PERA for employers, and the new 2025 rules
PERA is a voluntary retirement savings account with real tax perks. As of 2025 the contribution limits roughly doubled, and employers can now claim a deduction for contributing to their employees' PERA. Here is what that means for your company.
What is PERA?
PERA, the Personal Equity and Retirement Account, was created under Republic Act 9505. It is a voluntary retirement savings account that sits on top of mandatory coverage like SSS or GSIS and any company retirement plan. An individual contributes, chooses from accredited investment products, and earns specific tax incentives for saving toward retirement.
The tax incentives
- A 5 percent tax credit on contributions, up to the annual limit, usable against income tax.
- Tax exempt investment income earned within the PERA.
- Tax free qualified distributions, once the account holder reaches age 55 with at least five years of contributions.
What changed in 2025
Two changes made PERA far more attractive:
- Higher limits. The maximum annual contribution rose from ₱100,000 to ₱200,000 for locally employed and self employed individuals, and from ₱200,000 to ₱400,000 for overseas Filipinos.
- Employer deduction. Under the Capital Market Efficiency Promotion Act and Revenue Regulations No. 22-2025, a qualified employer can now claim an additional deduction for contributions it makes to an employee's PERA, for contributions made from 1 July 2025 onwards.
Why employers should care
PERA gives you a low cost, high value way to strengthen your benefits package. You can contribute to or match employees' PERA, which is now deductible, while employees get tax advantaged retirement savings on top of their company plan. It is a clean win for retention and total rewards, without the overhead of building a new plan from scratch.
Zalamea as your PERA partner
Zalamea is an accredited PERA Administrator under both the SEC and the BSP, one of very few firms authorized to administer Personal Equity and Retirement Accounts. We help employers fold PERA into their compensation and benefits, and we administer the accounts end to end.
For individuals
- If you want to open and manage your own account, ezPERA is our app for individuals. Open your account with ezPERA.
Key takeaways
- PERA is a voluntary, tax advantaged retirement account under RA 9505.
- Contributions earn a 5 percent tax credit, investment income is tax exempt, and qualified withdrawals from age 55 are tax free.
- In 2025 the limits doubled to ₱200,000 for locals and ₱400,000 for overseas Filipinos.
- Employers can now deduct contributions made to employees' PERA.
- Zalamea is an SEC and BSP accredited PERA Administrator.
This article is general information, not legal, tax, or accounting advice. Philippine laws and regulations are updated from time to time, so confirm the specifics that apply to your company with your advisor.
Frequently asked questions
What is PERA and how does it work?
PERA, the Personal Equity and Retirement Account under RA 9505, is a voluntary retirement savings account that sits on top of SSS or GSIS and any company plan. You contribute, choose accredited investments, and receive tax incentives for saving toward retirement.
What are the PERA contribution limits in 2025?
The maximum annual contribution is PHP 200,000 for locally employed and self employed individuals, and PHP 400,000 for overseas Filipinos, raised from PHP 100,000 and PHP 200,000 respectively under the Capital Market Efficiency Promotion Act.
What tax benefits does PERA give?
Contributions earn a 5 percent tax credit up to the annual limit, investment income within the account is tax exempt, and qualified distributions from age 55 with at least five years of contributions are tax free.
Can employers contribute to an employee's PERA?
Yes, and under the 2025 rules a qualified employer can claim an additional deduction for contributions made to an employee's PERA from 1 July 2025 onwards, which makes PERA a tax efficient addition to a benefits package.
Is Zalamea an accredited PERA Administrator?
Yes. Zalamea is accredited as a PERA Administrator by both the SEC and the BSP, and helps employers integrate PERA into their compensation and administer the accounts.
Talk to a Zalamea specialist
Tell us about your company and we will outline the right next step, whether that is a valuation, a plan setup, or a benefit review.