Finance Secretary Frederick Go is considering a common annual contribution ceiling for the Personal Equity and Retirement Account (PERA), potentially changing how much Filipinos can set aside in the voluntary retirement savings program.
The review covers the existing limits of P200,000 a year for regular contributors and P400,000 for overseas Filipino workers (OFWs), with the aim of simplifying the rules and making participation more equitable.
No proposed uniform ceiling has been announced. The Finance department said any adjustment would take into account income levels, financial needs and prevailing economic conditions.
The contribution limits are among several provisions under review as the government seeks to make PERA more attractive to savers and encourage greater participation in long-term investments. Go is also seeking recommendations on strengthening tax incentives, removing barriers to enrollment, raising public awareness and improving access to the program.
“Our goal is to make PERA a more effective tool for helping Filipinos prepare for retirement. We welcome stakeholder recommendations on how to improve the program, strengthen its incentives, and encourage more people to build long-term savings,” Go said.
The government is inviting financial and investment companies, employers, labor groups, pension institutions and other organizations to submit proposals.
Established under Republic Act No. 9505, or the PERA Act of 2008, the voluntary program allows eligible individuals to invest in approved financial products and receive tax incentives, subject to applicable rules.
PERA is designed to supplement retirement benefits from the Social Security System, Government Service Insurance System and other pension programs, while channeling household savings into the domestic capital market.
A uniform contribution ceiling could simplify the program, but its effect on participation will depend on the final limit and whether the government also addresses the practical reasons Filipinos may be reluctant or unable to save for retirement.
For now, the proposal remains under study, with stakeholder feedback expected to guide possible policy and regulatory changes.
