PAG IBIG offers additional saving programs along with regular savings. PAG-IBIG’s introduced MP2 scheme allows all membership holders to save and earn substantial dividends with regular savings voluntarily. There is no need for your monthly income to become a member of this scheme. Your PAG IBIG membership is the only requirement to qualify for this loan.
PAG-IBIG members have the opportunity to contribute a portion of their wages to the fund. Meanwhile, the employer is also capable of doing it on behalf of the employee. They can earn their selected dividends of their contributions in certain conditions.
CHECK: Pag ibig dividend rate 2024
However, you’re capable of saving four significant options via the MP2 program;
Once you select the end-year dividend contribution, your annual dividend accumulates. It contributes to the next year’s total amount and results in a larger payout. Contrarily, with annual dividend payouts, you’re capable of withdrawing the dividend each year. In this case, its value won’t contribute to the total accumulate value (TAV) for subsequent years.
Contents
- 1 Best PAG IBIG’s Dividend Rates and Financial Milestones
- 2 Since 2011-2022 Dividend Rates of MP2 Savings in PAG IBIG
- 3 Dividend Sample Computations for MP2 Program
- 4 Annual Dividend Payout Sample Computations for MP2 Program
- 5 Annual Dividend and End-Year Dividend Payout of PAG IBIG MP2 Payout Comparison
- 6 FAQs
- 7 Final words
- 8 Author
Best PAG IBIG’s Dividend Rates and Financial Milestones
In 2022, the PAG IBIG agency announced its highest dividend rates since the arrival of the COVID-19 pandemic. So, our agency’s regular savings dividend rates for the year reached 6.53%. Meanwhile, MP2 Savings rose to an impressive 7.03% per annum.
CHECK: PAG-IBIG MP2 Savings
PAG IBIG’s Performance Highlights
Dividend Payout and Board Approval of PAGIBIG
Secretary Jose Rizalino Acuzar, head of the Trustees Board of PAGIBIG, attributed the record dividend rates to the agency’s exceptional net income. He is also head of the Department of Human-Settlements & Urban Developments (DHSUD).
However, his board approved a remarkable 97% dividend payout ratio, which is more than the required 70%. This decision resulted in the highest PAG IBIG historic dividend amount of P42.7 billion.
Compute here: Pag-ibig mp2 calculator
Since 2011-2022 Dividend Rates of MP2 Savings in PAG IBIG
These Dividend Rates are verified by the Fund’s Board of Trustees and are associated with funding performance. They may alter over time, so it’s crucial to verify the current rates before investing.
| Year | Dividend Rates |
| 2022 | 7.03% |
| 2021 | 6.00% |
| 2020 | 6.12% |
| 2019 | 7.23% |
| 2018 | 7.41% |
| 2017 | 8.11% |
| 2016 | 7.43% |
| 2015 | 5.34% |
| 2014 | 4.69% |
| 2013 | 4.58% |
| 2012 | 4.67% |
| 2011 | 4.63% |
Once you’ve overviewed the dividends history of PAG IBIG, it’s vital to know how you can compute these Dividend payouts.
Dividend Sample Computations for MP2 Program
So, for the end-yearly MP2 dividend payout, you can withdraw your savings only after the five-year maturity date. Hence, here your sample calculation is considered the entire dividend rate around 6.0% in 2021.
End-Year Dividend Payout of PAG IBIG MP2
Monthly savings: P500
| Duration | Monthly Savings (MS) | Accumulated MS annually | Entire Cumulative Savings | Dividend Amounts | VAT |
| Year 1st | P500 | P6,000 | P6,000 | P150 | P6,150 |
| Year 2nd | P500 | P6,000 | P12,000 | P519 | P12,669 |
| Year 3rd | P500 | P6,000 | P18,000 | P910.14 | P19,429.14 |
| Year 4th | P500 | P6,000 | P24,000 | P1,315.75 | P26,744.89 |
| Year 5th | P500 | P6,000 | P30,0000 | P1,754.69 | P34,499.58 |
| Total | – | P30,000 | – | P4,499.58 | P34,499.58 |
Year 1
In the first year, your contribution is P500 per month, and it ends at P6,000 annually. You may calculate the dividend by finding the monthly average cumulated amount, which is the sum of the current and previous accumulated amounts. Remember, this accumulated payout is used for computing the per-month average, not the accurate actual amount. Afterwards, let’s divide the entire accumulated amount by 12 months to know your average payment.
