Iloilo prov’l board asks Congress to triple PERA to PHP 6,000

ILOILO CITY – The Sangguniang Panlalawigan of Iloilo is urging Congress to increase the monthly Personnel Economic Relief Allowance (PERA) of government employees from PHP 2,000 to PHP 6,000, citing the continuing impact of inflation and the rising cost of living.

The appeal is contained in Resolution No. 2026-428, which calls on both houses of Congress to enact legislation adjusting the allowance, which has remained unchanged since 2009.

The resolution was shared by the Association of Iloilo Provincial Government Employees on July 29, describing it as “a meaningful step in support of government workers.”

Authored by Board Member Jo Jan Paul “JP” J. Peñol and co-sponsored by several members of the provincial board, the resolution states that the PERA has remained at PHP 2,000 for 17 years despite cumulative inflation, reducing its purchasing power.

The resolution said the allowance has “significantly devalued” over the years, “effectively reducing the ‘real value’ of the allowance to a fraction of its original worth.”

It added that while periodic salary adjustments under Executive Order No. 64, series of 2024, have provided some relief, these remain subject to mandatory taxes and premium deductions.

By contrast, an increased PERA would provide government workers with additional financial support to cope with the rising costs of food, transportation, utilities, and healthcare.

The provincial board also argued that raising the allowance to PHP 6,000 “is not merely an enhancement but a necessary restoration of the allowance’s purchasing power.”

It added that the proposal is aligned with House Bill No. 4790.

The resolution likewise urged Congress to consider the fiscal capacity of local government units in implementing the proposed increase.

It also called on the Department of Budget and Management to provide funding support or National Tax Allocation adjustments to assist lower-income LGUs without breaching Personal Services spending limits.

The allowance traces its origins to Administrative Order No. 53, issued in 1993, which granted government personnel an additional PHP 500 in monthly compensation to cushion rising commodity prices. It was consolidated and raised to PHP 2,000 through Joint Resolution No. 4 in 2009, where it has stayed since.

Executive Order No. 64, which President Ferdinand Marcos Jr. signed on Aug. 2, 2024, updated the salary schedule for civilian government personnel in four tranches taking effect on Jan. 1 of 2024, 2025, 2026, and 2027. The third tranche took effect Jan. 1, 2026 under Department of Budget and Management National Budget Circular No. 601, dated Jan. 22, 2026.

That order also underscores the fiscal constraint the Iloilo resolution raises. Local government units may adopt the updated rates only with authorization from their respective sanggunian and in compliance with Personal Services limits, and lower-class provinces and cities are permitted to adopt as little as 85 percent of the national rates.

House Bill No. 4790 is one of several pending measures seeking a higher PERA. Separate bills filed in the 20th Congress propose raising the allowance to PHP 7,000 and to PHP 9,000.