Short Answer: Yes, it is true. The Department of Budget and Management (DBM) affirmed that an increase in the Personnel Economic Relief Allowance (PERA) is scheduled for government employees next year (2027).
However, while the announcement brings the first adjustment to the allowance in nearly 17 years, it has immediately drawn strong pushback from lawmakers and labor groups who argue that ₱500 is far from enough.
FULL GUIDE: Grant of Personnel Economic Relief Allowance to Government Employees for FY 2026
What Is the Proposed ₱500 PERA Hike?
The Department of Budget and Management (DBM) affirmed that an adjustment to the PERA will take place, marking the first increase after a long 17-year impasse.
Under the proposal:
- The Allocation: A total of ₱11.79 billion from the ₱55.865-billion Miscellaneous Personnel Benefits Fund (MPBF) is earmarked to support the PERA increase.
- Beneficiaries: Nearly 2 million civil servants and government personnel across the Philippines.
Why Are Lawmakers Calling ₱500 “Woefully Inadequate”?
Despite the confirmation, the ₱500 increase has met heavy criticism from employee advocates and lawmakers.
ACT Teachers Party-list Representative and Deputy Minority Leader Antonio Tinio raised strong concerns over the proposed figure, calling it “woefully inadequate” given the steep rise in the cost of basic goods and services over the last decade and a half.
“Pagkalipas ng 17 taon, ₱500 lang ang dagdag sa PERA? Habang patuloy ang pagtaas ng presyo ng bilihin, ito ay hindi sapat, hindi makatao, at isang malaking insulto sa mga guro at iba pang kawani ng gobyerno na siyang gulugod ng serbisyo publiko,” Tinio stated.
(“After 17 years, an increase of only ₱500 in the PERA? As the prices of commodities continue to rise, this is insufficient, inhumane, and a huge insult to the teachers and other government employees who serve as the backbone of public service.”)
Key Criticisms Raised:
Disparity in Budgeting:
Lawmakers point out that while civilian personnel receive a modest ₱500 hike from a portion of the MPBF, additional allocations were readily granted for Military and Uniformed Personnel (MUP) allowances—raising questions of equity across government sectors.
Inflation and Living Costs:
Given that the allowance has stayed dormant for almost 17 years, critics argue a ₱500 monthly addition barely covers current economic pressures.
ALAMIN: Bakit Nga Ba Hindi Tumataas ang PERA mula pa nung 2010?
Calls to Realign Flood Control Funds for a ₱5,000 PERA
Rather than settling for ₱500, Tinio and public sector advocates are pushing Congress to consider a budget realignment that would fund a ₱5,000 PERA—the long-standing demand of civil service organizations.
To finance this larger increase, Tinio suggested reallocating funds from underutilized or controversial sectors:
- Proposed Source: Realigning the ₱107.4-billion budget allocation for flood control projects.
- What it would cost:
- Doubling the current proposed hike would cost around ₱24 billion.
- A ₱2,000 PERA increase would require ₱48 billion.
- Realigning the flood control fund could fully cover the ₱5,000 PERA demand for all 2 million government workers.
The administration can do better for our nearly 2 million government personnel. May pera naman. Kailangan nating unahin ang kapakanan ng ating mga kawani. Itigil na ang modus ng pagbabawas sa MPBF. We demand that the P107.4 billion for flood control be realigned to fund the long-standing demand for a P5,000 PERA,” Tinio expressed.
Summary: What’s Next?
- Is the ₱500 PERA increase confirmed? Yes, the DBM affirmed that an adjustment is scheduled.
- Is it final? While scheduled by the DBM, the final specifics and figures remain central to ongoing budget debates in Congress, as lawmakers continue to push for a significantly higher realignment before the national budget is finalized.
Next to Read
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