The Bangko Sentral ng Pilipinas (BSP) is encouraging companies to adopt Personal Equity and Retirement Account (PERA) programs, citing the tax benefits available to both employers and employees and the broader role of PERA in strengthening long-term savings.
PERA is a voluntary retirement savings program designed to supplement state-backed pension systems such as the Social Security System (SSS) and the Government Service Insurance System (GSIS).
BSP Deputy Governor Lyn Javier said companies that promote PERA can help workers build additional retirement funds while also improving workplace satisfaction and employee retention.
“By promoting PERA, businesses can help employees save and invest more, while also benefitting from improved employee satisfaction and retention,” Javier said.
The BSP said private employers that match or exceed the PERA contributions of qualified employees may claim tax deductions equivalent to 150 percent of the employer’s share.
This includes a 100-percent tax deduction under the PERA law and an additional 50-percent incentive under the Capital Markets Efficiency Promotion Act.
Employees, meanwhile, may use their PERA accounts to invest in stocks, bonds, funds, and other eligible investment products that are exempt from several taxes.
Locally employed and self-employed individuals may contribute up to P200,000 annually to their PERA accounts, while overseas Filipinos may invest up to P400,000 per year.
The BSP said a key milestone was reached in April 2026 when East West Banking Corporation became the first universal bank to launch an employer-sponsored PERA program with voluntary enrollment.
The central bank said the development should encourage more banks and corporations to offer similar programs to their employees.
Beyond retirement planning, the BSP said PERA can help broaden the country’s investor base and deepen the domestic capital market. It added that channeling long-term savings into productive investments would support financial stability and sustainable economic growth.