The Bangko Sentral ng Pilipinas (BSP) announced that contributions to the Personal Equity and Retirement Account (PERA) reached P329.55 million in 2022, a 30 percent increase from P253.35 million in 2021.
As of December 2022, there were 5,100 contributors to PERA, a 16 percent increase from 4,382 in 2021. PERA is the Philippine government’s voluntary retirement savings program.
According to the BSP, of the total contributions, P223.71 million were made by 3,600 employed individuals, P45.25 million by 785 self-employed individuals, and P60.58 million by 721 overseas Filipino workers.
The BSP emphasized the superior benefits of PERA, including a 5 percent tax credit on contributions which can be used to pay for income tax liabilities as well as tax-free distribution on qualified withdrawals.
Any individual with a Tax Identification Number can contribute up to P100,000 annually. Meanwhile, overseas Filipinos are able to contribute up to P200,000 annually.
In 2020, the BSP launched a digitized version of PERA, making it easier for Filipinos to open accounts, choose among different accredited products, and make transactions electronically using their mobile phones or digital devices.
The digitization of PERA has increased the number of contributors, particularly among overseas Filipinos, and has reduced processing time and transaction costs.
PERA was launched in 2016 under Republic Act No. 9505 as a supplement to state-based pension plans and employer-sponsored retirement plans such as the Social Security System and the Government Service Insurance System.