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Executive Orders

Further Revising the Basic Annual Rates of Overseas and Living Quarters Allowances of Foreign Service Personnel

Executive Order No. 394

EXECUTIVE ORDER NO. 394 January 1, 1990

FURTHER REVISING THE BASIC ANNUAL RATES OF OVERSEAS AND LIVING QUARTERS ALLOWANCES OF FOREIGN SERVICE PERSONNEL

WHEREAS, Presidential Decree No. 1285 establishes the Foreign Service Compensation Plan for government personnel stationed abroad;

WHEREAS, Letter of Implementation No. 63 provides necessary rules and regulations to be observed in the payment of compensation for personnel of the National Government stationed abroad;

WHEREAS, Section 4.3.2 of the aforesaid Letter of Implementation No. 63 authorizes the Permanent Committee created for the purpose under EO No. 495 to recommend to the President such adjustment in the DFA Index as may be warranted by changes in the exchange rates and price levels in the affected posts of assignment not oftener than once a year;

WHEREAS, the latest adjustment of these allowances were made in 1981;

WHEREAS, in view of the continuing world-wide serious decline in the purchasing power of the United States dollar against certain currencies, government personnel stationed abroad have been experiencing financial difficulties;

WHEREAS,...

Summary of Executive Order No. 394

Revision of Overseas and Living Quarters Allowances for Foreign Service Personnel
- Amends Sections 4.1 and 8.1 of Letter of Implementation No. 63 to revise the basic annual rates of overseas and living quarters allowances for government personnel stationed abroad. (Sec. 1 and 2)
• Provides detailed tables with the revised basic annual rates for different ranks, categorized as with or without family for living quarters allowance. (Sec. 1 and 2)
• Rates range from $21,375 for Chief of Mission (overseas allowance) to $3,056 for Foreign Service Staff Employee I (living quarters allowance without family). (Sec. 1 and 2)

Funding and Implementation
- For the Department of Foreign Affairs, funds shall be taken from the lump-sum appropriation provided for the purpose and/or savings from the Calendar Year 1990 programmed appropriations. (Sec. 3)
- For other agencies with representatives abroad, the amount required shall be charged against their respective savings. (Sec. 3)
- Thereafter, necessary amounts shall be included in the budget proposal submitted to Congress. (Sec. 3)

Effective Date
- The Executive Order shall take effect on January 1, 1990. (Sec. 4)

Background and Rationale
- Presidential Decree No. 1285 establishes the Foreign Service Compensation Plan for government personnel stationed abroad. (Preamble)
- Letter of Implementation No. 63 provides rules and regulations for payment of compensation for personnel stationed abroad. (Preamble)
- Section 4.3.2 of Letter of Implementation No. 63 authorizes a Permanent Committee to recommend adjustments to the DFA Index based on changes in exchange rates and price levels, not more than once a year. (Preamble)
- The latest adjustment of these allowances was made in 1981. (Preamble)
- Due to the continuing worldwide decline in the purchasing power of the US dollar, government personnel stationed abroad have been experiencing financial difficulties. (Preamble)
- The adjustments aim to provide adequate financial means to enable government personnel stationed abroad to live in a manner befitting their representative capacity, uphold the prestige of the Philippines, and represent the country with distinction and dignity. (Preamble)
- The Permanent Committee recommended the adjustments to the annual basic rates of overseas and living quarters allowances. (Preamble)
- The Executive Order serves as an interim measure pending the results of a comprehensive study being conducted by the Department of Budget and Management on the additional compensation of government officials and employees. (Preamble)

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