PERA program expands employer participation in retirement savings

Companies may receive tax incentives for matching employee contributions under BSP-supported initiative.

Employer-backed retirement savings is getting a push through the Personal Equity and Retirement Account (PERA), a voluntary program that allows companies to match employee contributions while building long-term investment accounts for workers. 

It opens access to investments in stocks, bonds, funds, and other instruments with tax exemptions, with contribution caps set at ₱200,000 for locally employed and self-employed individuals, and ₱400,000 for overseas Filipinos.

The Bangko Sentral ng Pilipinas is encouraging wider adoption, with Deputy Governor Lyn Javier saying companies that match or exceed employee PERA contributions may claim tax deductions equal to 150% of their share. The incentive combines the existing PERA framework with additional benefits under the Capital Markets Efficiency Promotion Act, giving employers a stronger case to participate.

In April 2026, East West Banking Corporation became the first universal bank to roll out an employer-sponsored PERA program with voluntary enrollment, according to the BSP.

The central bank is now urging more banks and corporations to adopt similar programs, framing PERA as a way to widen access to investing while channeling more household savings into long-term productive use.

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