Pag-IBIG MP2 vs. SSS PESO Fund: Which is the Better Savings Program for You?

Published: October 25, 2019 | Updated: February 10, 2021 | Posted by: Venus Zoleta | Government Services

Pag-IBIG MP2 vs. SSS PESO Fund | Moneymax

Choosing between the Pag-IBIG MP2 and SSS PESO Fund to start saving money? Learn about their similarities and differences to come up with a wise decision.

To encourage their members to save and earn additional income, the Pag-IBIG Fund and SSS offer their respective voluntary savings schemes, the Modified Pag-IBIG II (MP2) Program and the Personal Equity and Savings Option (PESO) Fund. Both government savings programs are attractive options for Filipinos who don’t have much to save and don’t want to invest in riskier instruments such as stocks and mutual funds.

Common Features of Pag-IBIG MP2 Program and SSS PESO Fund Program 

Pag-IBIG MP2 vs. SSS PESO Fund - Common Features

Before we flesh out the differences between the two government savings schemes, let’s take a look at the features that are common to both:

  • Optional savings programs
  • Tax-free
  • Guaranteed by the Philippine government (meaning you won’t lose your savings)
  • Open to all regular Pag-IBIG and SSS members, whether OFWs or local workers
  • Higher interest rates than bank rates (savings accounts and time deposits)
  • Monthly payments not required; no penalty for missed monthly payments

Pag-IBIG MP2 vs. SSS PESO Fund Minimum and Maximum Investments

Pag-IBIG MP2 vs. SSS PESO Fund - Minimum and Maximum Investments

The Pag-IBIG MP2 and SSS PESO Fund are among the most affordable savings options in the Philippines. This makes the two savings programs ideal for millennials, non-working spouses, kasambahays, and other Filipinos who don’t have much money for saving and investing.

For as low as PHP 500 monthly, you can start saving under the MP2.

The minimum monthly investment for the PESO Fund is higher yet still affordable at PHP 1,000. The savings and earnings of SSS members go to three accounts: retirement/total disability (65%), medical (25%), and general purpose (10%). The general purpose account is allocated for education, housing, and livelihood needs.

With the MP2, you can save as much as you can, as it has no maximum savings amount. SSS, however, allows members to save PHP 100,000 at most per year with the PESO Fund.

Pag-IBIG MP2 vs. SSS PESO Fund Interest Rates

Pag-IBIG MP2 vs. SSS PESO Fund - Interest Rates

Investments tend to grow faster with the Pag-IBIG MP2 than the SSS PESO Fund.

From 2010 to 2018, the yearly dividend rate of the MP2 has ranged from 4.58% to 8.11% and followed an upward trend. Its annual dividend rate averages at 7.65%, which is way higher than the average time deposit rate of 2% in the Philippines.

Meanwhile, earnings with the PESO Fund grow by 1.85% to 3.75% per year based on Treasury Bond and T-Bill rates.

The SSS voluntary savings program may have lower interest rates than those of the Pag-IBIG Fund, but they’re still higher than time deposit rates of 1.13% to 3.20%. This means you can earn faster if you put your money in these government savings programs rather than in bank accounts.

Read More: 4 Useful SSS Benefits Filipinos Might Not Know

Pag-IBIG MP2 vs. SSS PESO Fund Maturity Period

Pag-IBIG MP2 Withdrawal

The MP2 savings and dividends can be claimed after five years. However, the Pag-IBIG Fund allows early withdrawal for cases of total disability, insanity, or unemployment due to health reasons. When a member dies before the five-year maturity period, his or her beneficiaries can claim the savings.

After claiming your funds, you can opt to register for a new MP2 account, reinvest the amount fully or partially as a lump-sum payment, and keep on saving for another five-year term.

Read more: Pag-IBIG MP2 Guide: How to Enroll and Invest in MP2 Savings Program

SSS PESO Fund Withdrawal

After five years of saving under the PESO Fund, you can claim only up to 35% of your savings from the medical and general-purpose accounts. The rest of the fund (65%) can be withdrawn only when you reach the age of 60 or when you file for retirement or total disability with the SSS.

If you withdraw before the five-year retention period, SSS will charge penalty and service fees.

