EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
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S. No.
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SENATE
473
*19 JLIL 15 ''.10:38
(T-
Introduced by Senator Ralph G. Recto
AN ACT
INCREASING TO THREE THOUSAND PESOS (P3,000) THE MONTHLY 
PERSONNEL ECONOMIC RELIEF ALLOWANCE 
(PERA) 
GRANTED TO 
GOVERNMENT EMPLOYEES, APPROPRIATING FUNDS THEREFOR AND FOR 
OTHER PURPOSES
EXPLANATORY NOTE
Twenty eight years ago, the Personnel Economic Relief Allowance (PERA) was 
conceived to shield the salaries of public sector employees from the ravages of 
inflation brought about by two debilitating oil price hikes in the latter part of 1990 and 
to prepare them against the possible economic fallout from the Gulf War.
The PERA was intended to help the civil servants tide over increasing cost of 
living until the crisis had subsided. But the financial crisis never left; on the contrary, 
it grew worse. Thus, in order to improve the purchasing power of the peso, which has 
been eroded through time. President Fidel Ramos signed Administrative Order No. 53 
in 1993, implementing the grant of additional compensation in the amount of Five 
Hundred Pesos (P500) per month to public school teachers, uniformed personnel of 
the Philippine National Police and the Armed Forces of the Philippines, and extending 
the benefit to the rest of the personnel of the government.
On June 17, 2009, Joint Resolution Number 4 mandated that the Additional 
Compensation in the amount of One Thousand Five Hundred Pesos (P I,500) and the 
Five Hundred Pesos (P500) PERA, be collectively referred to as PERA in the amount of 
Two Thousand Pesos (P2,000).


This bill seeks to increase the monthly PERA granted to public sector employees 
to P3,000 in order to supplement the public employees' salaries in the midst of rising 
cost of living and to make their total compensation approximate those received in the 
private sector.
The budgetary outlay for this proposal is admittedly substantial and would 
require additional funding sources. However, government's fiscal position has 
remarkably improved as evidenced by our stronger macroeconomic fundamentals and 
positive credit rating adjustments. Credit upgrades lessen the cost of government 
borrowings and frees up resources that can be tapped for other uses. This is not to 
mention the steady stream of revenues from administrative reforms and from 
measures rationalizing tax collections such as the TRAIN Law.
Increasing the salaries of our public servants is a means of recognizing the 
value of their contribution to public service, which should not go unreciprocated. No 
matter how minimal, such increase would definitely redound to an energized and 
motivated public service corps who would perform and deliver the government's 
performance targets.
I 
invite Presidential endorsement of the bill even as I urge immediate Senate 
action on it.
/FMPC


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
S. No. 
473
pi •
'19 
JUL 15 
A10:38
RECE'’; . u -
Introduced by Senator Ralph G. Recto
AN ACT
INCREASING TO THREE THOUSAND PESOS (P3,000) THE MONTHLY 
PERSONNEL ECONOMIC RELIEF ALLOWANCE 
(PERA) 
GRANTED TO 
GOVERNMENT EMPLOYEES, APPROPRIATING FUNDS THEREFOR AND FOR 
OTHER PURPOSES
Be it enacted by the Senate and House o f Representatives o f the Philippines in 
Congress assembled:
1 
Section 1. Increase in Monthly Allowance. -  The Personnel Economic Relief
2 
Allowance (PERA) granted to government employees is hereby increased from the
3 
present Two Thousand Pesos (P2,000) per month to Three Thousand Pesos (P3,000)
4 
per month effective January 1, 2020.
5 
Sec. 2. Coverage. -T he PERA shall be granted to civilian government personnel
6 
whether employed by the national or local governments, appointive or elective, and
7 
whether occupying regular, contractual, or casual positions, whose positions are
8 
covered by Republic Act No. 6758, otherwise known as the "Compensation and
9 
Position Classification Act of 1989," as amended, as well as to military and uniformed
10 
personnel.
11 
Sec. 3. Funding. -  The funds necessary to implement the benefit herein
12 
authorized for national government employees shall be included in the annual General
13 
Appropriations Act.
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For Local Government Units (LGUs), the benefit shall be charged against
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respective local funds. Any deficiency shall be charged against the unexpended
16 
balances of CY 2019 Appropriations of LGUs which are hereby authorized to be


1 
realigned for the purpose herein. Thereafter, the amount necessary shall be provided
2 
in their respective annual local budgets.
3 
For Government-Owned and/or -Controlled Corporations, the benefit shall be
4 
charged against their respective corporate funds.
5 
Sec. 4. Implementing Rules and Regulations. -T h e  Department of Budget and
6 
Management shall issue the implementing rules and regulations not later than thirty
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(30) days from the approval of this Act.
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Sec. 5. Repealing Clause. -  All laws, decrees, orders, rules and regulations, or
9 
portions thereof, inconsistent with this Act are hereby repealed or modified
10 
accordingly.
11 
Sec. 6. Effectivity. -  This Act shall take effect fifteen (15) days following its
12 
publication in the Official Gazette or in two (2) newspapers of general circulation.
Approved,