Adjustment of Rates of Overseas, Living Quarters Representation, and Family Allowances of Foreign Service Personnel

February 6, 2014

DFA DEPARTMENT ORDER NO. 02-14

 

SECTION 1. Legal Basis. —

Executive Order (EO) No. 156 dated 23 December 2013 entitled "Amending Executive Order No. 461 (s. 2005) and adjusting the Overseas, Living Quarters, Representation, and Family Allowances of Foreign Service Personnel" increased the rates of the aforementioned allowances to provide personnel assigned abroad with a fairly adequate means to live in a manner befitting their status as representatives of the country.

Pursuant to Section 14 of EO No. 156, the following guidelines are issued to implement the adjusted rates of Overseas, Living Quarters, Representation and Family Allowances of Foreign Service personnel.

The grant of Overseas, Living Quarters, Representation and Family Allowances are in accordance with Part A, Title XII of Republic Act No. 7157 otherwise known as "The Foreign Service Act of 1991."

TITLE I

General Principles

SECTION 2. Non-Diminution of Benefits. —

In instances where the adjusted amount of the allowances is lower than the amount currently received, the new rate and index shall be applied prospectively. The personnel concerned shall continue to receive his/her present allowance for the duration of the tour of duty at the post.

SECTION 3. Mode of Payment. —

Payment of allowances shall only be in US Dollars or in the local currency computed at the prevailing market rate.

SECTION 4. Opening of a New Post. —

In case of a newly opened post not included in this Order, the index and classification of the nearest post shall apply, pending Executive approval for an appropriate index or category for a particular post which will be generally based on the Retail Price Index set by the United Nations-International Civil Service Commission (UNCSC-RPI).

SECTION 5. Claim Certificate. —

The officer or employee shall submit a claim certificate as prescribed by the Department during initial claim, every first month of the year, or whenever there is an adjustment of rates of allowances due to promotion, change of residence, or change of family status or number of dependents. The claim certificate shall be accomplished under oath by the concerned personnel, and shall be attached to the January payroll of post and/or every disbursement voucher paying initial claim or adjustment in rates of allowances as the case may be. IDaCcS

SECTION 6. Exemption from Taxation. —

Pursuant to Section 81 of RA 7157, all allowances received by officers and employees of the Foreign Service in consideration for their service while on assignment abroad, except their basic salaries, shall be exempt from Philippine income tax.

TITLE II

Overseas Allowance

SECTION 7. Purpose of Overseas Allowance. —

Overseas Allowance (OA) shall be given to adjust the take-home pay of Foreign Service personnel for any changes in the cost of living abroad arising from the change in foreign currency conversion rates, differential cost of living between the Philippines and foreign posts, and the extraordinary and necessary expenses not otherwise compensated for, which are actually incurred by officers or employees while serving abroad.

SECTION 8. The Revised Basic Annual Rates of Overseas Allowance. —

The revised OA rates shall be in accordance with Section 1 of EO 156.

SECTION 9. The Revised Overseas Allowance Indices of Posts. —

The revised indices for OA shall be in accordance with Section 2 of EO 156.

SECTION 10. Accrual of Overseas Allowance. —

Personnel shall be entitled to OA, starting from the date of actual arrival at Post. Personnel transferred from one post to another shall be entitled to the OA with the index of their new post upon arrival thereat. While en route to their new post, including transit via Manila, they shall be entitled to the Daily Subsistence Allowance (DSA) rate of the United Nations Development Program (UNDP).

The travel from one post to another shall only be allowed for a maximum of three (3) days, except in delays resulting from events beyond the control of the personnel involved.

SECTION 11. Detailed, Relocated, or Evacuated Personnel to Another Post. —

Foreign Service personnel assigned abroad who are detailed to another post shall, for the duration of the detail, be entitled to the OA index of the post where they are temporarily assigned or detailed, unless their original post of assignment has a higher index. In such cases, the higher index shall prevail.

SECTION 12. Official Consultation or Detail in Manila Including Evacuees. —

An officer or employee, including the Head of Post who travels to Manila for official consultation or detail, shall, for the duration of his/her stay in Manila, be entitled to the full OA but not beyond thirty (30) days from date of actual arrival in Manila unless otherwise approved by the President. After the period of thirty (30) days, payment of OA shall only resume upon actual return to the post of assignment.

