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SSS PESO Fund vs. Pag-IBIG MP2: Which savings plan for the Filipinos should you choose?

I suck at savings. I’ve been working for more than ten years now, but I have very little amount of savings. Sad but true. So for 2018, I’m looking for options on how I can save money for immediate and future needs.

Saving is not in the vocabulary of the Filipinos especially those who are trying to make ends meet while living from paycheck to paycheck like me. The thing is the government has specific savings programs that not all Filipinos are aware of. Toinks.

Hence this post.

Pag-IBIG MP2 vs. SSS PESO Fund

In February 2010, Pag-IBIG launched MP2. SSS (Social Security System) followed suit in May 2015 through the PESO Fund program, an offshoot of the Flexi-Fund savings program specifically designed for the OFWs. Which one should you choose—PESO or MP2? Below are some information to guide your decision-making.

MP2 stands for Modified Pag-IBIG II while PESO stands for Personal Equity and Savings Option. These programs are:

  • Available to non-OFWs or local income earners

  • Available to all regular Pag-IBIG and SSS members

  • Voluntary savings scheme

  • Tax-free

  • Philippine government guaranteed

  • Salary deducted and remitted by the employer

Don’t worry because these savings programs offer higher interest rates compared to the current bank rates. Monthly contributions are not required as well. You won’t be penalized if ever you miss a month or months of contribution. When making contributions, though, there are certain things to remember.


To be eligible, you must be a regular Pag-IBIG or SSS member. For Pag-IBIG members, your gross monthly income must be Php5,000 and must have paid at least one monthly savings. For SSS members, on the other hand, you must not have file any final claim yet. SSS members must have paid six consecutive monthly contributions within the last 12 months to be accepted into the program. There is no maximum age limit for Pag-IBIG members while SSS requires that you are 55 years or younger at the time of registration.


Speaking of savings, you must be paying Php100 for employed individuals or Php200 for self-employed, voluntary and overseas Filipino workers (OFWs). For SSS, you must be contributing the regular contribution based on your monthly salary credit (MSC) if you are employed and the maximum amount of Php1,760 for the self-employed, voluntary and overseas Filipino workers (OFWs).

Savings amount

For Pag-IBIG, the minimum monthly savings is Php500 and Php1,000 for SSS members. The maximum savings amount for SSS members is Php100,000 per year. The savings will go directly to your own MP2 account for Pag-IBIG MP2 and your regular SSS account for SSS PESO. You can only have one PESO account. Pag-IBIG allows its members to have more than one MP2 account though.


While both are aimed for savings with yield, the components are very different. Pag-IBIG MP2 is an outright savings program while SSS PESO is divided into three segments namely retirement/total disability (65%), medical (25%) and general purpose (10%). The last one refers to education, housing, livelihood and unemployment.


You may claim your Pag-IBIG MP2 savings after five years, but you can only claim the 35% on your SSS PESO account. The 65% can be claimed when you turn 60 years old or upon filing retirement or total disability.

Premature withdrawal

One may withdraw before the five-year hold period but only under certain conditions. For Pag-IBIG MP2 members, you may withdraw your savings for reasons of total disability or insanity, unemployment due to an illness and member’s death. SSS PESO members can also do so but from the medical and general purpose (35%) accounts only. Corresponding fees and penalties apply.

A member may continue paying for SSS PESO after five years. For Pag-IBIG MP2 members, a renewal is necessary.

I summed it all up in an infographic for all of you.

sss peso vs pagibig mp2 infographic

Which is better—PagIBIG MP2 or SSS PESO?

For the self-employed and voluntary members, Pag-IBIG MP2 is the more advisable option compared to SSS PESO. It is more practical too more so if you will have a big purchase after five years because MP2 allows members to save as much as they can.

For the employed, SSS PESO is better. The maximum monthly contributions of Php1,760 may be unworkable for the voluntary and self-employed members. If you are saving for your retirement and the maximum monthly contribution is not a problem for you, SSS PESO Fund is the way to go.

How to register for the MP2 program

There are two ways to register.

1) Online registration

Go to Pag-IBIG website.

Click e-Services.

Select MP2 Enrollment System (MP2EF) under Others.

Fill-out and submit the form. Pag-IBIG MID number is needed.

Print the form with the MP2 account number.

Proceed to the nearest branch and present the form.

Start remitting.

2) Employee-assisted registration

Go to the nearest Pag-IBIG branch.

Present a valid ID.

Fill-out the registration form that the staff will give you.

Or you can print and fill out this form before going to the branch to save time.

Obtain the member’s copy with the MP2 account number.

Start remitting.

How to register for the PESO program

There are also two ways to register.

1) Over the counter registration at any SSS branch

Go to the nearest SSS branch.

Fill-out the registration form that the staff will give you.

Or you can print and fill out this form before going to the branch to save time.

Start remitting.

2) Enrollment through My.SSS

Go to SSS website.

Log in to your account.

Registration is required before you may access the E-Services tab.

After logging in, click E-Services.

Select PESO Fund.

Fill-out and submit the enrollment form.

Start remitting.

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[I am not an expert when it comes to government services, but I believe that these are great ways to jumpstart your savings for 2018.]


3 thoughts on “SSS PESO Fund vs. Pag-IBIG MP2: Which savings plan for the Filipinos should you choose?

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