend Earned (Year 1)= 3250*7.5%*1= PhP 243.75
And since, you have selected the Annual Dividend payout, you can now withdraw the dividend amount of P243.75 at the end of Year 1. And this amount will not be added to next year computation. It means, the total accumulated value for Year 1 is equal to the total accumulated savings, which is P6,000.
Year 2 Table and Computation:
For Year 2 computation, first, let’s compute the dividend earned for Year 2 alone, the dividend will be P243.75. And from Year 1, the accumulated savings of P6000 will also earn a dividend, 6000*7.5%*1 year =450.00.
So the total dividend earned at the end of year 2 is:
Total Dividend Earned (Year 2)= 243.75+450.00= PhP 693.75
So, this amount (P693.75) is the total dividend earned at the end of year 2 and can be withdrawn any time. And the total value that will be added to next year computation is P12,000. Since each year, the total savings is P6000, so for 2 years, it will become P12,000 (=6000*2).
Year 3 Table and Computation:
Same for Year 2, Year 3 alone will earn a dividend of 243.75. And the total accumulated value at the end of year 2 will earn a dividend of 900.00. With a total dividend of PhP 1,143.75 and this amount can be withdrawn anytime and will not be added for next year computation. And at the end of Year 3, the accumulated value will now be PhP 18,000.
Year 4 Table and Computation:
Same computation. The dividend for Year 4 alone will be 243.75 plus the dividend of accumulate value from year 3, 1350.
Total dividend for year 4= 243.75 + 1,350 = PhP 1,593.75
With total accumulated value of P24,000 at the end of year 4.
Year 5 Table and Computation:
For the 5th and last year, your savings of 500 per month will earn a 243.75 dividend after 12 months. Then, add the dividend for accumulated value from previous year, 1,800.
Total Dividend for Year 4 = 243.75 +1800 = PhP 2,043.75
And the total accumulated value after 5 years – end of term will be:
Total Accumulated Value (Year 5 – End Term) = PhP 30,000
And after 5 years of savings in MP2, your total savings of P30,000 will earn a total dividend of P5,718.75. And the total accumulated value of your MP2 Savings after 5 years maturity will be P35,718.75.
No MP2 Account yet?
If you do not have an account yet, you can enroll an MP2 account via the Virtual Pag-IBIG Website or here is a guide you can follow for the enrollment.
To open an account, you must have a Pag-IBIG Regular Savings account, that is the regular contributions you pay or by your employer. The 12-digit Pag-IBIG MID number is the number for your Regular Savings account.
Sample Computation 3:
MP2 Savings (P30,000 One-Time Payment, End-Term Dividend Payout)
So, based on the sample data in the above table, here are the conditions:
- A one-time payment of P30,000 at the beginning of Year 1
- Dividend payout selected is Five-Year (End-Term)
- Total Savings is P30,000
- Dividend rate of computation is 7.5% (in actual, the dividend rate may varies, see the actual dividend rate here for the past years)
- Total dividend amount to receive will be P13,068.88
- Total accumulated value after 5 years will be P43,068.88
And to know the calculation of dividend, let’s check each year:
Let’s start in Year 1 Computation:
Since, the one-time payment was paid at the beginning of the year, the dividend amount for year 1 based on 7.5% rate will be:
Dividend (Year 1) = 30,000*7.5%*1 = PhP 2,250.00
Then, the accumulated value at the end of Year 1 is the sum of cumulative savings and the dividend amount:
Accumulated Value (Year 1) = 30,000 + 2,250 = PhP 32,250.00
Year 2 Computation:
The accumulated value from Year 1 will be carried forward to Year 2 and will earn a dividend, so for Year 2, the dividend amount will be:
Dividend (Year 2) = 32,250*7.5%*1 = PhP 2,418.75
Then, the accumulated value at the end of Year 2 is the sum of cumulative savings and the dividend amount:
Accumulated Value (Year 2) = 32,250 + 2,418.75 = PhP 34,668.75
Year 3 Computation:
Same from previous year, the accumulated value from Year 2 will be carried forward to Year 3 and will earn a dividend, so for Year 3, the dividend amount will be:
Dividend (Year 3) = 34,668.75*7.5%*1 = PhP 2,600.16
Then, the accumulated value at the end of Year 3 will be:
Accumulated Value (Year 3) = 34,668.75 + 2,600.16 = PhP 37,268.91
Year 4 Computation:
Same from previous years, the accumulated value from Year 3 will be carried forward to Year 4 and will earn a dividend, so for Year 4, the dividend amount will be:
Dividend (Year 4) = 37,268.91*7.5%*1 = PhP 2,795.17
Then, the accumulated value at the end of Year 4 is:
Accumulated Value (Year 4) = 37,268.91 + 2,795.17 = PhP 40,064.07
Year 5 Computation:
For the 5th and last year, the accumulated value from Year 4 will be carried forward to Year 5 and will earn a dividend, so for Year 5, the dividend amount will be:
Dividend (Year 4) = 40,067.07*7.5%*1 = PhP 3,004.81
Then, the accumulated value at the end of Year 5 (end-term) is the sum of cumulative savings and the dividend amount:
Accumulated Value (Year 5) = 40,067.07 + 3,004.81 = PhP 43,068.88
And after 5 years of savings in MP2, your total savings of P30,000 will earn a total dividend of P 13,068.88. And the total accumulated value of your MP2 Savings after 5 years maturity will be P 43,068.88.
