₱500.00 yearly increase in PERA of Government Employees under study
DBM Looks at Possible PERA Increase
The Department of Budget and Management (DBM) is evaluating a potential upward adjustment to the Personnel Economic Relief Allowance (PERA) for government workers.
This development emerged during the House plenary debates on Monday night, Sept. 16, in connection with the proposed 2025 budget.
Deputy Minority Leader France Castro, highlighted the long gap since PERA’s last notable increase. She pointed out that it took 18 years for PERA to rise significantly from its current level of P2,000 per month, after previously standing at P500.
Castro argued for another round of increases to alleviate the financial burden on government employees.
The proposed phased increase
Representative Castro’s concerns were addressed by DBM budget sponsor Rep. Stella Quimbo. She outlined a practical, stepwise plan for raising PERA:
Beginning 2026 through 2028, there would be an annual increase of P500.
By 2026, PERA would rise to P2,500 per month. By 2027, it would reach P3,000 per month. And by 2028, PERA would stand at P3,500 per month.
However, Rep. Quimbo emphasized that the proposal is still under study to determine affordability and feasibility.
The key question, as always with such adjustments, is whether the budget can accommodate the rise.
Quimbo noted the annual funding requirement would be substantial: around P11.143 billion each year.
The DBM will need to verify if the phase-in plan can be sustained within the overall fiscal framework.The ongoing discussion is part of the budget deliberations for 2025.
What’s next?
The DBM will continue to study the financial viability of the phased PERA increase.
Lawmakers will weigh the proposal against the national budget priorities and overall fiscal health. A final decision on the PERA adjustment will likely surface in subsequent budget deliberations or enactment.
Source: PERA for government workers to get annual P500 hike? That’s the plan, House told, Manila Bulletin