Total Accumulate Amount: Per month Payment x 12 months x 5
P6,000 x 12 x 5 = P30,000
Average AA: TA Amount/12
P30,000/12= P2,500
(for 2021) Its Dividend Rate (DR) > 6.0% (6.0/100 = 0.06)
Year 1st Earned Dividend: AAA x DR
P2,500 x 0.06= P150
TAV: Cumulative Savings+ Dividend Earned Annually
P6,000 + P150 = P6,150
Year 2
TAV of Year 1st Dividend = TAV x DR (converted)
P6,150 x 0.06 = P369
Entire Earned Dividends (Year 2nd) = Earned Dividends + 1st year Dividend AV
150 +369 = P519
Year 2nd Cumulative Savings = 1st Yar TAV + Yearly Savings
P6,150 + P6000 = P12,150
Year 2nd TAV = Cumulative Savings + Year 2 Dividend Earned
P12,150 + P519 = P12,669
Year 3
TAV of Year 2 Dividend = TAV x DR (converted)
P12,669 x 0.06 = P760.14
Entire Earned Dividends (Year 3) = Earned Dividends + 2nd year Dividend AV
150 +369 = P910.14
Year 2nd Cumulative Savings = 2 Year TAV + Yearly Savings
P6,12,669 + P6000 = P18,669
Year 2nd TAV = Cumulative Savings + Year 3 Dividend Earned
P18,669+ P910 = P19,429.14
Year 4
TAV of Year 3 Dividend = TAV x DR (converted)
P19,429 x 0.06 = P1,165.75
Entire Earned Dividends (Year 4) = Earned Dividends + 3rd year Dividend AV
150 +1,165.75 = P1,315.75
Year 3 Cumulative Savings = 3 Year TAV + Yearly Savings
P19,429.14 + P6,000 = P25,429.14
Year 4 TAV = Cumulative Savings + Year 4 Dividend Earned
P25,429.14+ P1,315.75 = P26,744.89
Year 5
TAV of Year 4 Dividend = TAV x DR (converted)
P26,744.89 x 0.06 = P1,604.69
Entire Earned Dividends (Year 5) = Earned Dividends + 4 year Dividend AV
150 +1,604.69= P1,754.69
Year 4 Cumulative Savings = 4 Year TAV + Yearly Savings
P26,744.89 + P6,000 = P32,744.89
Year 5 TAV = Cumulative Savings + Year 5 Dividend Earned
P32,744.89+ P1,754.69= P34,499.58
End-Year Dividend Payout for One-Time Payment
| Duration | Monthly Savings (MS) | Accumulated MS Yearly | Cumulative Saving | Amount of Dividend | TAV |
| Year 1 | P30,000 | P30,000 | P30,000 | P1,800 | P31,800 |
| Year 2 | – | – | P31,800 | P1,908 | P33,708 |
| Year 3 | – | – | P33,708 | P2,022.48 | P35,730.48 |
| Year 4 | – | – | P35,730.48 | P2,143.83 | P37,874.31 |
| Year 5 | – | – | P37,874.31 | P2,272.46 | P40,146.77 |
| Total | – | P30,000 | – | P10,146.77 | P40,146.77 |
In PAGIBIG MP2, a one-time payment of P30,000 gives a total dividend of P10,146.7 for the end-year payout. After five years at a 6% dividend rate, the TAV of your MP2 Savings is P40,146.77.
Year 1
Year 1 Dividend = P30,000 x 6% = P1,800
ATV Year 1= P30,000+P1,800 = P31,800
Year 2
Year 2 Dividend = P31,800 x 6% = P1,908
ATV Year 2 = P31,800+P1,908 = P33,708
Year 3
Year 3 Dividend = P33,708 x 6% = P2,022.48
AV Year 3 = P33,708+P2,022.48 = P35,730.48
Year 4
Year 4 Dividend = P35,730.48 x 6% = P2,143.83
AV Year 4 = P35,730.48 + P2,143.83 = P37,874.31
Year 5
Year 5 Dividend = P37,874.31 x 6% = P2,272.46
AV Year 5 = P37,874.31 + P2,272.46 = P40,146.77
Annual Dividend Payout Sample Computations for MP2 Program
You can withdraw annually in a yearly dividend payout. Meanwhile, you must note that it may result in a slightly lower TAV. The dividend rate for the sample can be 6.0%, the MP2 Savings rate in 2021.
Annual Dividend Payout with Monthly Contribution
| Duration | MS | Accumulated MS Annually | Cumulative Saving | Dividend Amount | TAV |
| Year #1 | 500 | 6,000 | 6,000 | 150 | 6,000 |
| Year #2 | 500 | 6,000 | 12,000 | 510 | 12,000 |
| Year #3 | 500 | 6,000 | 18,000 | 870 | 18,000 |
| Year #4 | 500 | 6,000 | 24,000 | 1,230 | 24,000 |
| Year #5 | 500 | 6,000 | 30,0000 | 1,590 | 30,0000 |
| Total | – | 30,000 | – | 4,350 | 30,000 |
Monthly Savings > P500
Year 1
TAV: Monthly Payout x 12 months (one year) x 5
P6,000 x 12 x 5 = P30,000
AAA: Total Accumulated Amount/12
P30,000/12 = P2,500
DR: 6.0% (as of 2021) > (6.0/100 = 0.06)
Year 1 > Earned-Dividend: AAA x DR
P2,500 x 0.06 = P150
At the end of year 1, You can withdraw a dividend of P150. Your cumulative savings must be P6,000, and the earned dividend will not contribute to the total accumulated value.
