Pag-IBIG Fund sets 6.62% P1, 7.12% MP2 dividends for 2025

MANILA, Philippines — The Home Development Mutual Fund (Pag-IBIG Fund) has approved higher dividend rates for members’ 2025 savings, setting returns at 6.62% for Regular Savings (P1) and 7.12% for the voluntary Modified Pag-IBIG 2 (MP2) Savings program. The rates were announced on February 27 during the agency’s Chairman’s Report 2025 held at the Philippine International Convention Center in Pasay City.

The new rates represent slight increases from the previous year’s 6.60% for Regular Savings and 7.10% for MP2. Pag-IBIG said the dividend declaration applies to savings accumulated in 2025 and will be credited to members’ accounts in 2026 following standard processing timelines.

Board approval and payout details

According to Pag-IBIG Fund, the dividend rates were approved by its Board of Trustees based on the agency’s audited financial performance for the 2025 fiscal year. The fund also declared a total dividend payout of ₱64.34 billion, which officials described as the highest in the agency’s history.

Pag-IBIG said the payout complies with the statutory requirement to distribute at least 70% of annual net income to members. The agency reported that its payout ratio exceeded the minimum threshold set under its charter.

Understanding the dividend year

Although the announcement was made in February 2026, the declared rates correspond to financial performance in 2025. Pag-IBIG traditionally finalizes and announces dividend rates in the first quarter of the following year after completing its financial reporting and board review process.

Members’ 2025 savings balances will earn the declared dividend rates, with credits reflected once posting is completed through the agency’s system.

Regular Savings vs. MP2

Regular Savings (P1) consists of mandatory monthly contributions from employees and employers. These contributions accumulate over time and earn annual dividends declared by the fund. Regular Savings also serve as part of the eligibility requirements for housing and short-term loans.

MP2 Savings is a voluntary savings facility available to active Pag-IBIG members. It typically offers higher dividend rates than Regular Savings and carries a five-year maturity period. Contributions are flexible, and dividends under both programs are tax-free under current regulations.

Financial performance context

Pag-IBIG Fund operates as a government-owned and controlled corporation under the Department of Human Settlements and Urban Development. Its mandate includes mobilizing savings from Filipino workers and providing affordable housing financing nationwide.

Officials said sustained growth in membership savings collections, strong housing loan releases, and improved investment earnings contributed to the fund’s income performance for 2025. Dividend declarations are based on audited net income and subject to board approval each year.

The MP2 program has gained traction in recent years among members seeking alternatives to traditional bank savings products, which generally offer lower deposit rates. Even incremental increases in dividend rates can materially affect long-term savings balances, particularly for members with larger voluntary contributions.

Why it matters

Dividend announcements are closely monitored by Pag-IBIG’s millions of members nationwide, as they directly influence the growth of accumulated savings. Higher declared rates signal institutional financial strength and affect retirement and long-term housing-related savings planning for Filipino workers.

Pag-IBIG said members may verify updated dividend postings through its official service channels, including the Virtual Pag-IBIG portal, once crediting is completed.

The fund reiterated its commitment to maintaining financial sustainability while continuing to provide competitive returns and accessible housing finance services to members nationwide.