SECTION 13. Leave of Absence from Post. —

Overseas Allowance of those on authorized leave of absence spent outside the post of assignment shall be paid up to a maximum period of three (3) months. It shall be paid as it falls due and shall not be commutable. In no case shall OA be paid during leave of absence without pay or unauthorized leave.

SECTION 14. Adjustment during Promotions or New Appointments. —

In the case of promotions or new appointments, the OA of an appointee shall accrue on the actual assumption of duty but in no case shall it be earlier than the date of the oath of office pursuant to such promotion or appointment. CHATEa

SECTION 15. Termination of OA Due to Recall, Transfer, Resignation, Retirement and Death. —

Overseas Allowance shall cease immediately on the day the officer or employee resigns, retires, dies or is separated from the service.

Overseas Allowance of recalled or transferred personnel shall cease on the date of departure from post. While en route to Manila or to another post, they shall be entitled to the DSA rate of the UNDP. The travel to Manila or to another post shall only be allowed for a maximum of three (3) days, except in delays resulting from events beyond the control of the personnel involved.

TITLE III

Living Quarters Allowance

SECTION 16. Purpose of Living Quarters Allowance. —

The grant of LQA aims to provide Foreign Service personnel with living quarters suitable for proper representation in the host country. It is not intended to augment their take-home pay.

SECTION 17. Coverage of Living Quarters Allowance. —

Living Quarters Allowance (LQA) shall be granted to Foreign Service personnel to cover the rental of living quarters appropriate to their respective ranks, based on the criteria set by the Department.

The LQA shall also be used to pay common administrative fees, and utilities such as electricity, water, telephone and internet connection.

SECTION 18. The Revised Basic Annual Rates of Living Quarters Allowance. —

The revised basic annual rates of LQA shall be in accordance with Section 4 of EO 156.

SECTION 19. The Revised LQA Indices of Posts. —

The revised LQA indices shall be in accordance with Section 5 of EO 156.

SECTION 20. Classification of Family Status. —

For purposes of LQA, foreign service officers and employees are classified as follows:

1.With Family — personnel who are living at the post of assignment with the spouse or at least one (1) qualified dependent child who is unmarried and has not reached 18 years of age.

2.Without Family — personnel who are living alone or without qualified dependents living with them at their post of assignment.

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.

SECTION 21. Basis of Payment of Actual Family Status at Post. —

Payment of LQA shall be made strictly on the basis of actual family status at Post.

Those personnel whose dependents have temporarily left their residence at post shall retain their "with family" status provided the following conditions are complied with:

1. That for the duration of the dependent's absence, the personnel concerned shall not move to a cheaper or smaller lodging;

2. That their total absence from post in a given year shall not exceed thirty (30) calendar days; and

3. That the dependents have not established residence in the jurisdiction of another post of assignment. Employment or enrollment in a school outside of post are indicators of having changed domicile even if the duration of absence does not exceed thirty (30) calendar days. AHEDaI

SECTION 22. Payment of Key Money and Housing Agent. —

In places where the new lessee is invariably required at the outset to pay key money for goodwill as a customary business practice or required to rent a house through an agent and pay the corresponding real estate agent's fee or commission, reimbursement of the above may be authorized, subject to the following:

1. The Head of Post shall certify in the pertinent disbursement voucher that such payments are required by the host government or warranted by the real estate practice at post;

2. Payments of key money and/or agency fee are not refunded by the landlord to the lessee in lump-sum or any part thereof;

3. Reimbursement thereof shall be subject to the availability of savings from the annual LQA appropriation of the Department and shall be made not oftener than every two (2) years; and

4. Newly arrived personnel at the post of assignment shall be given priority in the reimbursement.

SECTION 23. Advance Rental/Deposit. —

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 LQA sufficient to cover the required amount may be authorized: Provided, (1) That the advance rental shall be paid directly to the landlord by the post; (2) 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; (3) That the Head of Post shall certify that the advance payment of rental is a standard practice at Post; and (4) 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.

