TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
25 JUL-7 P2:01
SENATE
S. No.
233
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
EXPLANATORY NOTE
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 Middie 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. This 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.
UDERO
FRANCIS G.


TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
25 JUL -7 P2 ;00
SENATE
S. No.
233
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 House of Representatives of the Philippines in 
Congress assemble
1 
Section 1. Personnel Economic Relief Allowance. - The Personnel Economic
2 
Relief Allowance (PERA) being granted to employees of the government shall be
3 
subject to an automatic yearly adjustment equivalent to any increase of the annual
4 
inflation rate in the country.
5 
Concomitantly, upon the effectivity of this Act, the current PERA in the amount
6 
of Two Thousand Pesos (P2,000) per month is hereby adjusted to Four Thousand
7 
(P4,000) per month.
8 
Sec. 2. Coverage. - The PERA shall be granted to civilian government personnel
9 
whether employed by the national or local governments, appointive or elective, and
10 
whether occupying regular, contractual, or casual positions, whose positions are
11 
covered by Republic Act No. 6758, otherwise known as the "Compensation and
12 
Position Classification Act of 1989," as amended, as well as military and uniformed
13 
personnel: Provided, That government personnel stationed abroad already receiving
14 
overseas allowances shall not be entitled to the provisions of this Act.


1 
Sec. 3. Appropriations. - For the first year of the implementation of this Act,
2 
funds necessary for the PERA of national and local government agencies shail be
3 
charged against savings, which for this purpose includes unreleased appropriations
4 
and other programmed appropriations. Thereafter, the amount necessary shall be
5 
provided in the annual General Appropriations Act.
6 
Sec. 4. Impiementing Ruies and Regulations. - The Department of Budget and
7 
Management shall issue the corresponding impiementing rules and regulations within
8 
fifteen days from the effectivity of this Act.
9 
Sec. 5. Repealing Clause. - All laws, decrees, resolutions, orders, or parts
10 
thereof inconsistent with this Act are hereby repealed, amended or modified
11 
accordingiy.
12 
Sec. 6. Effectivity. - This Act shall take effect fifteen (15) days after the
13 
publication in the Official Gazette or in one newspaper off general circulation.
Approved,