BSP urges employers to promote PERA for workers

The Bangko Sentral ng Pilipinas (BSP) has urged businesses to promote Personal Equity and Retirement Account (PERA) programs for their employees, citing tax incentives for both employers and employees.

In a news release on Thursday, the BSP said private employers who match or exceed the PERA contributions of qualified employees may claim tax deductions equal to 150% of the employer’s share.

In particular, the central bank said the tax incentives consist of the 100% tax deduction under the PERA law and an additional 50% incentive under the Capital Markets Efficiency Promotion Act (CMEPA). PERA is a voluntary retirement savings program.

It supplements state-sponsored pension systems, such as the Social Security System and the Government Service Insurance System.

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

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 P200,000 per year. Overseas Filipinos may contribute up to P400,000 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 encouraged other banks and corporations to adopt similar programs. Beyond retirement savings, the central bank said it views PERA as a way to broaden the investor base and deepen the capital market. —VBL, GMA News