SECTION 24. Actual Rental of Quarters of Heads of Posts. —

In lieu of commutable LQA as prescribed in this Order, actual rental of quarters occupied by the Heads of Posts may be authorized as warranted by the housing situation at the post of assignment, subject to the availability of funds. Payment of utilities and other maintenance expenses shall be charged against available funds as provided for in the allotment of post for the maintenance of the official residence.

SECTION 25. Accrual of Living Quarters Allowance. —

The LQA shall accrue on the first day of the month following the date of arrival at the post of assignment of the officer or employee. Prior to the accrual of the allowance, the personnel concerned shall be entitled to the lodging portion of the DSA based on the monthly rates published by the UNDP.

SECTION 26. Commutation of Allowance. —

The first claim of a newly-arrived personnel for LQA equivalent to three (3) months may be commuted without prior authority from the Department, subject to refund of the unearned portion if the officer or employee is reassigned to the Home Office, transferred to another post or separated from the service within the same period covered by the allowance. Thereafter, the allowance shall be commuted on a monthly basis.

SECTION 27. Adjustment of Rates Due to Promotion or New Appointment. —

In case of promotion or new appointment of personnel already at post, the new or adjusted rate of LQA shall accrue on the first day of the month following the date of actual assumption of duty but not earlier than the date of oath of office. There shall be, however, no new commutation of the three (3) months LQA. STIEHc

SECTION 28. Adjustment of Rates Due to Change in Family Status. —

In case of change in family status like arrival, departure or death of qualified dependent, the adjusted rate of LQA shall take effect on the first day of the month following date of arrival, departure or death of the dependent.

SECTION 29. Transfer from One Post to Another. —

When an officer or employee is cross-posted, the LQA in the new post shall accrue on the first day of the month following the date of arrival at post. The LQA in the old post shall cease at the end of the month of the date of departure therefrom. The DSA lodging portion shall be paid at the new post prior to the accrual of the LQA, subject to existing regulations.

SECTION 30. Detail to Another Post, Home Office or Leave of Absence from Post. —

When an officer or employee is on detail assignment to another post, on official consultation to the Home Office, or on approved leave of absence necessitating departure from his/her post of assignment, the payment of LQA shall cease at the end of the month unless it can be shown that the rented quarters has been retained and payment of rental is continued. In no case shall the payment of allowance continue beyond three (3) months if the personnel is absent from post, without prior approval from the Secretary.

SECTION 31. Reassignment to the Home Office. —

Living Quarters Allowance may be paid to recalled/reassigned personnel until the end of the month of his/her departure from post, provided, that it shall not exceed the amount actually paid by the personnel to his/her landlord. The personnel concerned shall be required to submit a copy of the lease contract, official receipts and other forms of proof of payment.

SECTION 32. Limits and Prohibitions of Living Quarters Allowance. —

LQA shall not be paid in any of the following cases:

1. If the officer or employee is occupying government-owned or rented quarters, including those located in buildings mainly leased as offices; or

2. If quarters are occupied free of charge or under arrangement with other parties allowing direct or indirect gain to the claimant or his/her family; or

3. If claimant occupies quarters owned by him/her, his/her spouse or children or on lease-purchase terms, he/she shall be entitled to LQA equivalent to fifty percent (50%) of the rental value of the property but the amount shall not exceed his/her prescribed allowance. The Head of Post, jointly with the Administrative Officer, shall certify under their official oaths the correctness of such rental value on the face of the disbursement voucher.

SECTION 33. Claim Certificates for LQA. —

The disbursement voucher for the payment of LQA shall be supported by the following certificates to be submitted upon the initial implementation of EO 156, during the initial claim of LQA or first claim for three (3) months commutable LQA, every first month of the year, or whenever there is an adjustment of rates of allowances due to promotion, change of family status, or when the officer or employee transfers to a new residence:

1. A claim certificate as prescribed by the Department to be accomplished under oath by the personnel concerned; and

2. A certificate to be accomplished under oath by the chief of mission or the principal officer on the suitability of quarters, pursuant to Section 65 of RA 7157. The certificate shall also state that the chief of mission or principal officer has personally inspected the rented quarters and that it is appropriate to the rank of the personnel and commensurate with their prescribed LQA rates.

