The rising cost of living in the Philippines continues to affect millions of households, especially government employees who rely on fixed monthly incomes. To help manage daily expenses like food, transportation and utilities, the government provides a monthly Personnel Economic Relief Allowance known as PERA.
As of 2025, PERA remains at ₱2000 per month and is given to eligible government workers across national agencies, local government units and some government owned and controlled corporations. This allowance may be small compared to rising inflation, but it continues to provide essential financial support for public servants.
What Is The PERA Allowance
The Personnel Economic Relief Allowance is a fixed monthly benefit granted to government employees to help them cope with inflation and the increasing cost of basic needs. It is separate from salary, bonuses, or other incentives.
PERA was created as a form of financial relief that recognizes the hardworking contribution of public sector employees. Although the amount is modest, it still acts as a monthly buffer that helps workers manage expenses such as transportation, food, utilities and health related needs.
Quick Summary Of The ₱2000 PERA Allowance
Key Detail |
Information |
|---|---|
Allowance Name |
Personnel Economic Relief Allowance |
Monthly Amount |
₱2000 per eligible employee |
Purpose |
To help government workers manage the rising cost of living |
Beneficiaries |
Regular, contractual and casual government employees |
Payment Schedule |
Monthly with salary |
Mode Of Payment |
Bank deposit or payroll credit |
Tax Status |
Generally tax free |
Current Rate In 2025 |
Still ₱2000 per month |
Authority |
Department of Budget and Management |
Official Website |
Purpose Of The ₱2000 PERA Allowance
The allowance was created with the following goals in mind:
- Provide financial relief for government employees due to rising prices.
- Support workers in covering daily expenses like food, utilities and medicines.
- Improve morale and reduce stress among public sector workers.
- Assist lower income employees who are more vulnerable to inflation.
The purpose is not to replace salary increases or major compensation reforms but to offer consistent and reliable support each month.
Eligibility For The ₱2000 PERA Allowance
Not all workers in the Philippines qualify for PERA. It is specifically provided to eligible government employees. The main categories include:
1. Regular Government Employees
Employees with permanent or regular appointments working full time in national or local government agencies.
2. Contractual And Casual Employees
Employees who are contractual or casual but have proper appointments and work full time may qualify, depending on their agency’s internal policies.
3. Local Government Unit Employees
LGU employees may receive PERA subject to local budget availability as approved by their local councils.
4. Employees Of Government Owned And Controlled Corporations
GOCC employees may be granted PERA based on their agency compensation policies and approval from concerned authorities.
5. Teaching And Non Teaching Personnel
Public school teachers and non teaching staff qualify as long as they meet the full time service requirements.
Final eligibility always depends on job status, approved appointments and agency specific guidelines.
How The PERA Allowance Is Given
Government employees do not need to apply for PERA. Once they meet eligibility requirements, the allowance is automatically credited to their payroll account. Key features include:
Automatic Grant
The finance or HR department includes PERA in the regular payroll of eligible workers.
Monthly Payment
The ₱2000 allowance is given every month along with the salary.
Separate Payslip Item
It appears as a separate line item in the employee payslip, clearly labeled as PERA.
No Personal Application Needed
Employees only need to maintain updated employment records and accurate bank details to avoid delays.
Prorated In Some Cases
In some agencies, PERA may be prorated based on attendance or actual days worked.
Why Many Workers Call For A PERA Increase
The PERA amount was last updated more than a decade ago. Since then, inflation has consistently increased the prices of goods and services across the country. Many employees argue that the value of ₱2000 today is significantly lower compared to its value when it was first implemented.
Employee unions and public sector groups frequently push for an increase in PERA to better reflect the current economic environment. Proposed increases have been introduced in Congress several times, but no nationwide adjustment has taken effect yet.
The government weighs increase proposals based on the national budget, economic conditions and salary standardization plans.
Benefits Of The PERA Allowance
Even with its limitations, PERA provides meaningful support for many public sector workers.
Helps Cover Daily Essentials
The extra ₱2000 can contribute to transportation, groceries, medicines and school needs.
Supports Lower Salary Grades
Lower earning employees feel the highest impact because even small financial support can reduce pressure on household expenses.
Reduces Financial Stress
The consistency of monthly assistance helps employees plan their budgets more confidently.
Improves Morale
Recognizing the financial challenges of workers helps maintain motivation and productivity.
Challenges And Limitations
Despite being useful, PERA has several challenges:
Fixed Amount
Since it does not adjust with inflation, the real value decreases over time.
Rising Living Costs
Employees living in urban areas or with additional dependents often find ₱2000 insufficient.
Payroll And Administrative Delays
Incomplete employment records, incorrect bank details or staff movement can sometimes delay PERA credits.
Budget Dependency
Any increase must go through approval and depends heavily on budget capacity and government priorities.
Latest PERA Updates For 2025
As of the latest available information:
- The monthly PERA remains at ₱2000.
- No approved increase has taken effect in 2025.
- Proposals to raise PERA continue to be discussed.
- Government agencies encourage employees to follow official updates only through verified government sources.
For the most accurate information, employees should visit the DBM website and check internal circulars issued by their respective agencies.
Frequently Asked Questions
1. Who can receive the ₱2000 PERA allowance
Eligible government employees such as regular, contractual and casual workers with proper appointments can receive PERA. It applies to employees in national government agencies, LGUs and some GOCCs.
2. Is the ₱2000 PERA allowance taxable
The allowance is generally treated as tax free, allowing employees to receive the full ₱2000 amount.
3. Has the PERA allowance increased in 2025
No. As of 2025, PERA remains at ₱2000 per month and no approved increase has been implemented.
4. Are private sector employees entitled to PERA
No. PERA is exclusively for government employees. Workers in the private sector are not covered under this allowance.
5. What should I do if my PERA allowance is missing from my payslip
Employees should coordinate with their HR or payroll office to check employment status, work hours, bank details and agency specific requirements. Agencies can correct errors and ensure the allowance is properly credited.
Conclusion
The ₱2000 PERA allowance continues to play an important role in supporting government employees in the Philippines. While it is not designed to fully cover inflation or rising household expenses, its consistent monthly assistance provides some degree of financial relief.
Many workers hope for an increase in the coming years as part of broader compensation reforms. Until then, PERA remains a vital supplement to the income of millions of public sector employees.
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