BSP to businesses: Adopt PERA program, cites tax breaks
The Bangko Sentral ng Pilipinas (BSP) is encouraging businesses to promote Personal Equity and Retirement Account (PERA) programs which have tax incentives for both employers and employees.
“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 in a news release dated May 21.
PERA is a voluntary retirement savings program. It supplements state-sponsored pension systems, such as the Social Security System (SSS) and the Government Service Insurance System (GSIS).
Private employers who match or exceed PERA contributions of qualified employees may claim tax deductions equal to 150 percent of the employers’ share. This consists of the 100 percent tax deduction under the PERA law and an additional 50 percent incentive under the Capital Markets Efficiency Promotion Act (CMEPA).
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 ₱200,000 per year. Overseas Filipinos may contribute up to ₱400,000 annually.
In April 2026, East West Banking Corporation (EWBC) 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.
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