Amending Executive Order No. 461 (s. 2005) and Adjusting the Overseas, Living Quarters, Representation, and Family Allowances of Foreign Service Personnel

December 23, 2013 EXECUTIVE ORDER NO. 156 AMENDING EXECUTIVE ORDER NO. 461 (S. 2005) AND ADJUSTING THE OVERSEAS, LIVING QUARTERS, REPRESENTATION, AND FAMILY ALLOWANCES OF FOREIGN SERVICE PERSONNEL WHEREAS, Section 63 of Republic Act (RA) No. 7157, otherwise known as the "Philippine Foreign Service Act of 1991," provided for the overseas, living quarters, representation, and family allowances, among others, of foreign service personnel; WHEREAS, Section 64 of RA 7157 further provides that the President shall approve, upon recommendation of the Secretaries of Foreign Affairs and of Budget and Management, rates, indices, maximum allowable amounts, and policies on allowances which shall be applicable to all national government employees stationed abroad; WHEREAS, Executive Order (EO) No. 461 (s. 2005) sets the present rates of overseas, living quarters, representation, and family allowances of foreign service personnel; WHEREAS, a 10% increase in the overseas, living quarters and family allowances for 31 posts was authorized in 2008; WHEREAS, significant economic changes raised the cost of living abroad; and WHEREAS, it is necessary for the government to provide, within its financial capability, personnel assigned abroad with adequate means to enable them to represent the country with distinction and dignity. HCTaAS NOW THEREFORE, I, BENIGNO S. AQUINO III, President of the Philippines, by virtue of the powers vested in me by law, do hereby approve the following rates, rules, and regulations in the payment of allowances to personnel of the National Government in the Foreign Service. SECTION 1. Base Rates of Overseas Allowance. The annual base rates of Overseas Allowance provided under EO 461 for all Philippine government personnel stationed abroad are hereby amended as follows: Rank Rate in US Dollars From To Chief of Mission I 69,599 83,519 Chief of Mission II 60,521 72,625 Career Minister 52,626 63,151 Foreign Service Officer I 45,762 54,914 Foreign Service Officer II 41,601 49,921 Foreign Service Officer III 37,819 45,383 Foreign Service Officer IV 34,382 41,258 Foreign Service Staff Officer I 34,382 41,258 Foreign Service Staff Officer II 32,744 39,293 Foreign Service Staff Officer III 31,185 37,422 Foreign Service Staff Officer IV 29,700 35,640 Foreign Service Staff Employee I 27,000 32,400 Foreign Service Staff Employee II 25,714 30,857 Foreign Service Staff Employee III 24,490 29,388 SECTION 2. Indices of Overseas Allowance. The Overseas Allowance indices provided under EO 461 are hereby revised and the newly proposed posts are also given an index as follows: Country/Post Index From To Argentina Buenos Aires 82 83 Australia Canberra 90 103 Australia Sydney 90 103 Austria Vienna 96 100 Bahrain Manama 91 90 Bangladesh Dhaka 77 85 Belgium Brussels 94 100 Brazil Brasilia 82 96 Brunei Bandar Seri Begawan 75 86 Cambodia Phnom Penh 75 83 Canada Ottawa 91 91 Canada Toronto 93 95 Canada Vancouver 91 93 Chile Santiago 82 89 China Beijing 89 96 China Chongqing - 95 China Guangzhou 89 95 China Hong Kong 100 100 China Macau - 96 China Shanghai 89 96 China Xiamen 89 91 Czech Republic Prague 90 88 Egypt Cairo 76 84 France Paris 98 102 Germany Berlin 98 94 Greece Athens 89 88 Hungary Budapest 92 88 India New Delhi 79 85 Indonesia Jakarta 81 88 Indonesia Manado 70 70 Iran Tehran 83 80 Iraq Baghdad 84 92 Israel Tel Aviv 90 91 Italy Milan 96 99 Italy Rome 96 99 Japan Osaka 128 123 Japan Tokyo 128 123 Jordan Amman 77 88 Kenya Nairobi 78 86 Kuwait Kuwait 81 88 Laos Vientiane 80 91 Lebanon Beirut 90 92 Libya Tripoli 82 81 Malaysia Kuala Lumpur 75 86 Mexico Mexico City 85 93 Myanmar Yangon 83 91 Netherlands The Hague 93 95 New Zealand Wellington 90 105 Nigeria Abuja 93 102 Norway Oslo 105 113 Oman Muscat 81 86 Pakistan Islamabad 80 85 Papua New Guinea Port Moresby 88 98 Poland Warsaw 85 86 Portugal Lisbon 87 94 Qatar Doha 79 90 Russia Moscow 95 110 Saudi Arabia Jeddah 86 85 Saudi Arabia Riyadh 86 90 Singapore Singapore 80 93 South Africa Pretoria 92 85 South Korea Seoul 107 98 Spain Madrid 94 93 Switzerland Berne 107 103 Switzerland Geneva 107 114 Syria