Saving for Retirement and PERA in the Philippines: A Guide for Employers

When you hire employees abroad you enter a new social security and benefits system, that may look very different from your home country. A key part of those benefits is the opportunity for employees to save for retirement starting early in their career.

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The Philippines has a pension element to their social security system with required contributions from employers and employees.  But there is also a voluntary retirement program called the Personal Equity and Retirement Account (PERA).  This is similar to the IRA program in the US, where an employee can supplement their pension with additional retirement contributions from income.

How can employees save for retirement?

With a PERA, Filipino employees can make monthly contributions in payrolls toward retirement.  Any Filipino worker over 18 who has the capacity to be employed and has a tax ID number is eligible for a PERA.  There is an annual maximum of PHP 100,000 (PHP 200,000 for offshore workers), and all contributions and investment gains or distributions are tax-free.

Is contributing to PERA mandatory for employers?

Employers may... read more 

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Tim Burgess

Director, Shield GEO Services Ltd