Notes · English

MP2 dividend vs inflation: ₱1 million in Pag-IBIG MP2 became about ₱1.98 million in 10 years, ahead of prices but behind M2

Pag-IBIG MP2 dividend rates for 2016–2025, compounded, turn ₱1,000,000 into about ₱1,977,916 (7.06% a year). Philippine consumer prices rose 1.42 times over the same ten years and peso M2 2.45 times. Which year MP2 lost to inflation, which rates rest only on secondary tables, and why an MP2 dividend and an SSS pension are different kinds of return.

CapsWindowPublished: October 26, 2026

RetirementPensionsInflationM2Interest rates

Key takeaways

Compounding Pag-IBIG's MP2 dividend rates for 2016 to 2025 turns ₱1,000,000 into about ₱1,977,916, or 7.06% a year (CapsWindow calculation, assuming each year's dividend stays in the account).
Over the same ten years (December 2015 to December 2025) the Philippine headline CPI rose 1.4192 times, so MP2 grew about 1.39 times in real terms. MP2 fell short of inflation in one year, 2022, when the dividend was 7.03% and December-on-December inflation was 8.05%.
Peso M2 (depository corporations M2, not M3) grew 2.4488 times over the same period, so MP2 reached about 0.81 of the growth in the money stock and stayed behind it at every year-end.
MP2 is a voluntary, government-guaranteed savings program that pays a declared dividend; the SSS is a defined-benefit social insurance scheme whose pension does not depend on a personal return. The 2016 and 2022 MP2 rates were confirmed only through two matching secondary tables. Past dividends do not guarantee future ones.

Many Filipino savers check one number each February: the Pag-IBIG MP2 dividend. Put ten of those numbers together and set them against prices and the money supply, and the picture is mixed. MP2 stayed comfortably ahead of inflation, but the amount of money in the economy grew faster still.

How much did MP2 grow in ten years?

About 1.98 times. Compounding the declared MP2 dividend rates for 2016 to 2025 turns ₱1,000,000 into about ₱1,977,916, a geometric average of 7.06% a year. The 2025 rate, 7.12%, was announced on 27 February 2026 (Pag-IBIG Fund via ZBNI).

₱1,977,916

₱1,000,000 compounded at Pag-IBIG MP2 dividend rates for 2016–2025, assuming each year's dividend stays in the account (7.06% a year). CapsWindow calculation from the declared annual rates; it is not an official Pag-IBIG cumulative return.

Visual guide

How much did MP2 grow in ten years?

Real (Dec/Dec basis)

20165.02%
20182.11%
20202.75%
20212.83%
20233.00%
20255.22%

Shared linear scale from zero. Negative values extend left. Selected entries from the table below. Its dates, units, definitions and limitations still apply.

Sources ↓

Year	MP2 dividend	CPI, Dec/Dec	Real (Dec/Dec basis)	Source of the rate
2016	7.43%	2.29%	5.02%	Secondary tables only
2017	8.11%	2.88%	5.08%	SunStar
2018	7.41%	5.19%	2.11%	Philstar
2019	7.23%	2.37%	4.75%	BusinessWorld
2020	6.12%	3.28%	2.75%	Philstar
2021	6.00%	3.08%	2.83%	BusinessWorld
2022	7.03%	8.05%	−0.95%	Secondary tables only
2023	7.05%	3.94%	3.00%	ABS-CBN News
2024	7.10%	2.90%	4.08%	GMA News
2025	7.12%	1.80%	5.22%	Pag-IBIG Fund

CPI changes and real rates are CapsWindow calculations from the Philippine headline CPI (2010=100, linked by BIS) in this site’s data; the real rate is (1 + dividend) ÷ (1 + inflation) − 1. The 2016 and 2022 rates match in two secondary tables, SweldoPH and assistance.ph, but this note did not find Pag-IBIG’s original announcements for those years. One 2025 article rounds the 2023 rate to 7.0%; the 2023 announcement gives 7.05%, which is used here.

Did it beat inflation?

Yes, by a clear margin over the decade. The CPI rose 1.4192 times from December 2015 to December 2025 (3.56% a year), so ₱1,977,916 is about 1.39 times the starting amount in December 2015 prices.

MP2 fell short of inflation in one year: 2022, when the dividend was 7.03% and December-on-December inflation was 8.05%. Measured against annual-average inflation, which was 5.82% in 2022, no year fell short. On the December basis, 2018 was the next closest year, at 7.41% against 5.19%.

How does it compare with the money supply (M2)?

It fell behind. Peso M2, measured as end-period depository corporations M2 (M1 plus quasi-money, not M3), grew from about ₱8.07 trillion in December 2015 to ₱19.75 trillion in December 2025, or 2.4488 times (9.37% a year). MP2 grew 1.9779 times, about 0.81 of M2’s growth.