Damascus - 89 Thailand Bangkok 77 89 Timor Leste Dili 89 94 Turkey Ankara 86 94 United Arab Emirates Abu Dhabi 86 94 United Arab Emirates Dubai 86 90 United Kingdom London 100 105 United States of America Agana 100 102 United States of America Chicago 100 98 United States of America Honolulu 100 102 United States of America Los Angeles 100 95 United States of America New York 100 100 United States of America San Francisco 100 98 United States of America Washington D.C. 100 94 Vatican Holy See 96 99 Vietnam Hanoi 79 83 SECTION 3. Rules Governing Overseas Allowance. The following are the rules governing the grant of Overseas Allowance: a. The grant of Overseas Allowance shall be in accordance with the provisions of Section 66 of RA 7157; cEaDTA b. Husband and wife who are assigned in the same post shall be entitled to separate Overseas Allowances corresponding to their respective ranks; c. In instances where the adjusted amount of Overseas Allowance is lower than the amount currently received, the new rate and index shall be applied prospectively. The personnel concerned shall continue to receive their present Overseas Allowance for the duration of the tour of duty at the post; d. Hardship posts, as may be determined by the Secretary of Foreign Affairs, shall receive an additional five percent (5%) increase in their Overseas Allowance to meet other expenses brought about by dangerous, unhealthy, or excessively adverse living conditions prevailing at post, subject to the availability of funds; and e. Foreign Service personnel assigned abroad who are detailed to another post shall, for the duration of the detail, be entitled to the Overseas Allowance index of the post where they are temporarily assigned. SECTION 4. Base Rates of Living Quarters Allowance. The annual base rates of Living Quarters Allowance provided under EO 461 for all Philippine government personnel stationed abroad are hereby amended as follows: Rate in US Dollars Rank With Family Without Family From To From To Chief of Mission I 42,871 60,134 35,041 50,112 Chief of Mission II 35,723 52,286 29,199 43,574 Career Minister 31,064 45,475 25,394 37,894 Foreign Service Officer I 28,244 39,542 23,080 32,947 Foreign Service Officer II 25,674 35,942 20,986 29,952 Foreign Service Officer III 23,341 32,674 19,079 27,230 Foreign Service Officer IV 21,218 29,707 17,342 24,754 Foreign Service Staff Officer I 21,218 29,707 17,342 24,754 Foreign Service Staff Officer II 19,288 28,282 16,518 23,573 Foreign Service Staff Officer III 18,371 26,942 15,731 22,457 Foreign Service Staff Officer IV 17,496 25,661 14,980 21,384 Foreign Service Staff Employee I 15,868 23,328 13,588 19,440 Foreign Service Staff Employee II 15,868 23,328 13,588 19,440 Foreign Service Staff Employee III 15,868 23,328 13,588 19,440 SECTION 5. Indices of Living Quarters Allowance. The Living Quarters Allowance indices provided under EO 461 are hereby revised and the newly opened posts are each given an index as follows: DcITaC Country/Post Index From To Argentina Buenos Aires 90 75 Australia Canberra 97 85 Australia Sydney 100 87 Austria Vienna 130 107 Bahrain Manama 100 82 Bangladesh Dhaka 65 61 Belgium Brussels 130 107 Brazil Brasilia 110 91 Brunei Bandar Seri Begawan 95 75 Cambodia Phnom Penh 90 73 Canada Ottawa 102 85 Canada Toronto 102 87 Canada Vancouver 102 87 Chile Santiago 90 75 China Beijing 95 85 China Chongqing - 85 China Guangzhou 100 85 China Hong Kong 115 102 China Macau - 90 China Shanghai 100 93 China Xiamen 95 75 Czech Republic Prague 130 107 Egypt Cairo 95 77 France Paris 130 107 Germany Berlin 130 107 Greece Athens 130 107 Hungary Budapest 130 107 India New Delhi 70 65 Indonesia Jakarta 95 78 Indonesia Manado 70 55 Iran Tehran 95 77 Iraq Baghdad 100 80 Israel Tel Aviv 125 98 Italy Milan 130 107 Italy Rome 130 107 Japan Osaka 150 124 Japan Tokyo 150 128 Jordan Amman 100 80 Kenya Nairobi 90 74 Kuwait Kuwait 100 82 Laos Vientiane 70 65 Lebanon Beirut 125 98 Libya Tripoli 100 79 Malaysia Kuala Lumpur 90 75 Mexico Mexico 115 90 Myanmar Yangon 70 66 Netherlands The Hague 130 107 New Zealand Wellington 115 95 Nigeria Abuja 90 82 Norway Oslo 130 107 Oman Muscat 100 80 Pakistan Islamabad 70 64 Papua New Guinea Port Moresby 115 101 Poland Warsaw 130 103 