Pretty links for PHP pages above WP /blog directory?

  1. Go to your Admin Dashboard.
  2. Click on the Settings menu (or icon).
  3. Go to the General sub menu.
  4. The WordPress Address (URL) should match the Site Address (URL)
  5. Remove /blog form the Site Address (URL)
  6. Click the Save Changes button.

Read Giving WordPress Its Own Directory for more details.