December of	MP2 (₱1,000,000 in Dec 2015)	CPI (same scale)	M2 (same scale)
2016	1,074,300	1,022,926	1,133,028
2018	1,247,487	1,106,987	1,373,473
2020	1,419,547	1,170,306	1,681,390
2022	1,610,501	1,303,493	1,973,164
2024	1,846,449	1,394,105	2,272,669
2025	1,977,916	1,419,214	2,448,761

CapsWindow calculation from MP2 dividend rates and this site’s CPI and M2 series (M2 from the BSP depository corporations survey; recent months preliminary). M2 was ahead of MP2 at every year-end in this period. M2 counts deposits and currency in the whole economy; outgrowing it is a much higher bar than outgrowing consumer prices, and it is not a target MP2 is designed to meet. The result applies to December 2015 to December 2025 only.

Is the MP2 dividend the same as a pension return?

No. “Return” means different things for the Philippines’ main long-term savings vehicles.

	Pag-IBIG MP2	Pag-IBIG Regular Savings	SSS
Type	Voluntary savings, government-guaranteed	Regular member savings	Defined-benefit social insurance
What you receive	Declared annual dividend	Declared annual dividend	Pension set by the benefit formula
Latest rate	7.12% (2025)	6.62% (2025)	No personal return; contribution rate 15% since January 2025

MP2 is a voluntary five-year savings program, and its dividend comes from the fund’s net income: Pag-IBIG paid out 98.6% of 2025 net income of ₱65.28 billion as dividends, against a legal minimum of 70% (Pag-IBIG Fund via ZBNI). Regular Savings earned less in every year this note could confirm: 6.73% in 2019, 5.50% in 2021, 6.55% in 2023, 6.60% in 2024 and 6.62% in 2025. The other years were not found, so no ten-year figure is calculated for Regular Savings.

The SSS works differently. Members pay contributions, which rose to 15% of monthly salary credit in January 2025, the last step under RA 11199, with the salary credit range raised to ₱5,000–₱35,000 (Gulf News). The pension is set by the benefit formula, not by how the fund’s investments did in a given year. This note did not find annual SSS investment return rates, so it does not place the SSS beside MP2 in a return table.

What has happened in 2026?

The 2025 results were announced early in 2026; figures for 2026 itself are not yet available.

27 February 2026: Pag-IBIG declared record dividends of ₱64.34 billion for 2025, with MP2 at 7.12% and Regular Savings at 6.62%. Savings collections in 2025 were ₱160.41 billion (Daily Tribune).
16 February 2026: the SSS reported 2025 net income of ₱142.97 billion (+58.4%), total assets of ₱1.26 trillion (+22.1%) and a reserve fund above ₱1 trillion for the first time. It paid ₱304.94 billion in benefits in 2025, is raising retirement and disability pensions by 10% a year and survivor pensions by 5% a year in 2025–2027, and cut its loan rate from 10% to 8% (Department of Finance, Philstar). The January 2025 report on the contribution increase projected the fund’s life to extend to 2053.

What would 30 years of monthly saving look like?

This is an assumption, not a forecast. Saving ₱1,000 a month for 30 years means ₱360,000 in deposits.

Assumed annual rate	Value after 30 years
7.06% (MP2’s 2016–2025 average)	₱1,182,114
2.00%	₱491,263
7.06%, in today’s money at 3.56% inflation a year	about ₱413,538

CapsWindow calculation with monthly compounding. MP2 matures after five years, so the 30-year path assumes rejoining at each maturity at the same rate. The 3.56% inflation figure is the 2015–2025 annual average and is used here as an assumption.

To test your own monthly amount and rate, use the asset growth calculator.

Calculate your own monthly plan →

Past dividend rates do not guarantee future ones. The ten-year figure compounds declared annual rates and assumes every dividend stays in the account; members who took annual payouts, joined mid-year or saved at different times will have different results. MP2 dividends are calendar-year rates, while CPI and M2 are compared December to December; the real result also depends on whether December or annual-average inflation is used. The 2016 and 2022 MP2 rates are confirmed only through secondary tables. M2 here is depository corporations M2, not M3, and recent months are preliminary. The SSS and MP2 are different kinds of program, and this note does not rank them. Nothing here is a recommendation to join or contribute to any program.

Questions & answers

What is the MP2 dividend rate for 2025?

7.12%, announced by Pag-IBIG Fund on 27 February 2026. The Regular Savings rate for 2025 is 6.62%. Total dividends for 2025 were a record ₱64.34 billion.

Did MP2 beat inflation over the last ten years?

Yes, on this calculation. Compounding the 2016–2025 dividend rates turns ₱1,000,000 into about ₱1,977,916, or 7.06% a year, while the CPI rose 1.4192 times from December 2015 to December 2025, leaving about 1.39 times in real terms. The one year MP2 fell short was 2022: 7.03% against December-on-December inflation of 8.05%. On annual-average inflation (5.82% in 2022) no year fell short.

Did MP2 keep up with the money supply?

No. Peso M2 grew 2.4488 times from December 2015 to December 2025, against 1.9779 times for MP2, a ratio of about 0.81. M2 was ahead of MP2 at every year-end in that period. The comparison holds for this window only and would need recalculating for a different one.

Is an SSS pension comparable to an MP2 dividend?

Not directly. The SSS is a defined-benefit scheme: members pay contributions (15% of monthly salary credit since January 2025) and receive a pension set by the benefit formula, not by a personal investment return. This note did not find annual SSS investment return rates, so it does not compare them with MP2.

Source

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