Portugal Lisbon 130 103 Qatar Doha 100 86 Russia Moscow 130 107 Saudi Arabia Jeddah 100 80 Saudi Arabia Riyadh 100 82 Singapore Singapore 100 92 South Africa Pretoria 100 79 South Korea Seoul 125 102 Spain Madrid 130 107 Switzerland Berne 130 107 Switzerland Geneva 130 109 Syria Damascus - 98 Thailand Bangkok 95 80 Timor Leste Dili 100 83 Turkey Ankara 110 91 United Arab Emirates Abu Dhabi 100 88 United Arab Emirates Dubai 100 90 United Kingdom London 130 107 United States of America Agana 100 95 United States of America Chicago 100 98 United States of America Honolulu 110 98 United States of America Los Angeles 100 95 United States of America New York 100 100 United States of America San Francisco 100 98 United States of America Washington D.C. 100 90 Vatican Holy See 130 107 Vietnam Hanoi 70 63 SECTION 6. Rules Governing Living Quarters Allowance. The following are the rules governing the grant of Living Quarters Allowance: a. The grant of Living Quarters Allowance shall be in accordance with the provisions of Section 65 of RA 7157; b. In instances where the adjusted amount of Living Quarters Allowance is lower than the amount currently received, the new rate and index shall be applied prospectively. The personnel concerned shall continue to receive their present Living Quarters Allowance for the duration of the tour of duty at the post; c. For purposes of this allowance, personnel who are living at post of assignment with the spouse or at least one (1) qualified dependent child who is not over 18 years of age shall be considered with family; d. Unmarried children who are mentally or physically handicapped as attested to by a medical certificate, incapable of supporting themselves, and living with the officer or employee abroad, shall be considered for this purpose, regardless of age, as dependents; e. Payment of the allowance shall be made strictly on the basis of actual status at the post; CacISA f. Those whose dependents have temporarily left their residence at post shall retain their "with family" status; provided, that for the duration of their absence, the personnel concerned shall not move to a cheaper or smaller lodging; provided, further, that their absence at any one time shall not exceed three (3) months; provided, finally, that the dependents have not established residence elsewhere. Gainful employment outside of post is an indication of having changed residence; g. In the case of husband and wife who are both assigned in one (1) post, only the spouse with the higher rank shall be entitled to the Living Quarters Allowance while the other spouse shall be considered as dependent for purposes of family status; h. Section 6 (g) above also applies to husband and wife who are assigned to two (2) different posts, as follows: i. Philippine Embassy Jakarta and the Philippine Mission to ASEAN Jakarta; ii. Philippine Consulate General New York and the Philippine Mission to the United Nations New York; iii. Philippine Embassy Rome and the Philippine Embassy Vatican; iv. Philippine Mission to the United Nations and Other International Organizations Geneva and the Philippine Permanent Mission to the World Trade Organization Geneva; and v. All other similar posts that may subsequently be opened. i. In cases where two (2) or more foreign service personnel are constrained to rent one (1) apartment or housing unit jointly, due to acute housing shortage, prohibitive rental cost, or other circumstances, the claimants shall be entitled to their respective allowances; provided, that the Head of Post shall certify in the claim voucher that their individual allowance is insufficient to cover the rental of one (1) apartment or housing unit at the post; HTDAac j. In posts where there is a standard practice among landlords to require advance rental or deposit equivalent to at least six (6) months to one (1) year rental of unit, advance payment of the Living Quarters Allowance sufficient to cover the required amount may be authorized; provided, that the advance rental shall be paid directly to the landlord by the post; provided, further, that, the claimant shall submit to the Home Office a copy of the pertinent contract of lease duly certified by the Head of Post which should invariably contain a