Filipinos' contributions to their Personal Equity and Retirement Account (PERA) have surged in the first half of the year, with a 45.3% increase to P757.554 million from P521.363 million in the same period last year. The growth is attributed to a significant rise in the number of enrollees, which increased nearly fivefold from last year. The total number of PERA contributors as of the first half ballooned to 30,055 from 6,193 a year ago.
The bulk of the contributions, 59.33%, came from employee contributions, which grew by 24.08% year on year to P449.45 million. Contributions from self-employed Filipinos more than doubled to P207.901 million, while those from overseas Filipinos climbed by 18.12% annually to P100.203 million. Self-employed Filipinos made up the majority of the enrollees, with 23,529 individuals signing up, a 2,398% increase from the previous year.
PERA, a voluntary retirement saving program, was created to supplement benefits from the Social Security System, Government Service Insurance System, and employer-provided plans. Contributors aged 18 and above with a tax identification number are allowed to open a PERA account. The program offers incentives to contributors, including tax exemptions and credits.
The Bangko Sentral ng Pilipinas aims to expand overseas Filipino contributors through partnerships with government agencies and encourage employers to boost the share of employees in the total PERA enrollees. The central bank has also tapped other banks to offer the product in their respective platforms, hoping to reach more Filipinos and increase PERA account enrolments.
The growth of PERA accounts is expected to continue, with plans to further boost public awareness of the program. The goal is to achieve more than double growth in PERA accounts. Efforts to streamline the onboarding process and improve access to the program have been implemented, including the Open Finance for PERA Pilot, which allows customers of several financial institutions to open a PERA account in their respective platforms.
