PERA: A Tax-Free Retirement Option for OFWs

Jul 17, 2026

84 min

Jul 17, 2026 02:31

PERA: Tax-free, state-backed retirement account OFWs can use to secure their future

## Introduction to PERA

The Personal Equity and Retirement Account (PERA) is a voluntary retirement savings program in the Philippines, designed to help Filipinos, including Overseas Filipino Workers (OFWs), build long-term wealth. Established under Republic Act No. 9505 in 2008, PERA offers tax incentives to encourage retirement savings beyond mandatory pension plans like the Social Security System (SSS) and the Government Service Insurance System (GSIS).

## Key Features of PERA

PERA allows contributors to invest in BSP-accredited financial products, providing tax-free investment earnings. Contributors can claim a 5% tax credit on their annual contributions, and PERA assets are protected from certain bankruptcy proceedings. Additionally, these assets can be transferred to beneficiaries without estate tax, subject to applicable laws.

## Contribution Limits and Eligibility

Filipinos aged 18 and above with a Tax Identification Number (TIN) can open a PERA account. Residents can contribute up to ₱100,000 annually, while OFWs can contribute up to ₱200,000. Contributors may maintain up to five PERA accounts.

## Benefits for OFWs

For OFWs, PERA provides a structured way to save for retirement, offering tax advantages and a range of investment options. It complements existing pensions and encourages disciplined, long-term saving. OFWs can open and manage PERA accounts through accredited administrators, even while working abroad.

## Investment Options

PERA accounts can include mutual funds, unit investment trust funds (UITFs), government securities, and other BSP-accredited investments. This variety allows contributors to tailor their investments according to their financial goals and risk tolerance.

## Conclusion

PERA is a valuable tool for Filipinos, especially OFWs, to secure their financial future. By offering tax incentives and flexible investment options, it helps build a robust retirement fund, supplementing existing pension plans.

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