TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
S. No
SENATE
643
' 
of I ii . 
■
25 JUL15 P2:08
Rl'CLiVtD
Introduced by SENATOR MARK A. VILLAR
AN ACT
PROVIDING FOR AN INCREASE AND AN AUTOMATIC ADJUSTMENT 
MECHANISM IN THE PERSONNEL ECONOMIC RELIEF ALLOWANCE (PERA) 
GRANTED TO GOVERNMENT EMPLOYEES
EXPLANATORY NOTE
In 1991, Personnel Economic Relief Allowance (PERA) was granted to all Filipino 
government employees to cushion the global impact of the Gulf Crisis on the price of 
commodities. PERA served as a buffer for government employees to make ends meet.
In 2009, the PERA amounting to Five hundred pesos (Php 500.00) was 
increased to Two thousand pesos (Php2,000.00) through Joint Resolution No. 4 of 
both Houses of Congress. Since then, the current PERA amount has become 
insufficient to fulfill its intended purpose due to the compounded effects of inflation.
This bill seeks to increase the financial assistance provided to government 
employees in proportion to the corresponding rise in the prices of basic goods and 
services. This will relieve government personnel from the pressure of securing their 
basic necessities, thus allowing them to focus on providing responsible and efficient 
public service.
In view of the foregoing, the swift passage of this bill is earnestly sought.
MARK A. VILLAR goc


TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
-FI
• I 0i t '•
25 JUL 15 P2 -08
SENAP, Q 
_ -, 
b 4 o
S. No._____ ^
RLCEi..
Introduced by Senator MARK A. VILLAR
AN ACT
PROVIDING FOR 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 House of Representatives of the Philippines in 
Congress assembled:
1 
Section. 1. Personnel Economic Relief Allowance (PERA). - Subject to the
2 
approval of the Department of Budget and Management (DBM), in consultation with
3 
the Department of Finance (DOF) and the National Economic and Development
4 
Authority (NEDA), the Personnel Economic Relief Allowance (PERA) granted to
5 
government employees may be subject to an annual increase equivalent to the
6 
increase in the inflation rate in the country.
7 
Upon effectivity of this Act, the current PERA amount shall be adjusted to Four
8 
thousand pesos (Php 4,000.00) per month.
9 
Sec. 2. Coverage. - PERA shall be granted to civilian government personnel,
10 
whether employed by the national or local government, appointive or elective, and
11 
whether occupying regular, contractual, or casual positions whose positions are
12 
covered by Republic Act No. 6758 or the "Compensation and Position Classification Act
13 
of 1989", as amended, as well as military and uniformed personnel: Provided, That
14 
government personnel stationed outside the Philippines receiving overseas allowances
15 
shall not be entitled under the provisions of this Act.
16 
Sec. 3. Appropriations. - For the first year of the implementation of this Act,
17 
funds necessary for the PERA of national and local government agencies shall be
18 
charged against savings, which for this purpose, includes unreleased appropriations
1


1 
and other programmed appropriations. Thereafter, the amount necessary shall be
2 
provided in the annual General Appropriations Act.
3 
Sec. 4. Implementing Rules and Regulations. - The DBM shall issue the
4 
corresponding implementing rules and regulations within fifteen (15) days from the
5 
effectivity of this Act.
6 
Sec. 5. Separability Clause. - If any provision of this Act is declared
7 
unconstitutional, the remainder thereof not otherwise affected shall remain in full force
8 
and effect.
9 
Sec. 6. Repealing Clause. - All laws, executive orders, rules and regulations, or
10 
parts thereof inconsistent with any provision hereof are hereby repealed or modified
11 
accordingly
12 
Sec. 7. Effectivity. - This Act shall take effect after fifteen (15) days from its
13 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,