The economic landscape has been tough, particularly for the 1.8 million government employees in the Philippines.
With rising fuel prices and the lingering effects of the COVID-19 pandemic, it’s become increasingly difficult for many to make ends meet.
To address these challenges, Senator Francis Escudero has introduced Senate Bill No. 60, which aims to double the Personnel Economic Relief Allowance (PERA) from P2,000 to P4,000 per month.
This increase is designed to provide much-needed economic relief to government workers across the country.
Understanding PERA and Its Importance
The PERA was first introduced in the early 1990s as a form of financial assistance for government employees.
Initially, it was a response to the economic crises of the time, offering a subsidy to help workers cope with the rising cost of living.
Since then, PERA has become a major part of the compensation package for government employees, particularly in light of the ongoing economic difficulties by means of:
- Financial Support Enhancement: The Act significantly increases the monthly PERA from ₱2,000 to ₱4,000, providing enhanced financial support to government employees. This increase helps them cope with the rising cost of living, especially in the face of inflation and economic challenges.
- Automatic Inflation Adjustment: The Act introduces a mechanism for automatic annual adjustments to PERA, aligning it with the inflation rate. This ascertains that the allowance maintains its purchasing power over time, protecting employees from the eroding effects of inflation.
- Broad Coverage: The Act extends the increased PERA to all civilian government employees, regardless of whether they hold regular, contractual, or casual positions. It also includes military and uniformed personnel, promoting wide-ranging support across various sectors of government employment.
- Sustainability and Funding: The Act provides a clear and sustainable funding mechanism for the increased allowance. The first year of implementation is funded through savings from unreleased appropriations, while future years are secured through allocations in the annual General Appropriations Act (GAA).
- Support for Government Efficiency: By increasing PERA, the Act contributes to the broader goal of improving government efficiency and effectiveness. Better compensation helps in retaining skilled personnel and motivates them to perform their duties more effectively, which is essential for maintaining a robust public service.
- Legal and Regulatory Framework: The Act strengthens the legal framework surrounding PERA, so that it is governed by clear rules and regulations. This legal clarity supports the consistent and fair implementation of the allowance, benefiting all eligible government employees.
- Addressing Economic Challenges: In response to the ongoing economic difficulties exacerbated by factors like the COVID-19 pandemic and rising fuel prices, the Act serves as a timely intervention. It provides much-needed economic relief to government employees, helping them navigate through challenging times.
The current P2,000 allowance, however, has not kept pace with inflation and the increasing cost of basic commodities, making the proposed increase to P4,000 all the more necessary.
Legal Framework
The Personnel Economic Relief Allowance (PERA) is an important financial benefit provided to government personnel in the Philippines, aimed at supplementing their income in response to the rising cost of living. The legal framework supporting PERA is a combination of various laws, decrees, and government circulars that makes sure its proper implementation and adjustment.
Legislative Basis
The foundation of PERA lies in Republic Act (R.A.) No. 10155, also known as the General Appropriations Act of 2010. This legislation explicitly mandates the provision of PERA to government personnel stationed within the Philippines, setting the allowance at ₱2,000 per month. This act serves as the primary legal basis for the PERA, in order that government employees receive this financial support as part of their compensation package.
Eligibility and Coverage
The PERA is granted to a wide range of government employees, supporting broad coverage across various sectors. Eligible personnel include:
- Civilian Government Employees: This category encompasses those in regular, contractual, or casual positions, whether they are appointive or elective. The positions must be covered by R.A. No. 6758, also known as the Compensation and Position Classification Act of 1989.
- Military and Uniformed Personnel: PERA is also extended to those serving in the military and uniformed services, recognizing the unique challenges faced by these personnel.
However, it is important to note that government employees stationed abroad who are already receiving overseas allowances are not entitled to PERA.
Historical Development
The PERA has evolved over the years to address the changing economic landscape. It was first introduced in 1991, with an initial amount of ₱500. This allowance was subsequently increased to ₱1,000 in 1993 through Administrative Order No. 53. The most recent adjustment occurred in 2009, when PERA was combined with the Additional Compensation (ADCOM), bringing the total amount to ₱2,000. This change was formalized through Senate-HOR Joint Resolution No. 4, S. 2009.
Guidelines and Regulations
The implementation of PERA is guided by specific rules and regulations issued by the Department of Budget and Management (DBM). Budget Circular No. 2009-3, issued on August 18, 2009, outlines the key provisions for granting PERA:
- Payment Conditions: PERA is payable only when the employee’s basic pay is also paid. Employees must render full-time services, defined as eight hours per working day and twenty-two working days per month. This includes leaves of absence with pay.
- Pro-rated Payment: For employees who are on leave without pay or who are hired partway through a month, PERA is prorated based on the number of days worked. The calculation is ₱2,000 divided by 22 days, multiplied by the number of days worked.
Taxability
One of the key aspects of PERA is its tax-exempt status. The Bureau of Internal Revenue (BIR) declared PERA as non-taxable in Revenue Memorandum No. 23-2014, dated June 20, 2014. This maintains that the full amount of the allowance goes directly to the employees without any deductions.
Proposals for Increase
Given the ongoing challenges posed by inflation and the rising cost of living, several legislative proposals have been introduced to increase the PERA. Notable among these are:
- Senate Bill No. 3151: Proposed by former Senator Manny Villar, this bill sought to raise the PERA to ₱4,000 per month.
- Senate Bill Nos. 60, 1027, and 1378: Introduced by Senators Francis “Chiz” Escudero, Jinggoy Estrada, and Mark Villar, respectively, these bills also advocate for increasing the PERA amount.
- House Bill No. 7622: Filed by Congressman Anthony Golez, this bill proposed an increase to ₱4,500 per month, particularly in response to the financial hardships caused by the COVID-19 pandemic.