diplomatic clause; provided, finally, that, in case of recall, reassignment, or for any other reason, the unexpired portion of the amount paid shall be duly refunded to the post, subject however to the condition that in case of force majeure whereby the unexpired portion is not refunded, the claimant shall not be held accountable; k. In places where the new lessees are invariably required at the outset to pay key money for goodwill and in places where lessees are required by the host government, or by customary business practice, to rent a house or apartment unit through an agent and pay the corresponding real estate agent's fee or commission upon signing of the lease contract, payment of the above may be authorized, chargeable against the account of the Department concerned; provided, that the Head of Post shall certify in the pertinent cash voucher that such payments are required by the host government or customary at the post and not refunded by the owner to the lessee; provided, further, that any key money and/or real estate agent's fee or commission that may be required upon renewal of the lease contract shall likewise be chargeable against the account of the Department concerned; SDAaTC l. In lieu of commutable Living Quarters Allowance, payment of actual rental of quarters occupied by the Head of Post may be authorized, subject to the availability of funds and as may be warranted by the housing situation in the post of assignment; m. Payment of utilities shall be in accordance with regulations as may be prescribed by the Secretary of Foreign Affairs; n. The grant of Living Quarters Allowance is intended to accord foreign service personnel proper representation in the host country and not to augment salary; o. In every case, the use of the allowance shall be in accordance with the purpose for which it has been authorized by law; and p. In all cases, the grant of commutable Living Quarters Allowance to all foreign service personnel, or its authorized equivalent such as, but not limited to, payment of actual rental of quarters and utilities, shall be subject to regulations as may be prescribed by the Secretary of Foreign Affairs, provided that the allowance shall not exceed the rates authorized herein. SECTION 7. Classification of Posts for the Representation Allowance. Philippine foreign service posts are categorized into high, medium and low cost posts, as follows: a. High Cost Posts. High Cost Posts have an Overseas Allowance index of 98 and above; b. Medium Cost Posts. Medium Cost Posts have an Overseas Allowance index of 90 to 97; and c. Low Cost Posts. Low Cost Posts have an Overseas Allowance index of 89 and below. cTCEIS SECTION 8. Rates of Representation Allowance. The Representation Allowance per annum shall be granted in accordance with the provisions of Section 70 of RA 7157, as follows: Rate in US Dollars From To a. High Cost Posts Chief of Mission (not Head of Post) 6,000 7,200 Career Minister 4,500 5,400 Foreign Service Officer I 3,600 4,320 Foreign Service Officer II 2,700 3,240 Foreign Service Officer III 1,800 2,160 Foreign Service Officer IV 1,800 2,160 Foreign Service Staff Officer I 1,440 1,728 Others duly authorized by the Secretary 1,440 1,728 b. Medium Cost Posts Chief of Mission (not Head of Post) 3,600 4,320 Career Minister 3,600 4,320 Foreign Service Officer I 2,880 3,456 Foreign Service Officer II 2,160 2,592 Foreign Service Officer III 1,440 1,728 Foreign Service Officer IV 1,440 1,728 Foreign Service Staff Officer I 1,080 1,296 Others duly authorized by the Secretary 1,080 1,296 c. Low Cost Posts Chief of Mission (not Head of Post) 2,700 3,240 Career Minister 2,700 3,240 Foreign Service Officer I 2,100 2,520 Foreign Service Officer II 1,620 1,944 Foreign Service Officer III 1,080 1,296 Foreign Service Officer IV 1,080 1,296 Foreign Service Staff Officer I 900 1,080 Others duly authorized by the Secretary 900 1,080 In instances where the adjusted amount of Representation Allowance is lower than the amount currently received, the new rate and index shall be applied prospectively. The personnel concerned shall continue to receive their present rate of Representation Allowance for the duration of the tour of duty at the post. SECTION 9. Family Allowance. The