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BUDGET CIRCULAR



No. : 2011-2
Date: September 26, 2011





TO                  : Heads of Departments, Bureaus, Offices, and Agencies of the National Government, Including State Universities and Colleges (SUCs); Government-Owned or Controlled Corporations (GOCCs); Government Financial Institutions (GFIs); Chief Executives of Local Government Units (LGUs); and All Others Concerned

SUBJECT         : Amendatory Rules on the Grant of the Personnel Economic Relief Allowance (PERA)



1.0 Background


1.1 Items (4)(e) and (4)(f)(i) of the Senate and House of Representatives Joint Resolution (JR) No. 4, s. 2009, approved on June 17, 2009, provide as follows:

(e) Rationalization of Allowances, Benefits and Incentives - The coverage, conditions for the grant, including the rates of allowances, benefits and incentives to all government employees, shall be rationalized xxxxx.

For this purpose, all existing and authorized allowances, benefits and incentives shall be categorized as Standard Allowances and Benefits, Specific-Purpose Allowances and Benefits or Incentives xxxxx.

(f) Standard Allowances and Benefits - These are allowances and benefits given to all employees across agencies at prescribed rates, guidelines, rules and regulations, which shall be limited to the following:

(i) Personnel Economic Relief Allowance - This shall be given at Two thousand pesos (?2,000.00) per month, the combined total of the current Five hundred pesos (?500.00) Personnel Economic Relief Allowance and the one thousand five hundred pesos (?1,500.00) Additional Compensation, to supplement pay due to the rising cost of living.