The Proposed
PERA Increase Bill
Legislative efforts in the House and Senate aim to raise the Personnel Economic Relief Allowance (PERA) to ₱5,000, assisting state workers in coping with the rising cost of living.
Proposed Amount
₱5,000
Monthly allowance
Current Amount
₱2,000
Unchanged since 2009
Adjustment Rate
150%
Significant rate increase
Future Updates
Automatic
Mandatory periodic reviews
Addressing the Impact of Inflation
The Personnel Economic Relief Allowance (PERA) was established to help government personnel weather economic difficulties. However, the allowance has been stagnant at ₱2,000 since 2009. With the continuous inflation over the past decade heavily diminishing the purchasing power of the Philippine Peso, civil servants have long advocated for a structural update.
Consolidating multiple pending bills in both the House of Representatives and the Senate, lawmakers are pushing to mandate a 150% increase, elevating the PERA to ₱5,000. This move is recognized as a vital step toward providing a livable wage to the backbone of the government workforce—including teachers, healthcare workers, and administrative staff.
Key Provisions of the Legislation
Coverage & Funding
- • Universal Coverage: Applies to all civilian government employees (regular, contractual, casual) and uniformed personnel.
- • Tax Exemption: Like the current PERA, the proposed ₱5,000 allowance remains non-taxable.
- • National Budget: Funding will be sourced from the annual General Appropriations Act (GAA).
Future-Proofing
- • Automatic Reviews: Introduces a mechanism for mandatory review and adjustment every three years.
- • Inflation Indexing: Future adjustments will be heavily based on the prevailing Consumer Price Index (CPI).
- • Agency Accountability: DBM and DOF mandated to ensure timely implementation.
Supporting the Frontlines
Beyond just an economic policy, lawmakers frame the PERA increase as a matter of dignity and fairness for millions of state workers.
While finding the budgetary space remains a challenge for the Department of Budget and Management (DBM), advocates argue that investing in the workforce directly translates to more efficient and motivated public service delivery.
"The ₱2,000 PERA granted in 2009 is no longer sufficient to aid our government personnel... It is only just and proper that we augment this to help them keep up with the times."
— Excerpt from Explanatory Notes of the Bill
