ALBAY 2nd District Representative Joey Salceda, Chairman of the House Committee on Ways and Means, has highlighted a new incentive for private employers who contribute to their employees’ Personal Equity and Retirement Account (PERA) under Republic Act No. 9505. The law, originally enacted in 2008, aims to encourage Filipinos to build their retirement savings through tax-advantaged investment accounts.
Under the new provision, private employers who match their employees’ PERA contributions will be eligible for an additional tax deduction of 50% of their actual contributions. However, this benefit will only apply to employers who contribute to all their employees’ PERA accounts and will be subject to the maximum contribution limits set under RA 9505.
Boosting Retirement Savings and Employer Benefits
Salceda emphasized that the move will encourage businesses to help their employees secure their financial future while also benefiting from tax relief.
“This provision incentivizes employers to support their workforce’s long-term financial security,” Salceda said. “By making PERA contributions more attractive for businesses, we strengthen retirement savings in the country.”
The additional deduction provides tax relief for businesses, motivates companies to invest in their employees’ future, and enhances financial security for Filipino workers by boosting their retirement savings.
The PERA Act of 2008 was designed to function similarly to retirement accounts in other countries, such as the 401(k) in the United States, allowing Filipinos to invest in tax-free savings that they can access upon retirement.
With this new provision, lawmakers aim to increase participation in PERA and ensure more Filipinos have adequate savings for their future.
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