BSP urges firms to adopt PERA for workers

The Bangko Sentral ng Pilipinas is urging businesses to promote Personal Equity and Retirement Account programs for their employees, citing tax incentives that could benefit both employers and workers.

“By promoting PERA, businesses can help employees save and invest more, while also benefitting from improved employee satisfaction and retention,” BSP Deputy Governor Lyn I. Javier said.

PERA is a voluntary retirement savings program designed to supplement state-sponsored pension systems, including the Social Security System and the Government Service Insurance System.

Under the PERA law, a Personal Equity and Retirement Account is established for the exclusive use and benefit of the contributor and may be invested only in PERA investment products in the Philippines.

Private employers that match or exceed the PERA contributions of qualified employees may claim tax deductions equal to 150 percent of the employers’ share.

The BSP said the deduction consists of the 100 percent tax deduction provided under the PERA law and an additional 50 percent incentive under the Capital Markets Efficiency Promotion Act.

Employees with PERA accounts may invest in stocks, bonds, funds, and other products that are exempt from a range of taxes.

Locally employed and self-employed individuals may invest up to PHP 200,000 per year.

Overseas Filipinos may contribute up to PHP 400,000 annually.

In April 2026, East West Banking Corp. became the first universal bank to launch an employer-sponsored PERA program with voluntary enrollment, according to the BSP.

EastWest said in a May 12, 2026, advisory that its voluntary PERA contribution program allows employees to save and invest through accredited PERA products.

The BSP is encouraging other banks and corporations to adopt similar programs.

Beyond retirement savings, the central bank said PERA can help broaden the country’s investor base and deepen the capital market.

The BSP said channeling savings into productive investments supports financial stability and sustainable economic growth.