Pag-IBIG MP2 vs SSS PESO Fund Enrollment

The biggest difference between the Pag-IBIG MP2 and SSS PESO Fund is their requirement for eligibility.

Pag-IBIG MP2 Requirements for Enrollment

All Pag-IBIG members, including OFWs, can enroll under the enhanced MP2 program regardless of age and monthly income. The improved savings scheme even extends to retirees or pensioners, as long as they are former Pag-IBIG members with at least 24 monthly Pag-IBIG contributions before their retirement.

The Pag-IBIG Fund released the new guidelines for MP2 eligibility requirements in July 2018. Previously, only members with PHP 5,000 monthly income or higher could qualify for the MP2 program. Starting in 2018, this income requirement is waived.

SSS PESO Fund Requirements for Enrollment

Pag-IBIG MP2 vs. SSS PESO Fund - SSS PESO Fund Requirements for Enrollment

The SSS has more requirements for members who wish to enroll in the PESO Fund. Any SSS member (including employees, self-employed professionals, voluntary members, and OFWs) who meets these conditions can open an account:

  • 55 years old and below
  • Paid at least six consecutive monthly SSS contributions (under the regular SSS program) within the last 12 months prior to enrollment
  • For self-employed, voluntary, and OFW members: payment of maximum contributions under the regular SSS program
  • No final claim filed under the regular SSS program (retirement, total disability, or death benefits)

Pag-IBIG MP2 Enrollment Procedures

The traditional way to open an MP2 account is by transacting at any Pag-IBIG branch nationwide. Members are required to fill out the Modified Pag-IBIG MP2 Enrollment Form and submit the completed form to the officer, who will process the application and provide an MP2 account number. The applicant may opt to pay his/her first Pag-IBIG MP2 savings right after account opening at the Pag-IBIG office.

Pag-IBIG MP2 Online Registration

Pag-IBIG MP2 vs. SSS PESO Fund - Pag-IBIG MP2 Online Registration

The Pag-IBIG Fund also accepts online applications for its voluntary savings program through the MP2 Enrollment System (1).

Using the Pag-IBIG online registration facility, enter the required details for the application form, including Pag-IBIG number, name, birthdate, desired monthly contribution, preferred dividend payout (annually or at the end of the five-year maturity period), and mode of payment.

After submitting the online form, the completed Pag-IBIG MP2 enrollment form will appear, which indicates the member’s MP2 account number.

However, you’ll still have to go to a Pag-IBIG office to present the printed and signed copy of your MP2 enrollment form. You can proceed to pay your first monthly savings under MP2. If you chose to pay via salary deduction, you’ll have to submit a copy of your MP2 enrollment form to your employer.

SSS PESO Fund Enrollment Procedures

SSS members can enroll in the PESO Fund at any SSS branch in the Philippines. Simply complete the SSS PESO Fund Enrollment Form (2) and submit it at the nearest SSS office.

SSS PESO Fund Online Registration

Pag-IBIG MP2 vs. SSS PESO Fund - SSS PESO Fund Online Registration

If you want to avoid the long lines at an SSS branch, you can apply online via the My.SSS portal. To start your SSS PESO Fund online registration, you need to create a My.SSS account first. Check this guide for instructions on how to register for an SSS online account.

Once you’ve set up your My.SSS account, log in with your user ID and password. On the homepage, hover your mouse over the e-Services tab and then click “PESO Fund.” After successful enrollment, you’ll receive an email confirmation. You can begin paying your contribution to SSS PESO Fund.

However, SSS requires members who enrolled in the PESO Fund to personally appear at any SSS branch and confirm their enrollment. If you fail to do so, you won’t be allowed to withdraw your savings or apply for any SSS benefit.

Pag-IBIG MP2 vs SSS PESO Fund Payment Modes

Pag-IBIG MP2 Mode of Payment

Members who enroll in the MP2 program have three options for remitting their savings: salary deduction, over-the-counter payment at a Pag-IBIG branch, and payment at any accredited Pag-IBIG collecting partner.

The best Pag-IBIG MP2 mode of payment for employees is through salary deduction. If you choose this payment mode, your monthly MP2 contribution automatically gets deducted from your payroll and remitted by your employer to the Pag-IBIG Fund. No need to worry about skipping any monthly payment.

