Republic of the Philippines
HOUSE OF REPRESENTATIVES

TWENTIETH CONGRESS
First Regular Session

House Bill No. 128

Introduced by Representative Maria Rachel J. Arenas

AN ACT INCREASING TO SIX THOUSAND PESOS (P6,000) THE MONTHLY
PERSONNEL ECONOMIC RELIEF ALLOWANCE (PERA) GRANTED TO
GOVERNMENT EMPLOYEES, APPROPRIATING FUNDS THEREFOR AND FOR
OTHER PURPOSES

EXPLANATORY NOTE

Thirty-two years ago, the Personnel Economic Relief Allowance (PERA) was
conceived to replace the two thousand pesos (P2000.00) Cost of Living Allowance (COLA)
and to shield the salaries of public sector workers from the immense adverse impact of inflation
brought about by two crippling oil price hikes in the latter part of 1990 and in anticipation of
the economic fallout from the Gulf war.

The PERA was also intended to help public sector workers cushion the increasing cost
of living until the crisis then had subsided. The financial crisis lingered and even got worse.
Thus, in order to improve the purchasing power of the peso, President Fidel Ramos signed
Administrative Order No. 53 in 1993, implementing the grant of additional compensation in
the amount of Five Hundred Pesos (500) per month to public school teachers, uniformed
personnel or the Philippine National Police and the Armed Forces of the Philippines, and
extending the benefit to the rest of the workers of the bureaucracy.

On June 17, 2009, Joint Resolution Number 4 mandated that the additional
compensation in the amount of One Thousand Five Hundred Pesos (P1,500) and the Five
Hundred Pesos (P500) PERA, be collectively referred to as PERA in the amount of Two
Thousand Pesos (P2,000).

This bill seeks to increase the monthly PERA granted to public sector employees to Six
Thousand Pesos (P6,000.) taking cognizance of the present-day economic realities to help
supplement the public employees’ salaries in the midst of rising cost of living further
aggravated by the COVID 19 pandemic. Furthermore, increasing the monthly PERA will
provide much needed relief amidst high inflation and increasing prices of commodities and
utilities.


Increasing PERA of public servants is a sincere recognition of the value of their contribution
to the production and delivery of public services to the Filipino people, without which our
democracy and sovereignty will be imperiled and our collective quest for peace, unity and

prosperity cannot be realized.

.CHEL J. ARENAS
Representative
3rd District of the Province of Pangasinan


Republic of the Philippines
HOUSE OF REPRESENTATIVES

TWENTIETH CONGRESS
First Regular Session

House Bill No. 128

Introduced by Representative Maria Rachel J. Arenas

AN ACT INCREASING TO SIX THOUSAND PESOS (P6,000) 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 present Two Thousand
Pesos (P2,000) per month to Six Thousand Pesos (P6,000) per month effective January 1, 2024.

Section 2. Coverage. — The PERA shall be granted to civilian government employees
whether employed by the national or local governments, state and local universities and colleges,
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 and
Position Classification Act of 1989,” as amended, as well as to uniformed personnel.

Section 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 and uniformly applied regardless of LGU classification. Any deficiency shall be charged
against the unexpended balances of CY 2024 appropriations of LGUS which are hereby authorized
to be realigned for the purpose herein. Thereafter, the amount shall be provided in their respective
annual local budgets.

For Government-Owned and/or Controlled Corporations, the benefits shall be charged
against their respective corporate funds.


Section 4. Implementing Rules and Regulations. — Within thirty (30) days from the
approval of this Act, the Department of Budget and Management shall issue the implementing
rules and regulations for the effective implementation of this Act.

Section 5. Repealing Clause. - All laws, decrees, orders, rules and regulations, or portions
thereof, inconsistent with this Act are hereby repealed or modified accordingly.

Section 6. Effectivity. — This Act shall take effect fifteen (15) days following its
publication in the Official Gazette or in two (2) newspaper of general circulation.

Approved.