₱7,000 Monthly PERA Proposed for Government Employees Under New House Bill

A new legislative proposal seeks to significantly increase the Personnel Economic Relief Allowance (PERA) for government employees from the current ₱2,000 to ₱7,000 per month. House Bill No. 6537, also known as the “Dagdag PERA Act,” was filed by Deputy Speaker and TUCP Party-list Representative Raymond Democrito C. Mendoza amid the observance of National Government Employees Week. The measure intends to institutionalize PERA as a permanent benefit and address the growing financial pressures on public sector workers due to persistent inflation and rising costs of living. 

Under the proposal, the increased PERA would apply to all civilian government personnel across national and local government agencies, state and local universities and colleges, and government-owned and -controlled corporations, regardless of employment status—regular, contractual, casual, appointive, or elective. The bill also specifies that the allowance will remain non-taxable and exempt from government-mandated deductions. Funding for the enhanced PERA would be included in the national budget for central government workers, with local funds and corporate funds covering local and GOCC employees, respectively. 

A key provision of the Dagdag PERA Act is the establishment of an annual review mechanism tied to inflation. This adjustment system, to be determined by the Department of Budget and Management (DBM), is intended to ensure that the real value of the allowance is preserved in the face of economic fluctuations. The bill further states that PERA should not be subject to reduction once set, reinforcing its role as a stable component of government employee compensation. 

Proponents of the bill argue that the current PERA rate, which has remained unchanged since 2009, has been eroded by inflation and no longer provides meaningful relief to the government workforce. By increasing and indexing the allowance to prevailing economic conditions, lawmakers like Rep. Mendoza believe the measure will help augment the incomes of public servants, improve their purchasing power, and offer enduring support against the rising cost of basic goods and services. The bill’s progression through committee deliberations and potential amendments will determine its chances for enactment into law.