Year 2
For now, in Year 2, you may calculate the Year 2 dividend in the amount of P150. Additionally, the initial cumulative savings of P6,000 from Year 1 will increase a dividend of P360 at a rate of 6%.
Paid Dividends of Year2 = P150 + P360 = P510
At the last of year 2, your total dividend earned will withdrawn at P510. The entire amount added to the computation for the next year is P12,000 and taken as an annual savings of P6,000 (P6,000 x 2 years).
Year 3
Year 2 AV Dividend: P12,000 x 0.06 = 720
Year 3 earned Dividends: Dividend Average + AV of Year 2
P150+P720 = P870
TAV of Year3: P6,000 x 3 years = P18,000
Year 4
Same as in years 2 and 3, your Year 4 comes with a payout of P150, plus the Year 3 dividend P18,000 x 0.06 = P1,080.
Year 4 entire Dividends = 150 + P1,080 = P1,230
Your entire cumulative value at last of Year 4 will be P24,000.
Year 5
Entire Dividends of Year 5= P150 + P1,440 = P1,590
Your whole AV of this period will become P30,000.
Annual Dividend Payout with a One-time Contribution
| Duration | MS | MS Accumulated Yearly | Cumulative Savings | Amount of Dividend | TAV |
| Year #1 | P30,000 | P30,000 | P30,000 | P1,800 | P30,000 |
| Year #2 | – | – | P30,000 | P1,800 | P30,000 |
| Year #3 | – | – | P30,000 | P1,800 | P30,000 |
| Year 4 | – | – | P30,000 | P1,800 | P30,000 |
| Year #5 | – | – | 30,000 | 1,800 | 30,000 |
| Total | P30,000 | – | P9,000 | P30,000 |
The one-time payout sample value is P30,000
Years 1 – 5
Each Year’s Dividends = P30,000 x 6% x 1 = P1,800
In this case, you can withdraw a P1,800 dividend each year with an annual dividend payout. Meanwhile, your P30,000 cumulative savings must be carried forward. This means that your dividend amount will remain consistent for Years 2 to 5 with the same P30,000.
Annual Dividend and End-Year Dividend Payout of PAG IBIG MP2 Payout Comparison
| Savings | Dividend Payout | Whole savings | Whole Dividend | TAV |
| Monthly Payment | End-Year Payout | P30,000 | P4,499.58 | P34,499.58 |
| Monthly Payment | Annual Payout | P30,000 | P4,350 | P34,350 |
| One-Time Payment | End-Year Payout | P30,000 | P10,146.77 | P40,146.77 |
| One-Time Payment | Annual Payout | P30,000 | P9,000 | P39,000 |
You can analyse that a one-time payment gives more savings than saving P500 monthly but ends in a similar amount after five years.
Meanwhile, you may see that an end-term dividend payout is preferable, as the earned dividend each year continues to be earned in the following years until its maturity. In contrast, the annual payout doesn’t carry the earned dividend forward to succeeding years, but it allows withdrawal each year.
FAQs
Can I obtain my PAG IBIG dividends?
Your Regular Savings offers a convenient and safe savings option with the highest annual dividends. You can withdraw your savings upon retirement, after 20 years of membership, or under other qualifying conditions.
What Dividends can I receive from my MP2 savings?
Your whole savings are derived from a minimum of 70% of the PAGIBIG amount’s annual net income. So, your dividend rate in 2022 was 7.03%.
How can I obtain my Dividend savings?
As a savings owner, you’ve two options regarding getting your dividends:
> Compounded dividends at five-year maturity
> Per year, with the help of dividends amount to your account in banks
> Development Bank Philippines (DBP)
> Land Bank Philippines (LBP)
> PAG IBIG funding accredited other banks
Meanwhile, OFWs can achieve their dividends by a payable check to MP2 savers.
Final words
Dividends in PAG IBIG are the greatest saving program that offers guaranteed earnings with a rate higher than standard PAGIBIG deposits. It ensures a competitive and steady return on investment. You can enjoy the extra tax-free amount in your associated banks easily.
However, you need to stay connected with our officially announced dividend rates table for your updated investment ideas. Ultimately, you’ve learned the best computing methods for your appropriate dividends, and then start investing in your dividend-saving program.
Refer: https://www.pagibigfund.gov.ph/2023news.html
