The Bangko Sentral ng Pilipinas (BSP) has encouraged businesses to promote Personal Equity and Retirement Account (PERA) program, highlighting its tax incentives for both employers and 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 Javier said in a news release on Thursday.

PERA is a voluntary retirement savings program that supplements state-sponsored pension systems, such as the Social Security System and the Government Service Insurance System.

Private employers that match or exceed PERA contributions for qualified employees may claim tax deductions equal to 150 percent of the employer’s share, consisting of a 100 percent tax deduction under the PERA law and an additional 50 percent incentive under the Capital Markets Efficiency Promotion Act.

Under PERA accounts, employees can 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 PHP200,000 per year. Overseas Filipinos may contribute up to PHP400,000 annually.

In April 2026, East West Banking Corporation became the first universal bank to launch an employer-sponsored PERA program with voluntary enrollment. The BSP encourages other banks and corporations to adopt similar programs.

Beyond retirement savings, the BSP sees PERA as a way to broaden the investor base and deepen the capital market.

Channeling savings into productive investments supports financial stability and sustainable economic growth. (PNA)