₱ 2,000.00 PERA — A 15-year old allowance that needs a second look
Why It’s Time to Review and Raise the Personnel Economic Relief Allowance (PERA)
The Personnel Economic Relief Allowance (PERA) has long served as a modest but essential support for government employees facing everyday economic pressures.
But in 2025, one compelling truth stands out: PERA has not kept pace with inflation or the rising cost of living, and it’s time for a serious review and adjustment.
A Brief History of PERA
- Introduced in the 1990s, the PERA was granted to government personnel to help them tide over the economic difficulties brought about by the Gulf War. [Ref]
- Over the years, it saw incremental increases:
- ₱500 in 1991;
- ₱1,000 in 1993 by virtue of Administrative Order No. 53, s. 1993; and
- ₱2,000 in 2009, through DBM Budget Circular No. 2009-3, which remains the current rate.
That means no increase for over 15 years, despite dramatic changes in the Philippine economy.
The Most Compelling Reason for a Review: Inflation Has Eroded PERA’s Value
When PERA was last adjusted in 2009 to ₱2,000, it was meant to provide meaningful relief for everyday expenses—transportation, food, utilities. But since then:
- Cumulative inflation from 2009 to 2025 has increased.
- What ₱2,000 could buy in 2009 now requires ₱3,400 or more.
- Yet government employees still receive the same ₱2,000, with no adjustment or similar mechanism.
This means PERA has lost over half its real value, undermining its original purpose.
Why This Matters
- Government employees are frontline service providers—teachers, health workers, police, administrative staff. Their economic well-being directly affects public service delivery.
- Morale and retention suffer when compensation fails to reflect economic realities.
- Private sector allowances and COLA mechanisms have evolved, while PERA remains frozen.
- While several lawmakers have filed bills increasing the amount of PERA, none of these have reached the approval of the President.
What every government employee prays for?
Given the above reasons and the continuous and seemingly inevitable decline in the purchasing power of the Philippine peso, what every government employee earnestly pray now is to increase the amount of PERA to a reasonable level that could help ease the burden brought by inflation.
Conclusion
PERA was designed as a lifeline for government workers against economic hardship. But without review and adjustment, it risks losing its original purpose — to provide emergency financial assistance to government employees in response to economic instability.
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