The Bangko Sentral ng Pilipinas (BSP) is urging businesses to adopt Personal Equity and Retirement Account (PERA) programs for employees, citing tax incentives for both employers and workers.
PERA is a voluntary retirement savings program designed to supplement state-run pension systems such as the Social Security System (SSS) and the Government Service Insurance System (GSIS).
Under the program, private employers that match or exceed the PERA contributions of qualified employees may claim tax deductions equivalent to 150 percent of the employers’ share.
The incentive consists of the 100-percent tax deduction granted under the PERA law and an additional 50-percent deduction under the Capital Markets Efficiency Promotion Act. PERA account holders may invest in stocks, bonds, funds, and other investment products that are exempt from various taxes.
The BSP said East West Banking Corp. became the first universal bank to launch an employer-sponsored PERA program with voluntary enrollment.
The program was introduced across the bank during its town hall meeting on 16 April and forms part of the company’s efforts to promote financial literacy, employee well-being, and long-term financial resilience. Under the initiative, eligible EastWest employees may voluntarily authorize the bank to facilitate contributions to accredited PERA products alongside their personal contributions.
The central bank also encouraged other banks and corporations to implement similar programs for their employees.
“By promoting PERA, businesses can help employees save and invest more, while also benefiting from improved employee satisfaction and retention,” BSP Deputy Governor Lyn I. Javier said.
Beyond retirement savings, the BSP said PERA could help broaden the country’s investor base and deepen the capital market by channeling savings into productive investments that support financial stability and sustainable economic growth.
Locally employed and self-employed individuals may contribute up to P200,000 annually, while overseas Filipinos may invest up to P400,000 per year.