The Bangko Sentral ng Pilipinas (BSP) is urging companies to adopt and promote the Personal Equity and Retirement Account (Pera) program, highlighting tax incentives that could benefit both employers and workers while helping strengthen long-term retirement savings.
Benefits for Employers and Employees
In a statement, BSP Deputy Governor Lyn I. Javier said that businesses encouraging Pera participation could improve employee retention and satisfaction by helping workers build additional retirement funds. Pera is a voluntary retirement savings program designed to supplement state pension systems such as the Social Security System and the Government Service Insurance System.
Tax Deductions and Incentives
Under existing rules, private employers that match or exceed the Pera contributions of qualified employees may claim tax deductions equivalent to 150 percent of their contribution. The incentive combines the 100-percent deduction under the PERA law and an additional 50-percent deduction provided under the Capital Markets Efficiency Promotion Act.
Investment Options and Contribution Limits
Employees enrolled in Pera may invest in stocks, bonds, mutual funds, and other eligible investment products that are exempt from several taxes. Locally employed and self-employed Filipinos may contribute up to P200,000 annually, while overseas Filipinos may invest as much as P400,000 per year.
Growing Private-Sector Participation
The BSP also cited growing private-sector participation in the program. In April 2026, East West Banking Corp. became the first universal bank in the country to launch a voluntary employer-sponsored Pera program. The central bank said wider adoption of Pera programs could also help deepen the Philippine capital market by channeling more household savings into long-term investments that support economic growth and financial stability.
