PERA Contributors Surge Nearly Fivefold Amid Wider Access

MANILA, Philippines — The number of Filipinos enrolled in Personal Equity and Retirement Accounts (PERA) rose by nearly five times as of end-June, driven by a sharp increase in self-employed contributors and wider access to the voluntary retirement savings program. Data from the Bangko Sentral ng Pilipinas (BSP) showed that PERA contributors surged by 385 percent to 30,055 as of June 30 from just 6,193 a year earlier. Total investments in PERA accounts climbed by 45.3 percent to P757.55 million from P521.36 million last year. Self-employed individuals accounted for most of the increase, with their number soaring to 23,529 from only 942 last year. Their combined contributions nearly tripled to P207.9 million from P74.29 million. Employee contributors rose by 22.6 percent to 5,441 from 4,437, while their investments increased by 24.1 percent to P449.45 million from P362.24 million a year ago. Meanwhile, the number of overseas Filipino contributors grew by 33.3 percent to 1,085 from 814. The amount they invested rose by 18.1 percent to P100.20 million from P84.83 million. PERA is a voluntary retirement savings program created under Republic Act 9505 that offers tax incentives to individuals and their employers who set aside funds for retirement. The program is designed to supplement existing retirement and social protection systems such as the Social Security System and the Government Service Insurance System, as well as other savings and investment instruments. BSP Governor Eli Remolona Jr. said PERA allows employees and their employers to set aside funds that could provide additional income during retirement. He said the BSP’s Open Finance initiative has made the program more accessible by allowing Filipinos to open PERA accounts and invest through mobile phones. For employers, Remolona said PERA could improve employee benefits, hiring, retention and workplace performance. Employer contributions are also entitled to a 50 percent additional tax deduction. “Every new saver deepens the market for everyone else. More savers mean more capital. For bonds and equity, more companies expanding, more jobs — your PERA works harder because others put theirs to work too,” he said. BSP Deputy Governor Lyn Javier said the central bank is focusing on raising awareness about PERA and its tax advantages, particularly among businesses and employer groups. She said the BSP is working with government agencies to promote PERA among overseas Filipinos and is coordinating with financial institutions to widen the program’s reach. Javier added that other banks, including digital banks, have expressed interest in offering PERA through their platforms. “The product itself is very attractive and should speak for itself, although greater awareness would help,” Javier said. “The pace of growth will depend on several factors, but we would like to see the number of contributors more than double.”