Sample Computation:
MP2 Savings (P30,000 One-Time Payment, Annual Dividend Payout)
So, based on the sample data in the above table, here are the conditions:
- A one-time payment of P30,000 at the beginning of Year 1
- Dividend payout selected is Annually
- Total Savings is P30,000
- Dividend rate of computation is 7.5% (in actual, the dividend rate may varies, see the actual dividend rate here for the past years)
- Total dividend amount to receive will be P11,250.00
- Total accumulated value after 5 years will be P41,250.00
And to know the dividend is calculated, let’s see the computation as follows:
Let’s start in Year 1 Computation:
Since, the one-time payment was paid at the beginning of the year, the dividend amount for year 1 based on 7.5% rate will be:
Dividend (Year 1) = 30,000*7.5%*1 = PhP 2,250.00
For this example, the dividend payout chosen was annual, this dividend amount of P2,250 can be withdrawn after Year 1. And the amount that will not be added in subsequent years and only the cumulative savings of P30,000 will be carried forward.
So for Year 2 up to Year 5, with that same amount of P30,000, the dividend amount for each year will be same:
Dividend (Each Year) = 30,000*7.5%*1 = PhP 2,250.00
So after 5 years, the total dividend amount will P11, 250 (2,250*5), this is the total earning of your P30,000 one-time payment savings.
And the total accumulated value will be PhP 41,250.00.
Comparison: Pag-IBIG MP2 Savings Schemes
In the above table, you can see the comparison of four (4) different options made for the sample MP2 Savings as explained above. For a total savings of P30,000 either saving P500 per month or one-time payment, you will notice that dividend amount are not the same. It can be observed that if you save a one-time payment, it earns more compared to the monthly savings of P500 per month but same total amount after 5 years.
Another comparison is the dividend payout option; it is a better option to choose the end-term payout. With this, the dividend each year will also earn a dividend for the succeeding years until maturity. Unlike the annual payout, the dividend earned each year will not be carried forward to subsequent years. But, annually, you can withdraw the dividend amount earned each year.
Actual MP2 Savings Dividend Rates (2011-2021)
MP2 Savings have higher dividends compared to P1 or the Regular Savings. The dividends are tax-free and computed annually based on the performance of Pag-IBIG investments. The dividend will be reflected on your account every year and you have an option to withdraw it annually or after the 5-years maturity. Historically, here are the MP2 Savings Dividend Rates from 2011. (Source)
Actual MP2 Savings with Dividend Computation
Here is an actual MP2 Savings account which started on January 2020. The declared dividend for that year is 6.12%. As you can see, savings are made every month and in different amounts for a minimum of P500. And, at the end of the year, a dividend amount of P351.90 has been added to the MP2 Savings account.
To check the computation of the dividend received, see the table below. As declared, the dividend rate for 2020 was 6.12%. As you can notice, the monthly savings range from P500 to P1500 and paid on a monthly basis. And in the third column, it is the accumulated amount each month, which is equal to the current month’s savings plus the accumulated amount from previous months. The purpose of the 3rd column or the accumulated amount is only for computing the average accumulated amount per month.