These proposals reflect a growing recognition of the need to adjust PERA in line with current economic realities.
Future Developments
The Department of Budget and Management (DBM) is currently conducting a study to assess the competitiveness of government salaries in comparison to the private sector. This review includes an evaluation of existing benefits like PERA, with the aim of determining potential adjustments. These efforts suggest that the legal framework governing PERA may be subject to future revisions to better align with economic conditions and policy decisions.
What Senate Bill No. 60 Proposes
Senate Bill No. 60 seeks not only to double the PERA but also to ascertain that it is automatically adjusted annually in line with inflation.
This means that the allowance would increase each year, helping to safeguard the purchasing power of government employees.
The bill covers all civilian government employees at both the local and national levels, whether they are appointive or elective, and regardless of whether they hold regular, contractual, or casual positions.
Military and uniformed personnel are also included, with the exception of those stationed abroad who already receive overseas allowances.
Eligibility
The proposed increase in the Personnel Economic Relief Allowance (PERA) under Senate Bill No. 60 applies to all civilian government employees.
This includes employees at both the national and local levels, whether they hold appointive or elective positions.
The bill covers individuals in regular, contractual, or casual roles as long as their positions fall under the Compensation and Position Classification Act of 1989 (Republic Act No. 6758).
Military and uniformed personnel are also eligible for the PERA increase, except for those stationed abroad who are already receiving overseas allowances.
Requirements
To be eligible for the increased PERA, government employees must meet the following requirements:
- Employment Status: Must be a civilian government employee or military/uniformed personnel as defined by the bill.
- Position: Must hold a position that is covered by the Compensation and Position Classification Act of 1989.
- Location: Must be stationed within the Philippines (those stationed abroad and receiving overseas allowances are excluded).
- Current Allowance: Must currently receive the P2,000 monthly PERA to qualify for the proposed increase to P4,000.
Application Process
The process for applying for the increased PERA under Senate Bill No. 60 is straightforward and largely automatic:
- Automatic Adjustment: Eligible government employees who are already receiving the PERA will automatically see the increase reflected in their monthly allowance once the bill is enacted and the necessary funds are allocated.
- No Additional Documentation Needed: Employees do not need to submit any additional documents or applications to receive the increased allowance, as it will be processed through the existing payroll system.
- Notification: Government agencies will notify their employees of the increase once it is implemented, promoting transparency and awareness.
- Appeals and Clarifications: If any employee believes they are eligible but do not receive the increase, they can appeal directly to their HR departments or the Department of Budget and Management (DBM) for clarification and resolution.
This streamlined process maintains that eligible government workers receive the enhanced financial support without unnecessary bureaucratic delays.
Funding the Increased Allowance
The first year of implementing the increased allowance is proposed to be funded through savings from unreleased appropriations and other programmed funds, estimated at around P62 billion.
In subsequent years, the necessary funds would be included in the annual General Appropriations Act (GAA).
This approach ascertains that the increase in PERA is sustainable and that government workers can rely on this financial relief in the years to come.
The Broader Impact on Government Efficiency
Senator Escudero emphasized that this proposed increase is part of his commitment to improving the welfare of government employees.
During his election campaign, he highlighted the need to create a more efficient and effective bureaucracy, and providing better compensation is a key aspect of this goal.
In addition to supporting the PERA increase, Escudero has also expressed support for the Department of Budget and Management’s (DBM) plan to streamline and reorganize the government bureaucracy.
This plan, expected to save P14.8 billion annually, involves identifying redundant positions and making sure that those affected receive proper compensation.
Escudero acknowledges that this process will be challenging, but he believes it is a necessary step toward creating a more efficient government.
Local Government Autonomy and the Devolution Principle
A significant aspect of the proposed bill is its respect for the autonomy of local government units (LGUs).
Escudero, a former governor of Sorsogon, has stressed that any efforts to streamline LGUs should be left to the provincial, city, or municipal governments themselves.
This approach is consistent with the principle of devolution enshrined in the Philippine Constitution and the Local Government Code, which grants local governments the authority to manage their own affairs.
Recent Updates
Government Workers to Receive Salary Increase in 2025
The Philippine government has allocated P70 billion in the 2025 national budget for a salary increase for government workers. The increase will be implemented in two tranches, with the first tranche covering January to December 2024 and the second tranche covering the entire year of 2025. The salary adjustments will be reflected in government workers’ pay starting January 2025. The increase will benefit various categories of state workers, including sub-professionals, professionals, and personnel in executive functions. This salary increase is part of the Marcos administration’s plan to implement a four-round salary adjustment program for government workers from 2024 to 2027. (GMA News Online)
Video: 2K-4K PERSONAL ECONOMIC RELIEF ALLOWANCE (PERA)| SB 2673
Senate Bill 2673 proposes a Personal Economic Relief Allowance (PERA) of ₱2,000 to ₱4,000 for eligible Filipinos. The bill aims to provide financial assistance to individuals and families struggling with the economic impact of the pandemic. The proposed allowance would be distributed through a one-time cash transfer program. The bill also includes provisions for the government to monitor and evaluate the effectiveness of the program. The proposed PERA program seeks to help Filipinos recover from the financial hardship caused by the pandemic.
Conclusion
The proposed doubling of the PERA allowance represents a significant step toward providing economic relief to government employees in the Philippines.
By increasing the allowance to P4,000 and adjusting it annually for inflation, the bill aims to help workers better cope with the rising cost of living.
At the same time, the proposed changes align with broader efforts to streamline the government bureaucracy, so that it is both efficient and effective.
For the millions of government employees across the country, these changes offer hope for better financial stability and a more supportive working environment in the years to come.