following are the rules governing the grant of Family Allowance: a. Officers or employees, except foreign, casual, or contractual employees, assigned abroad and whose families reside with them at the post of assignment, are entitled to commutable family allowance, as follows: i.US$250.00 monthly for the unemployed dependent spouse; and ii.US$150.00 monthly for each dependent child not exceeding three (3) in number. b. For this purpose, a dependent child shall mean legitimate, illegitimate, legitimated, or legally adopted child who is not over eighteen (18) years, unmarried, not gainfully employed, and living with the officer or employee at the post of assignment. cAECST c. Unmarried children, regardless of age, who are mentally or physically handicapped as attested by a medical certificate, incapable of supporting themselves, and living with the officer or employee abroad, shall be considered, for this purpose, as dependents. d. Subject to the prior approval of the Department Head concerned, full Family Allowance may be paid to claimants whose dependent does not live with them at the post of assignment under any of the following circumstances: i. They are compelled to live alone due to dangerous, notably unhealthy or excessively adverse living conditions, or by any other unavoidable circumstances like lack of appropriate/reasonable educational facilities for their children; or ii. For the convenience of the Government, they must live alone without any or all the members of his/her family at the post of assignment. All other meritorious cases may be considered by the Department Head as the circumstances and the exigencies of the Service may warrant. SECTION 10. Mode of Payment. Effective upon full implementation of this Order, payment of the foregoing allowances may be made either in US dollars or in the local currency computed at the prevailing market rate. SECTION 11. Adjustment of Rates. The allowances covered herein may be comprehensively reviewed and adjusted every two (2) years by the Secretaries of Foreign Affairs and Budget and Management, upon approval by the President, to respond to substantial changes in the economic climate, subject to availability of funds. CDTSEI In dire economic situations, such as sudden foreign exchange fluctuations and a surge in inflation rates, stop-gap adjustments may be recommended by the Secretaries of Foreign Affairs and Budget and Management, on a per post basis, for approval of the President, subject to the availability of funds. In case of a newly opened post which is not included in this Order, the rates/indices/classification of the nearest post in terms of economic conditions thereat shall apply, pending Executive approval of an appropriate index for the post. SECTION 12. Tax Exemption. All allowances, per diems, benefits received by officers and employees in consideration of their services while on assignment abroad, except their basic salaries, shall be exempt from Philippine income tax. SECTION 13. Funding. For the initial year of implementation, the amount needed to cover the foregoing adjustments in the allowances of foreign service personnel stationed abroad shall be taken from agency savings and/or the Miscellaneous Personnel Benefits Fund (MPBF). Thereafter, such amounts as may be necessary shall be incorporated in the budget of the Department or the agency concerned. SECTION 14. Implementing Rules and Regulations (IRR). The Secretary of Foreign Affairs shall issue the IRR for the implementation of this Order. SECTION 15. Repeal. This Order supersedes EO 461. All other issuances, orders, rules and regulations, or parts thereof, which are inconsistent with this Order are hereby repealed, amended or modified accordingly. SECTION 16. Separability Clause. If any provision of this Order is declared invalid or unconstitutional, the other provisions not affected thereby shall remain valid and subsisting. EHCaDS SECTION 17. Effectivity. This Order shall take effect upon publication in a newspaper of general circulation. Starting 01 July 2013, the allowances covered under this Order shall be computed using the rates prescribed herein. DONE in the City of Manila, this 23rd day of December, in the year of Our Lord, Two Thousand and Thirteen.