Public sector unions slam P500 allowance hike as inadequate

MANILA — Public sector labor groups have criticized the Department of Budget and Management's plan to raise the Personnel Economic Relief Allowance by P500 monthly for government employees next year, arguing the increase fails to meet workers' needs.

The Confederation of Independent Unions in the Public Sector said in a statement that the proposed adjustment to the allowance—commonly known as Pera—does not adequately address the economic challenges facing civil service employees. The labor organization contended that the allowance, which provides supplementary income to government workers, has lagged behind inflation and rising living costs.

The dispute highlights ongoing tensions between public sector unions and budget authorities over compensation for the Philippines' estimated two million government employees. Labor advocates have repeatedly called for more substantial increases to allowances and wages, citing the erosion of purchasing power and the growing cost of living across the country.

The DBM has not yet issued a detailed response to the unions' objections. The proposed P500 increase is expected to be finalized as part of the 2027 national budget deliberations in Congress.