The Secretary of Foreign Affairs shall approve the suitability criteria for the living quarters of Foreign Service personnel, based on the recommendation of the Undersecretary for Administration. AEIcSa

TITLE IV

Representation Allowance

SECTION 33. n Purpose of Representation Allowance. —

Representation Allowance may be granted to the qualified personnel stationed abroad to uphold the prestige of the Republic of the Philippines and to represent the country with distinction and dignity.

Representation Allowance shall be expended only for purposes which are of public character, beneficial to the interest of public service, and connected with the exercise and functions of the government in relation to the conduct of foreign affairs.

The Secretary of Foreign Affairs shall approve the guidelines on the reimbursement of the Representation Allowance, based on the recommendation of the Undersecretary for Administration.

SECTION 34. Officers Entitled. —

In addition to the Heads of Posts such as the Ambassador Extraordinary and Plenipotentiary and Consul General, who are provided with separate funds for representation expenses, the following officers are hereby granted monthly reimbursable representation allowance:

1. Those with the rank of Chief of Mission and Career Minister but who are not Heads of Posts;

2. Those with the rank of Foreign Service Officer; and

3. Those who are considered ranking officers as authorized by the Secretary of Foreign Affairs.

SECTION 35. Representation Expenses for Heads of Posts. —

Heads of Posts are provided with funds for their representation expenses not to exceed the amount allotted for their respective posts. They shall no longer be entitled to reimbursable representation allowance as authorized under Section 33 hereof.

SECTION 36. Charge d'Affaires, a.i. and Others Designated as Temporary Heads of Post. —

Any officer designated as Charge d'Affaires (CDA) a.i. or Officer-in-Charge (OIC), in the absence of a permanent Head of Post shall not claim reimbursable representation allowance under his/her respective rank during the period he/she performs such duties. He/She shall be entitled instead to use the funds allotted for representation expenses of the Head of Post.

Where a CDA, a.i. or an OIC is designated during momentary departure or leave of absence of the regular Head of Post, he/she shall continue to claim reimbursable representation allowance under Section 40 hereof. He/she may, however, use the Head of Post's representation allotment in the exigency of service, subject to prior approval from the Department. The request for approval shall indicate the nature of the expense.

In both cases, a CDA a.i. or OIC shall not be allowed to claim reimbursable representation allowance during the same period he/she was authorized to use the Head of Post's representation allotment.

SECTION 37. Other Officers Entitled to Representation Allowance. —

For purposes of Representation Allowance, the other officers referred to in this Order shall be those staff officers and employees duly designated by the Secretary of Foreign Affairs who perform the duties of an Administrative Officer, Legal Officer, Cultural Officer, Protocol Officer, Finance Officer, or Assistance-to-Nationals Officer.

SECTION 38. Nature of Expenses Considered. —

Expenses chargeable to representation are any of the following, subject to existing accounting and auditing rules and regulations:

1. Entertainment; acCITS

2. Gifts in accordance with the customs and traditions of locality and are considered in good taste;

3. Representation supplies;

4. Club membership fees; and

5. Other expenses which may be considered in the interest of public service and in line with the objectives of representing the government.

SECTION 39. Accrual and Termination. —

Representation Allowance accrues on the first day of the month following the date of arrival at post and ceases at the end of the same month when they depart therefrom due to reassignment to the Home Office or cross-posting.

In cases such as promotions, new appointments or new designations of officers already at post, accrual of representation allowance shall be on the first day of the month following date of promotion, appointment or new designation but not earlier than the date of actual assumption of duty. Where there are two (2) or more designations for the same claim period, entitlement to representation allowance shall apply only to the rate for the higher rank or designation but not for both or more designations.

Representation Allowance shall cease at the end of the same month following resignation, retirement, death, separation from the service or termination of the designation or function.

Heads of Posts who are compelled to incur representation expenses immediately during the month of arrival at post may be allowed to use the allotment of post for such expenses, subject to availability of funds.

SECTION 40. Revised Rates of Reimbursable Representation Allowance Per Annum. —

The revised Representation Allowance rates shall be in accordance with Section 8 of EO 156.

SECTION 41. Classification of Posts for Representation Allowance Purposes. —

The classification of Posts for Representation Allowance shall be in accordance with Section 7 of EO 156.

