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

Updated: February 10, 2020

Which is a better investment, the Pag-IBIG MP2 or the SSS PESO Fund? That’s a question a reader recently asked me and that’s what we’ll try to compare and analyze today.

Pag-IBIG MP2 and SSS PESO Fund are both government savings programs offered to their respective members. The hope is to encourage more Filipinos to save and invest, especially for their retirement.

But first, if you’re not familiar with any of these, then here are some facts about each savings program.


The MP2 Savings Program is a voluntary savings program for members who wish to save more and earn higher dividends than the regular Pag-IBIG Savings Program.

This is open to all active Pag-IBIG Fund Members. And also open to former Pag-IBIG Fund Members with a monthly source of income, including pensioners, regardless of age.

To sign up for Pag-IBIG MP2, you need to submit your duly accomplished MP2 Savings Application Form at a Pag-IBIG Fund Branch, along with a Valid Identification Card and the Passbook or ATM Card of your nominated bank account.


The SSS P.E.S.O. Fund (Personal Equity and Savings Option) is a voluntary provident fund offered exclusively to SSS members in addition to the regular SSS program.

This is open to all employees, self-employed (SE), voluntary (VM), and OFW members who have met the following qualifications:

  • Below 55 years of age;
  • Have paid contributions in the regular SSS program for at least six (6) consecutive months within the 12-month period immediately prior to the month of enrollment;
  • SE, VM, and OFW members should be paying the maximum amount of contributions under the regular SSS program;
  • Have not filed any final claim under the regular SSS program.

To join and invest in the SSS PESO Fund, you can enroll over-the-counter at any SSS branch. You may also register via the My.SSS web site under the “e-services” tab.

Similarities between Pag-IBIG MP2 and SSS Peso Fund

  • They’re both an optional savings program.
  • Your investments are tax-free.
  • They are guaranteed by the Philippine government. This means there’s zero-risk of losing money.
  • Aside from local workers, both are also open to OFWs, as long as they’re regular members.
  • They both earn higher interest rates than an ordinary bank savings account.
  • Invest only when you want. It’s not required to invest monthly. You can just invest one-time if you want.
  • Contributions can be set up as an automatic salary deduction for those locally employed.


Now let’s see the important differences between the two programs.

Age LimitNo age limit55 years old
Minimum InvestmentPhp 500Php 1,000
Maximum InvestmentNo limitPhp 500,000 per year
Historical Growth4.58% to 8.11% per year1.85% to 3.75% per year
Number of Accounts You Can OpenNo limitOne account only
Withdrawal (Other terms apply)All after 5 years, with option to renew for another 5 yearsMaximum of 35% after 5 years, then all the rest at age 60 or upon retirement / total disability

So which is better?

As always, the better investment depends on your financial goals.

However, it looks like that the Pag-IBIG MP2 has more advantages than the SSS PESO Fund because it has easier eligibility, better contribution requirements, higher past performance, and less restrictions.

The Pag-IBIG MP2 is a good investment for most medium and long-term financial goals. While the SSS PESO Fund is more designed for people seeking a low-risk investment for their retirement fund.

Furthermore, do consider which among the two programs would be more convenient for you to open and manage. Learning about Pag-IBIG MP2 and SSS PESO Loan is just the first step. Actually opening an account is your next move.

Lastly, if you want to learn more about these programs, then you can read and download the FAQ PDFs here or contact them directly.

Pag-IBIG Fund Contact Details:
Email: [email protected]
Phone: (+632) 724-4244

SSS Contact Details:
Email: [email protected]
Phone: (+632) 920-6446 to 55

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  1. Thanks a lot for this article sir Fritz. As always, you’ve been an excellent source for my literacy on personal finance since 2010 🙂 God bless you always!

  2. Thanks a lot for this article sir Fitz. As always, you’ve been an excellent source for my literacy on personal finance since 2010 🙂 God bless you always!

  3. Always a good read! You inspire everyone to be financially independent. Arigatougozaimashita. Yoroshiku onegaishimasu.

  4. After reading through several websites about sss peso fund, I thought it was a good savings idea so I went ahead and enrolled. After that, nothing happened. Can’t make any contributions without having my enrollment verified at the branch. Branch have no idea what a peso fund is. Enrollment in limbo. SSS peso fund is nothing but a concept.

    Opened a pag ibig mp2 account online. I also pay regularly online. Seamless process. Opt for this instead.

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