HFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPI'INES 
Second Regular Session 
) 
) 
) 
SENATE 
s.B.No.3125 
Introduced by Senator FRANCIS G. ESCUDERO 
EXPLANATORY NOTE 
I" 
The Personnel Economic Relief Allowance (PERA) is a subsidy granted to all 
government workers as a form of assistance to help make ends meet in the face of 
economic crisis as well as higher prices. The original intent of the PERA in the early 
1990s was as an emergency allowance to serve as a buffer against skyrocketing prices of 
basic commodities due to oil price hikes and instability in the Middle East. 
However, higher gasoline prices, higher transportation fares and higher prices of 
basic commodities since the PERA's inception have proven that the PERA augments the 
earnings of a government worker not just as an emergency allowance, but as a major 
source of additional funding to be able to afford basic commodities. Further, any 
adjustments to the PERA will need legislation to further augment the value of the 
allowance versus economic reality. 
Thi,s bill realizes the true worth and intent of the PERA as a form of economic 
relief, and proposes that the PERA be subject to an automatic yearly adjustment 
equivalent to any increase of the annual inflation rate in the country. This makes the 
PERA responsive to the needs of the government worker in the event of high prices. 
In view of the foregoing circumstances, the immediate approval of this measure is 
earnestly urged. 
SEN. FRANCIS G. ESCUDERO 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
) 
) 
) 
SENATE 
s.B.No.3125 
H f:' , , 
''': (3,; 
y-"-
, 
Introduced by Senator FRANCIS G. ESCUDERO 
AN ACT 
PROVIDING AN INCREASE AND AN AUTOMATIC ADJUSTMENT MECHANISM IN 
THE PERSONNEL ECONOMIC RELIEF ALLOWANCE (PERA) GRANTED TO 
GOVERNMENT EMPLOYEES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
1 
SECTION 1. Personnel Economic Relief Allowance (PERA) , The Personnel Economic 
2 
Relief Allowance being granted to employees of the government shall be subject to an automatic 
3 
yearly adjustment equivalent to any increase of the armual inflation rate in the country, 
4 
Concomitantly, upon the effectivity of this Act, the current PERA in the amount of Two 
5 
Thousand Pesos (P2,OOO) per month is hereby adjusted to Four Thousand (P4,OOO) per month, 
6 
SEC. 2, Coverage. The PERA shall be granted to civilian governnlent personnel whether 
7 
employed by the national or local governments, appointive or elective, and whether occupying 
8 
regular, contractual, or casual positions, whose positions are covered by Republic Act No. 6758, 
9 
the "Compensation and Position Classification Act of 1989," as amended, as well as military and 
10 
uniformed personnel, Provided, That government personnel stationed abroad already receiving 
11 
overseas allowances shall not be entitled to the provisions of this Act. 
12 
SEC. 3, Appropriations. For the first year of the implementation of this Act, funds 
13 
necessary for the PERA of national and local government agencies shall be charged against 
14 
savings, which for this purpose includes unreleased appropriations and other programmed 
15 
appropriations. Thereafter, the amount necessary shall be provided in the annual General 
16 
Appropriations Act. 
17 
SEC. 4. Implementing Rules and Regulations. The Department of Budget and 
18 
Management shall issue the corresponding implementing rules and regulations within fifteen 
19 
days from the effectivity of this Act. 


1 
SEC. 5. Repealing Clause. All laws, decrees, resolutions, orders, or parts thereof 
2 
inconsistent with this Act are hereby repealed, amended or modified accordingly. 
3 
SEC. 6. Effectivity. This Act shall take effect fifteen (15) days after the publication in thc 
4 
Official Gazette or in one newspaper off general circulation. 
5 
Approved,