PERA contributions climb - BusinessWorld Online

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PERA contributions climb - BusinessWorld Online
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MORE FILIPINOS invested in the electronic Personal Equity and Retirement Account (PERA), with contributors almost tripling since an online platform for the investment tool was introduced in 2020, the Bangko Sentral ng Pilipinas said on Tuesday. READ:

Contributions also rose by 106% to P289.82 million from P140.76 million recorded in the same period in 2020.

“The BSP encourages Filipinos to take full advantage of the benefits offered under PERA, including the exemption of PERA earnings from taxes on final withholding, capital gains, and regular income,” the central bank said in a statement. The PERA Law or Republic Act 9505 was passed in 2008 with the goal of encouraging Filipinos to save up for their retirement via a new voluntary investment product.

A person aged 18 or older can contribute a maximum of P100,000 yearly under the PERA platform, but the amount may be as much as P200,000 for OFWs. The BSP has said there may be a need to adjust these contribution caps to account for inflation.

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