A Bill That Seeks to Increase Monthly PERA of Government Employees Through Automatic Inflation Adjustments

Senate Bill 643, filed on July 15, 2025, seeks to increase the Personnel Economic Relief Allowance (PERA) for government employees and introduce an automatic adjustment mechanism tied to inflation. PERA, which has remained at ₱2,000 per month, has lost much of its value due to the rising cost of living, prompting calls for an urgent update. The bill aims to ensure that PERA remains adequate and responsive to current economic conditions.

A major feature of the bill is the inflation-based adjustment, which would update PERA regularly to prevent it from becoming outdated. By ensuring that the allowance keeps pace with the prices of essential goods and services, the measure offers stronger protection for workers—especially those in lower salary grades who are most vulnerable to economic pressures. This mechanism is designed to safeguard the allowance’s real value over time.

Senate Bill 643 is part of a wider push in Congress to revisit government compensation amid economic strain. Related proposals include Senate Bill 1230, which seeks to raise PERA to ₱5,000, and House Bill 3874, which proposes an increase to ₱8,000. The presence of multiple bills underscores the shared recognition that the current PERA is no longer sufficient. However, all measures—including SB 643—remain pending in committee as of 2025.

If passed into law, Senate Bill 643 could provide meaningful economic support to millions of public sector workers by updating PERA and protecting it from further erosion. The proposed automatic inflation adjustment would help ensure that the allowance remains effective and equitable for years to come. For now, government employees continue to monitor the bill’s progress as they hope for long-awaited income relief.