PERA contributions climb by 24%
PERSONAL Equity and Retirement Account (PERA) contributions jumped by 24.3% in the first half of the year, data from the central bank showed.
Contributions to PERA rose to P457.6 million in the first semester from P368 million in the same period a year ago, according to data from the Bangko Sentral ng Pilipinas’ (BSP) website.
The total number of contributors likewise rose by 5.3% to 5,688 in the period from 5,402 a year earlier.
Broken down, the bulk or 69% of the total were employee contributions, equivalent to P315.7 million.
This was followed by overseas Filipino worker (OFW) contributions at P78.8 million, and self-employed contributions at P63.1 million.
Launched in 2016, the PERA is a voluntary fund scheme meant to supplement retirement benefits from the Government Service Insurance System or the Social Security System, as well as private employers.
Contributors aged 18 and above and have a tax identification number are allowed to open a PERA account. Self-employed and locally employed contributors can make an annual contribution of P200,000 while OFWs can invest up to P400,000.
The PERA Law also offers various incentives to contributors, such as tax exemptions on earnings from PERA investments, a 5% income tax credit on contributions that can be used for paying income tax liabilities, and a tax-free distribution on qualified withdrawal of PERA investments.
In 2020, the BSP launched the digital platform for PERA to make it more accessible, allowing Filipinos to open PERA accounts, choose different accredited products, and settle transactions online.
Central bank officials said last month that PERA take-up has been slow despite the scheme’s digitalization. They said wider use of PERA can help increase government savings, foster investment and capital market development, which would support economic growth.
The BSP is also working to incorporate open finance in the PERA program, they said. — L.M.J.C. Jocson