TITLE V

Family Allowance

SECTION 42. Purpose of Family Allowance. —

Family Allowance shall be granted to assist Foreign Service personnel living with their families at the post of assignment in meeting the incremental expenses arising from foreign assignment.

SECTION 43. Dependent Spouse. —

A dependent spouse shall mean a legal wife or husband who is unemployed and residing with the officer or employee at the post of assignment. The spouse shall be construed as "employed" whenever he/she works with compensation.

To support the payment of Family Allowance, the following shall be attached as supporting documents to the disbursement voucher for the initial claim of newly-arrived and cross-posted personnel, every first month of the year or every renewal of the claim for family allowance:

1. A certificate to be accomplished under oath by the claimant and his/her spouse that the latter is not employed; and

2. A certificate to be accomplished under oath by the chief of mission or the principal officer attesting to the non-employment status of the claimant's spouse. cICHTD

SECTION 44. Dependent Child. —

A dependent child shall mean a legitimate, illegitimate, legitimated or legally adopted child who has not reached 18 years of age, unmarried, not gainfully employed, and residing with the officer or employee at the post of assignment. A child shall be considered "gainfully employed" when he/she is working for a living and not dependent on the officer or employee for support.

Unmarried children who are mentally or physically handicapped as attested by medical certificate and incapable of supporting themselves and living with the officer or employee shall be considered dependents, regardless of age.

SECTION 45. Amount of Allowance. —

An officer or employee, who is assigned abroad and whose family resides with him/her at the post of assignment, shall be entitled to commutable Family Allowance equivalent to:

1. US$250.00 per month for the unemployed dependent spouse;

2. US$150.00 per month for each dependent child not exceeding three (3) in number.

SECTION 46. Husband and Wife Assigned at the Same Post. —

If both husband and wife are in the service and assigned at the same post, only one of them may claim the allowance for the dependent children. It follows that neither of them is entitled to the Family Allowance as a dependent spouse.

SECTION 47. Accrual of Family Allowance. —

The Family Allowance shall accrue on the actual date of arrival of dependents at the post of assignment.

SECTION 48. Termination/Adjustment of Family Allowance. —

The payment of Family Allowance shall be terminated upon any of the following circumstances:

1. Upon departure of the officer or employee for home assignment;

2. Upon attainment of 18 years of age of the dependent children;

3. Upon departure of the spouse or children from the post of assignment and absence for more than thirty (30) days with no intention to return;

4. Upon marriage of the dependent children;

5. Upon death of the spouse or children; and

6. Upon violation of any of the terms and conditions of entitlement hereof.

The Family Allowance shall be adjusted or terminated effective on the day of the change in circumstances of the dependents as indicated above, computed on a pro-rated basis of the monthly entitlement.

SECTION 49. Meritorious Cases. —

Subject to the prior approval of the Secretary, the full Family Allowance may be paid to any claimant whose dependent does not live with him/her at the post of assignment under any of the following circumstances:

1. He/she is 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 his/her children; or

2. For the convenience of the Government, he/she must live alone without any or all the members of his/her family at the post of assignment. cHAaCE

All other meritorious cases may be considered by the Secretary as the circumstances and the exigencies of the Service may warrant.

SECTION 50. Family Allowance for Dependents of Personnel Living Alone at Post. —

Family Allowance of dependents not living with the personnel at Post shall only be granted if the dependents are residing in the Philippines while the claimant is serving his/her tour of duty.

SECTION 51. Repealing Clause. —

All Orders, rules and regulations or parts thereof that are inconsistent with the provisions of this Order are hereby repealed accordingly.

SECTION 52. Effectivity. —

This Department Order shall take effect fifteen (15) days from the date of its filing with the Office of the National Administrative Register (ONAR) of the University of the Philippines (UP) Law Center.

Pursuant to Section 17 of EO 156, the allowances covered under the Executive Order shall be computed using the adjusted rates and indices starting 01 July 2013.

Pasay City, February 6, 2014.

(SGD.) ALBERT F. DEL ROSARIOSecretary of Foreign Affairs

n Note from the Publisher: Copied verbatim from the official copy. Duplication of Section 33.

ATTACHMENT

Executive Order No. 156