For self-employed and OFW members, transacting with accredited collection partners is the most convenient Pag-IBIG MP2 mode of payment.

Payment Channels for MP2 Contributions

Here are the different ways to pay for MP2 savings:

  • Credit card payment via the Pag-IBIG Online Payment Facility (3)
  • Bills payment centers: Bayad Center, SM Business Centers, SM Hypermarket, Savemore, M Lhuillier, and ECPay outlets (including 7-Eleven stores)
  • Mobile wallets: GCash app, PayMaya, and app
  • Moneygment mobile app
  • Overseas remittance partners: PNB, AUB, CashPinas, iRemit, and Ventaja

SSS PESO Fund Mode of Payment

SSS members enrolled in the PESO Fund program may remit their savings through any SSS tellering branch nationwide. Aside from the cash or check payment, a completed SSS PESO Fund Payment Form must be submitted to the teller.

Those who prefer to remit somewhere else can do so at any of the following channels that accept SSS PESO Fund payments:

  • GCash
  • Bills payment centers: Bayad Center, SM Business Centers, SM Hypermarket, Savemore, and ECPay outlets
  • Partner banks: AUB, Bank of Commerce, PNB Savings Bank, Rural Bank of Lanuza, UnionBank, and Wealth Bank

Which is Better: Pag-IBIG MP2 or SSS PESO Fund?

So, which of the two government savings programs suits you better? Here’s a table to help you easily visualize the differences between the Pag-IBIG MP2 and SSS PESO Fund.




Age limitNone55 years old
Other eligibility requirementsFor retirees: At least 24 monthly contributions before retirement
  • At least six consecutive monthly SSS contribution payments within the last 12 months before enrollment
  • For self-employed, voluntary, and OFW members: payment of maximum contributions under the regular SSS program
  • No final claim filed
Minimum investmentPHP 500PHP 1,000
Maximum investmentNo limitPHP 100,000 per year
Interest rate4.58% to 8.11% per year (average of 7.65%)1.85% to 3.75% per year
Number of accounts for enrollmentNo limitOne account only
Maturity periodFive years
  • Withdrawal after five years: 35% of savings
  • Withdrawal at age 60 or upon retirement/total disability: 65% of savings
Enrollment procedureBoth in-branch and online (but the online application requires the member’s personal appearance at the branch)Both in-branch and online (but the online application requires the member’s personal appearance at the branch)
Payment modes  Salary deduction/over-the-counter transaction in-branch/accredited collecting partnersOver-the-counter transaction in-branch and accredited collecting partners


As you can see, the MP2 savings program is more affordable and flexible than that of the SSS. With Pag-IBIG MP2, you can grow money as much as you want to. It’s also easier to start saving with the MP2 because it doesn’t have a lot of conditions for enrollment. It comes as no surprise that savings from Pag-IBIG members keep on increasing (4) every year.

Pag-IBIG MP2 offers more flexibility in terms of payment channels. Members enrolled in the MP2 program can choose from a wide variety of payment facilities, including convenient ones like credit cards and mobile wallets.

The SSS PESO has its own merits, though. It’s an ideal way to increase your retirement fund, as you can access your funds only when you retire. The PESO Fund is also better as a long-term investment, while the MP2 is designed for short-term and medium-term investing.

Both government savings schemes allow their respective members to easily start saving for retirement or any financial goal through online registration. However, enrolled members still have to visit a Pag-IBIG or SSS branch to personally confirm their enrollment.

Read more: SSS Salary Loan vs. Pag-IBIG Multi-Purpose Loan: Understanding the Differences

Final Thoughts

Considering all their pros and cons, the MP2 and PESO Fund suit different needs.

The MP2 is the better savings option for self-employed and voluntary members, as well as low-income earners with a limited budget, who can’t afford to pay the full maximum monthly SSS contributions. It’s a great way to save up for a big purchase or anything you need in five years, like funding your travel.

On the other hand, the SSS PESO Fund is more suitable for employees, as their employers shoulder a bigger portion of their monthly SSS contributions. If you’re earning a higher income, it can also help you save for retirement.

Whichever savings program you choose, you’re on the right track with your journey to financial freedom.

What do you think? Which of these two government savings schemes will you choose?  If you’re already saving with one, has it worked for you?

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