BSP pushes PERA program as retirement savings tool

The Bangko Sentral ng Pilipinas is urging businesses to actively promote the Personal Equity and Retirement Account (PERA) program, highlighting its tax incentives and long-term benefits for both employers and workers.

BSP Deputy Governor Lyn Javier said in a statement that encouraging PERA participation can help employees build stronger retirement savings while also improving workplace retention and satisfaction.

“By promoting PERA, businesses can help employees save and invest more, while also benefiting from improved employee satisfaction and retention,” Javier said.

PERA is a voluntary retirement savings scheme designed to complement existing state pension systems such as the Social Security System and the Government Service Insurance System.

Under the program, employers who match or exceed employee contributions may qualify for tax deductions amounting to up to 150 percent of their contribution, combining incentives under existing laws and capital market reforms.

Employees can invest their PERA contributions in instruments such as stocks, bonds, and mutual funds, with tax exemptions on certain investment earnings. Contributions are capped at ₱200,000 annually for locally employed and self-employed individuals, while overseas Filipinos may contribute up to ₱400,000 per year.

The BSP noted that in April 2026, East West Banking Corporation became the first universal bank to launch an employer-sponsored PERA program with voluntary participation, signaling growing private-sector adoption.

The central bank said it is encouraging more financial institutions and corporations to follow suit as part of efforts to deepen capital markets and expand the investor base.

Beyond retirement planning, officials said PERA also supports broader economic goals by channeling household savings into productive investments that contribute to financial stability and sustainable growth.