THIRTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
) 
First Regular Session 
1 
Senate Bill No. 
Introduced by Senator Francis N. Pangilinan 
EXPLANATORY NOTE 
In 1990, government workers received an emergency allowance to serve 
as buffer against the skyrocketing prices of commodities brought about by the 
oil price hikes and the Middle East crisis. 
The Personnel Economic Relief Allowance (PERA), a subsidy of P1,OOO 
per month, was granted to all government workers to “temporarily” assist 
them “make ends meet” until after the crisis was over. However, after the 
Middle East crisis, the country was faced with other concerns such as higher 
gasoline prices, increased in transportation fares and increased prices of basic 
commodities. These have further plunged the people into harder and tougher 
conditions. 
Over the last decade, prices of goods have more than doubled, while the 
purchasing power of the peso has eroded by more than 60 percent. A peso in 
1988 could only buy around 40 centavos of goods today. 
Thus, it i s  imperative to immediately address the need to augment the 
earnings of the government workers by way of increasing the PEW from P1,OOO 
to P2,OOO. 
The budget outlay for this proposal is admittedly huge, as Government 
has to provide for the country’s 1.5 million civil servants. But still the amount 
is a miniscule percentage of the country’s national budget compared to what 
government pays our foreign creditor banks annually. 
It is about time the government increases the PERA of civil servants to 
motive and stimulate them to perform and deliver services more efficiently for 
the national good. 
Likewise, the incentives of this nature would enhance 
government workers’ attitude toward work since an increase in the PERA would 
one way or another address the financial concerns of the government workers. 
In view of the foregoing circumstances, the immediate approval of this 
measure is earnestly urged. 


THIRTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'04 JUL - 7  
P I  :I 6 
S E N A T E  
Senate Bill No. 
1 
Introduced by Senator Francis N. Pangilinan 
AN ACT INCREASING TO TWO THOUSAND PESOS (P2,OOO) 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 the House of Representatives of the 
Philippines in Congress assembled: 
SECTION 1. lncrease in Monthly Allowance. 
- 
The Personnel 
Economic RQlief Allowance (PERA) granted to government employees is hereby 
increased from the present One Thousand Pesos (P1,OOO) per month to Two 
Thousand Pesos (P2,OOO) per month. 
SECTION 2. Beneficiaries. - Those who are qualified to receive the 
benefit under this Act are the following government employee groups: 
a) 
Appointive national government employees occupying itemized 
plantilla positions; 
b) 
Appointive local government employees and members of local 
legislative bodies occupying itemized plantilla positions; 
c) 
Non-commissioned and enlisted personnel of the Philippine 
National Police and the Armed Forces of the Philippines who are 
receiving regular basic salary; 
Employees in government-owned and/or controlled corporations 
occupying itemized plantilla positions, except those who are 
receiving similar allowances under corporate policy or practice. 
d) 
Casual employees who have rendered at least twelve (12) months 
continuous or uninterrupted service upon the effectivity of this Act or 
thereafter shall be likewise granted this benefit. 
SECTION 3. Funding. - For Calendar Year 2004, the benefit herein 
authorized for national government employees shall be charged against savings, 
which for the purpose includes unexpended or unreleased appropriations under 
Republic Act 8522 and other programmed appropriations. 
Thereafter, the 
amount necessary shall be included in the annual General Appropriations Act. 
For local government units (LGUs), the benefit shall be charged against 
respective local funds. 
Any deficiency shall be charged against the 


unexpended balances of CY 2003 Internal Revenue Allotments (IRAs) to LGUs 
which are hereby authorized to be realigned for the purpose. Thereafter, the 
amount necessary shall be provided in their respective annual budgets. 
For government-owned and/or controlled corporations, the benefit shall 
be charged against their respective corporate funds. 
SECTION 4. lmplementing Rules and Regulations. - The Department 
of Budget and Management shall issue the implementing rules and regulations 
within one (1) week from the approval of this Act. 
SECTION 5. Effectivity. - This Act shall take effect upon i t s  approval. 
Approved, 
3