The Central Bank of the Philippines used a forum in Manila to press for wider use of the Personal Equity and Retirement Account (PERA) as a workplace benefit, framing employer participation as a way to strengthen employees’ long-term retirement savings. The central message was that companies can do more than leave PERA to individual uptake by facilitating enrollment, integrating it into benefits programs, or contributing directly to employees’ accounts alongside mandatory Social Security System and Government Service Insurance System coverage. PERA is a voluntary retirement savings program established under the PERA Act of 2008. Individuals based in the Philippines may contribute up to PHP 200,000 a year, while Filipinos based abroad may contribute up to PHP 400,000 a year. Earnings and withdrawals from age 55 are tax free. Accounts may be opened individually or through employer-led arrangements, and employer contributions qualify for tax incentives. Under a provision of the Capital Markets Efficiency Promotion Act passed in 2025, the tax deduction available to employers on their PERA contributions increased to 150% from 100%. At the forum, the central bank said its objective is to move from awareness to implementation, with discussions focused on retirement planning, pension funding, and how employers can incorporate PERA into workplace financial wellness programs.
Central Bank of the Philippines2026-07-10
Central Bank of the Philippines pushes employer led PERA adoption with 150% tax deduction incentive
The Central Bank of the Philippines is urging employers to adopt the Personal Equity and Retirement Account as a workplace retirement benefit rather than leaving participation to individual employees alone. PERA allows annual contributions of up to PHP 200,000 for residents in the Philippines and PHP 400,000 for Filipinos abroad, with tax-free earnings and withdrawals from age 55. Employer contributions now qualify for a 150% tax deduction, up from 100% under a 2025 law.