So for the year 2020 of the above MP2 Savings with a total savings amount of PhP 12,000, the account earned a dividend amount of Php 351.90 for that year.
Dividend Earned (Year 1 – 2020) = 5750*6.12%*1 year = PhP 351.90
This means, it earns PhP 351.90 for the PhP 12,000 total savings. And, since this account chooses an end-term dividend payout, the accumulated total savings at the end of Year 1 is PhP 12,351.90.
Accumulated Value (end of Year 1 – 2020) = 12,000 + 351.90 = PhP 12,351.90
Here is the table for the savings made for 2021 for this MP2 Savings account. The declared dividend for year 2021 is 6.00%. And the account earned a dividend amount of P 1,311.11.
Now, to compute for the earned dividend, see the table below. The savings was not done in monthly basis as some months has no payments.
To compute for the dividend earned for Year 2 alone, you need to get the average accumulated amount then multiply with dividend rate and number of year applicable:
Dividend earned for Year 2021 Alone = 9500*6%*1 = P 570.00
And, we will add the dividend earned from the accumulated value from previous year:
Dividend earned from Year 1 – 2020 = 12351.90*6%*1 = 741.11
Then, the total dividend earned at the end of year 2 will be P1,311.
Total Dividend Earned (Year 2 – 2021) = 570 + 741.11 = PhP 1,311.11
And with the total savings of P15,000 for year 2 plus the cumulative savings from year 1 of P12,351.90, the total cumulative savings at the end of Year 2 is P27,351.90.
So, at the end of year 2, the accumulated value of this MP2 Savings is now P 28,663.01.
Accumulated Value (End of Year 2 – 2021) = 27,351.90+1311.11 = PhP 28,663.01
The dividend rate for 2022 will only be announced around April next year. Let’s wait and see.
As a guide, you can use this actual MP2 Savings shown below. This actual MP2 Savings account was enrolled on January 2020 with P500 as an initial saving.
If you want to check this with Calculator 3, you will come up with the same dividend amount as declared on the account. Just enter the monthly savings with the respective months and use the actual dividend rate for 2020 which is 6.12%.
Want to know how the dividend is calculated? Click here for the detailed computation.
New to Pag-IBIG MP2 Savings?
If you are new with Pag-IBIG MP2 Savings, it is a voluntary program and a special savings facility with a 5-year maturity offered by Pag-IBIG to their members. For as low as P500, you can save and earn higher dividend with MP2 Savings. To learn more about MP2, click here.
Keypoints and Takeaways
- MP2 Savings is a voluntary and special savings program of Pag-IBIG
- MP2 Savings has higher dividend compared to Pag-IBIG Regular Savings (P1)
- MP2 Savings and earned dividend is tax-free and government guaranteed investment
- There are 2 dividend payout options: Annually and Five-Year (End Term) Payout
- You can save a one-time payment or save any amount anytime and not necessarily every month, since MP2 is voluntary savings program
- Start to save early to save and earn more after the 5-year maturity
Happy Savings!
Hello, everyone! I’m Ali Chavez, the admin and creator of the Online Quick Guide blog website. I’ve been an OFW for 15 years now, working in the Middle East. I’m an Electronics Engineer by profession and obtained a Diploma in Computer Science. I created this blog to help everyone, particularly OFWs like me, maximize the use of available online services and applications. These e-services, offered by government agencies, and online banking and mobile apps provide us with easy access and convenience. I hope each tutorial will guide you in using these online services to your advantage.
Hello sir, if I have an MP2 account with a 5-year maturity, when would I expect to see the dividends earned? Is it annually reflected and accumulated or will it only reflect after 5 years?
It will be annually reflected to your MP2 account which is normally announce and credited to your account every March or April each year.
If you started your MP2 last year, the dividend for 2022 will be announced soon. And it will reflect to MP2 account on March or April 2023.
If you selected dividend payout is end-term or after 5 years, the dividend will be added to the principal/total savings and will also earn dividend for next year until maturity. However, if you selected dividend payout is annually, each dividend per year will not earn a dividend, only the total amount you save in MP2.