What are the differences among these Pag-ibig Fund programs?
Mandatory Pag-ibig
Regular Pag-ibig
Pag-ibig 1
Pag-ibig 2
MP2
POP
Pag-ibig 1, Regular Pag-ibig and Mandatory Pag-ibig are all the same. This is the regular Pag-ibig program -- the first savings program offered by Pag-ibig or HDMF. Pag-ibig 1 is mandatory for all employers and employees in the Philippines and OFWs.
The mandatory contribution for Employees is 100 pesos.
(Less than 100 pesos if monthly salary is lower than 5,000 pesos)
100 pesos from the employee and 100 pesos from the employer. Total is 200 pesos.
Employees can increase their monthly contributions to Pag-ibig 1, but they cannot force their employers to match their increase.
The minimum contribution for Voluntary Members, Self-Employed and other types of members is 200 pesos. OFWs are allowed to start with 100 pesos monthly, usually first paid through their OEC payment.
It has just been announced by Pag-ibig that the mandatory contribution will be increased to 150 pesos starting January 2021.
If you are a Pag-ibig 1 member, you can apply for a housing loan or a multi-purpose loan if you have accumulated at least 24 monthly contributions.
If you're a new member and you want to apply for a housing loan immediately, you can pay a lump-sum amount to make up for the 24-contribution requirement.
You can claim your Pag-ibig 1 savings after you have accumulated 240 monthly contributions and you're already 45 years old or more.
You can also claim after you get into one of these conditions:
. when you turn 60 years old
. when you retire early under your company's early retirement fund
. if you get permanently disabled
. if you migrate to another country
In case of death, beneficiaries will claim the benefits, if not yet claimed by the member.
Pag-ibig 2 and MP2 are the same. MP2 means Modified Pag-ibig 2. This is optional, and this is offered to Pag-ibig 1 members. If you like to save under MP2, first be a member of Pag-ibig 1.
Pag-ibig 2 has a term of 5 years. You can get your total Pag-ibig 2 savings plus dividends after 5 years.
If you like, you can renew your account for another 5 years, so you can save more and earn more dividends.
The minimum monthly savings amount for MP2 is 500 pesos. There is no maximum limit. The MP2 interest rate is higher than the interest rate for Pag-ibig 1.
MP2 is not the basis for housing loan or multi-purpose loan applications. The basis is your Pag-ibig 1 account.
POP means Pag-ibig Overseas Program. This was launched in 1991 as Pag-ibig Filipino Overseas Workers Program. It was offered to all Filipinos working or living abroad.
This POP program is still on-going for many overseas members, but it's no longer open to new members, as there is already the MP2 program, and the Pag-ibig 1 program is already mandatory for OFWs.
There are no longer POP enrollment forms in the Forms page of the Pag-ibig website. Most probably, POP is in its winding stage, to be permanently closed after the last 5-year or 10-year-term accounts are fully served.
Mandatory Pag-ibig
Regular Pag-ibig
Pag-ibig 1
Pag-ibig 2
MP2
POP
Pag-ibig 1, Regular Pag-ibig and Mandatory Pag-ibig are all the same. This is the regular Pag-ibig program -- the first savings program offered by Pag-ibig or HDMF. Pag-ibig 1 is mandatory for all employers and employees in the Philippines and OFWs.
The mandatory contribution for Employees is 100 pesos.
(Less than 100 pesos if monthly salary is lower than 5,000 pesos)
100 pesos from the employee and 100 pesos from the employer. Total is 200 pesos.
Employees can increase their monthly contributions to Pag-ibig 1, but they cannot force their employers to match their increase.
The minimum contribution for Voluntary Members, Self-Employed and other types of members is 200 pesos. OFWs are allowed to start with 100 pesos monthly, usually first paid through their OEC payment.
It has just been announced by Pag-ibig that the mandatory contribution will be increased to 150 pesos starting January 2021.
If you are a Pag-ibig 1 member, you can apply for a housing loan or a multi-purpose loan if you have accumulated at least 24 monthly contributions.
If you're a new member and you want to apply for a housing loan immediately, you can pay a lump-sum amount to make up for the 24-contribution requirement.
You can claim your Pag-ibig 1 savings after you have accumulated 240 monthly contributions and you're already 45 years old or more.
You can also claim after you get into one of these conditions:
. when you turn 60 years old
. when you retire early under your company's early retirement fund
. if you get permanently disabled
. if you migrate to another country
In case of death, beneficiaries will claim the benefits, if not yet claimed by the member.
Pag-ibig 2 and MP2 are the same. MP2 means Modified Pag-ibig 2. This is optional, and this is offered to Pag-ibig 1 members. If you like to save under MP2, first be a member of Pag-ibig 1.
Pag-ibig 2 has a term of 5 years. You can get your total Pag-ibig 2 savings plus dividends after 5 years.
If you like, you can renew your account for another 5 years, so you can save more and earn more dividends.
The minimum monthly savings amount for MP2 is 500 pesos. There is no maximum limit. The MP2 interest rate is higher than the interest rate for Pag-ibig 1.
MP2 is not the basis for housing loan or multi-purpose loan applications. The basis is your Pag-ibig 1 account.
POP means Pag-ibig Overseas Program. This was launched in 1991 as Pag-ibig Filipino Overseas Workers Program. It was offered to all Filipinos working or living abroad.
This POP program is still on-going for many overseas members, but it's no longer open to new members, as there is already the MP2 program, and the Pag-ibig 1 program is already mandatory for OFWs.
There are no longer POP enrollment forms in the Forms page of the Pag-ibig website. Most probably, POP is in its winding stage, to be permanently closed after the last 5-year or 10-year-term accounts are fully served.