The Central Bank of the Philippines has encouraged businesses to promote Personal Equity and Retirement Account programs, presenting PERA as a voluntary retirement savings option that supplements the Social Security System and the Government Service Insurance System. It highlighted the incentives for employer-sponsored participation, including a 150 percent tax deduction for private employers that match or exceed qualified employees’ PERA contributions, alongside tax-exempt treatment for investments held in PERA accounts. The 150 percent deduction combines the 100 percent deduction under the PERA law with an additional 50 percent incentive under the Capital Markets Efficiency Promotion Act. PERA account holders can invest in stocks, bonds, funds and other products. Locally employed and self-employed individuals may contribute up to PHP 200,000 a year, while overseas Filipinos may contribute up to PHP 400,000. The central bank also pointed to East West Banking Corporation’s April 2026 launch of a voluntary employer-sponsored PERA program as the first by a universal bank and urged other banks and corporations to adopt similar programs, which it sees as a way to broaden the investor base and deepen the capital market.
Central Bank of the Philippines2026-05-21
Central Bank of the Philippines urges businesses to expand PERA retirement programs and highlights 150 percent employer tax deduction
The Central Bank of the Philippines is urging businesses to promote Personal Equity and Retirement Account (PERA) programs as voluntary retirement savings that supplement the Social Security System and Government Service Insurance System. It highlighted tax-exempt treatment for PERA investments, annual contribution limits of PHP 200,000 for locally employed and self-employed individuals and PHP 400,000 for overseas Filipinos, and a 150 percent tax deduction for private employers that match or exceed employees’ PERA contributions. The central bank cited East West Banking Corporation’s April 2026 launch of the first voluntary employer-sponsored PERA program by a universal bank and called on other banks and corporations to adopt similar schemes to broaden the investor base and deepen the capital market.