SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
454 
S.No. ___ _ 
Introduced by Senator Ralph G. Recto 
Explanatory Note 
'13 
JUl -4 Am :18 
Twenty two years ago, the Personnel Economic Relief Allowance (PERA) was conceived 
to shield the salaries of 1.5 million 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 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 a1ll0unt of Five Hundred Pesos (P500.00) per month to p~blic 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 ofthe govermnent.' 
On June 17, 2009, Joint Resolution Number 4 mandated that the Additional 
Compensation in the amount of One Thousand Five Hundred Pesos (Pl,500.00) and the Five 
Hundred Pesos (P500.00) PERA, be collectively referred to as PERA. 
This bill seeks to increase the monthly PERA granted to public sector employees by 50% 
to P3,000 in order to supplement the public employees' salaries in the midst of rising cost of 
living. 
The budgetary outlay for this proposal is admittedly substantial and would require 
additional funding sources. However, govermnent's fiscal position ha5 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 recently passed Sin Tax 
reform 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 that would 
perform and deliver the govermnent's performance targets. 
I invite Presidential endorsement of the bill even as I urge ii!:' llRl~iate Senate action on it. 
\mcp 


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.~!.'mlt\? 
I. 
(~H!;f of ttF<>t\.~rt1M~, 
SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF TUE PHILIPPINES 
) 
i 
First Regular Session 
) 
'13 
,JUL -4 I A10 :1 8 
SENATE 
454 
S.No. __ _ 
Introduced by Senator Ralph G"~l'to 
"',*'JJ)j~" 
AN ACT 
INCREASING 
TO 
THREE 
THOUSAND 
PESOS 
(P3,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 House of Representatives of the Philippines in Congress 
. assembled: 
, 
SECTION 1. Increase in Monthly Allowance. -
The Personnel Economic Relief 
Allowance (PERA) granted to government employees is hereby increased from the presellt Two 
Thousand Pesos (P2,000.00) per month to Three Thousand Pesos (P3,000) per month effective 
Japuary 1, 2014. 
. SEC. 2. Coverage. - The PERA shall be granted to civilian government personnel 
wheth~r employed by the national or local governments, appointive or elective, and whether 
occupying regular, contractual, or casual positions, whose positions are covered by Republic Act 
No. 6758, otherwise known as the "Compensation ad Position Classification Act of 1989," as 
amended, as well as military and uniformed personnel. 
SEC. 3. Funding. - The funds necessary to implement the benefit herein authorized for 
national government employees 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 balance~~ of CY\ 2013 Internal 
Revenue Allotments '(IRAs) to LGUs which are hereby authorized to be realigued for the 
I 
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. 
SEC. 4. Implementing Rules and Regulations. -
The Department of Budget and 
Management shall issue shall issue the implementing rules and regulations not later than thirty 
(30) days from the approval of this Act. 
SEC. 5. Effectivity. - This Act shall take effect fifteen (IS) days after its publication either 
in the Official Gazette or in at least two (2) newspapers of general circulation. 
Approved,