Senate Pushes for ₱4,000 PERA with Automatic Inflation Adjustment: A Lifeline for Government Workers

As the cost of living continues to surge in the Philippines, a bipartisan initiative in the Senate seeks to make meaningful change for millions of public servants. Among the legislative measures under consideration in the 20th Congress is a bill that would raise the monthly Personnel Economic Relief Allowance (PERA) from its long-unchanged rate of ₱2,000 to ₱4,000, with an added provision to automatically adjust the allowance in line with inflation.

Why This Matters Now

Introduced on July 15, 2025 by Senator Mark A. Villar, Senate Bill No. 643 — “An Act Providing an Increase and an Automatic Adjustment Mechanism in the Personnel Economic Relief Allowance (PERA) Granted to Government Employees” — aims to address a persistent gap between compensation and real-world cost pressures.

PERA was established to help government workers cope with rising prices of basic goods and services. However, its fixed amount has remained at ₱2,000 per month since 2009, despite years of inflation that have significantly eroded its purchasing power. The result is that many government employees — from teachers to health workers, clerks, and support staff — face increasing difficulty in stretching their incomes to cover necessities.

The Core Proposal: Realigning PERA with Economic Reality

Under this bill, the PERA would be adjusted immediately to ₱4,000 per month, effectively doubling the current allowance. More importantly, it would thereafter be subject to an automatic annual adjustment tied to inflation, based on data from relevant government economic agencies and subject to consultation with the Department of Budget and Management (DBM).

This mechanism is intended to prevent the allowance from becoming outdated once again, ensuring that PERA remains responsive to future price changes without requiring a new law each time inflation rises. The automatic adjustment proposal reflects concerns that the current static rate no longer fulfills the allowance’s intended purpose of mitigating economic hardship.

Impact on Government Workers

Public sector employees have seen their purchasing power shrink over the years. Prices of fuel, groceries, utilities, medical services, transportation, and school supplies have risen markedly, placing additional strain on family budgets. For many workers in lower salary grades, a ₱2,000 monthly PERA barely offsets increases in basic expenses, much less rising healthcare or education costs.

Doubling PERA to ₱4,000 — with automatic adjustment — is therefore aimed at restoring some of the lost value of this relief allowance and giving government employees more breathing room in managing day-to-day financial obligations.