MALACAÑAN PALACE
MANILABY THE PRESIDENT OF THE PHILIPPINES
EXECUTIVE ORDER No. 461
REVISING FURTHER THE COMPENSATION PLAN OF THE FOREIGN SERVICE OF THE PHILIPPINES
WHEREAS, Republic Act No. 7157, otherwise known as the Philippine Foreign Service Act of 1991, provides that the President shall approve, upon recommendation of the Secretary of Foreign Affairs and the Secretary of Budget and Management, the rates, indices and maximum allowable amounts and policies on allowances which shall be applicable to all national government employees stationed abroad pursuant to the Foreign Service Compensation Decree;
WHEREAS, Executive Order No. 101, dated 15 June 1993, provides for the revision of the Compensation Plan of the Foreign Service of the Philippines;
WHEREAS, no adjustment has ever been made since the issuance of said Executive Order;
WHEREAS, since that time, there have been significant changes in the economic scenario which have resulted in a general increase in the cost of living abroad;
WHEREAS, it is necessary for government to provide, within its financial capability, personnel assigned abroad with a fairly adequate means...
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Executive Orders
Revising Further The Compensation Plan Of The Foreign Service Of The Philippines
Executive Order No. 461
Summary of Executive Order No. 461 - Revising the Compensation Plan of the Foreign Service of the Philippines
Overseas Allowance:
- Increases the basic annual rates of overseas allowance for all Philippine government personnel stationed abroad, with specific rates provided for different ranks (Section 1.1).
- Revises the overseas allowance indices for various countries and posts (Section 1.2).
- Husband and wife assigned to the same post shall receive separate allowances based on their respective ranks (Section 1.3).
- No reduction in allowance for existing personnel; new rates apply prospectively (Section 1.4).
- Hardship posts receive an additional 5% increase in overseas allowance (Section 1.5).
- Personnel detailed to another post receive the allowance index of the temporary post (Section 1.6).
Living Quarters Allowance:
- Increases the basic annual rates of living quarters allowance for all Philippine government personnel stationed abroad, with separate rates for those with and without family (Section 2.1).
- Revises the living quarters allowance indices for various countries and posts (Section 2.2).
- No reduction in allowance for existing personnel; new rates apply prospectively (Section 2.3).
- Defines "with family" status based on the presence of a spouse or dependent child (Section 2.4).
- Provisions for temporary absence of dependents and retaining "with family" status (Section 2.5).
- For married couples assigned to the same post, only the spouse with the higher rank receives the allowance (Section 2.6).
- Provisions for shared housing arrangements due to housing shortages or costs (Section 2.7).
- Allows payment of advance rental, key money, and real estate agent fees in certain situations (Sections 2.8 and 2.9).
- Allows payment of actual rental for the Head of Post's quarters, subject to availability of funds (Section 2.10).
Representation Allowance:
- Provides annual representation allowance rates for different ranks and post categories (high, medium, and low cost) (Section 3.1).
- Categorizes posts into high, medium, and low cost based on their overseas allowance index (Section 3.2).
Family Allowance:
- Provides a monthly family allowance for the dependent spouse ($150) and up to three dependent children ($75 each) (Section 4.1).
- Defines dependent child as unmarried, not gainfully employed, and under 21 years old (Section 4.2).
- Includes provisions for mentally or physically handicapped dependent children (Section 4.3).
- Allows payment of full family allowance in certain circumstances where the dependents do not live with the personnel at the post (Section 4.4).
Mode of Payment:
- Allows payment of allowances in U.S. dollars or local currency at the prevailing market rate (Section 5.1).
Adjustment of Rates:
- Allows adjustment of allowance rates every two years to respond to economic changes, subject to availability of funds (Section 6.1).
- Provides for applying the rates of the nearest post for newly opened posts not included in the order (Section 6.2).
Tax Exemption:
- All allowances, per diems, and benefits received by Foreign Service personnel while on assignment abroad, except basic salaries, are exempt from Philippine income tax (Section 7.1).
Funding Requirements:
- Funding for the adjustments to be taken from appropriations for allowances and savings realized by the Department or agency concerned in FYs 2005 and 2006, and included in subsequent budget proposals (Section 8.1).
Supplementary Rules and Regulations:
- The Secretary of Foreign Affairs shall issue supplementary rules and regulations to implement the Executive Order (Section 9.1).
Separability Clause and Repealing Clause:
- Includes a separability clause (Section 10.1) and repeals Executive Order No. 101 and other inconsistent orders, rules, and regulations (Section 11.1).
Effectivity Date:
- The Executive Order takes effect immediately (Section 12.1).
Overseas Allowance:
- Increases the basic annual rates of overseas allowance for all Philippine government personnel stationed abroad, with specific rates provided for different ranks (Section 1.1).
- Revises the overseas allowance indices for various countries and posts (Section 1.2).
- Husband and wife assigned to the same post shall receive separate allowances based on their respective ranks (Section 1.3).
- No reduction in allowance for existing personnel; new rates apply prospectively (Section 1.4).
- Hardship posts receive an additional 5% increase in overseas allowance (Section 1.5).
- Personnel detailed to another post receive the allowance index of the temporary post (Section 1.6).
Living Quarters Allowance:
- Increases the basic annual rates of living quarters allowance for all Philippine government personnel stationed abroad, with separate rates for those with and without family (Section 2.1).
- Revises the living quarters allowance indices for various countries and posts (Section 2.2).
- No reduction in allowance for existing personnel; new rates apply prospectively (Section 2.3).
- Defines "with family" status based on the presence of a spouse or dependent child (Section 2.4).
- Provisions for temporary absence of dependents and retaining "with family" status (Section 2.5).
- For married couples assigned to the same post, only the spouse with the higher rank receives the allowance (Section 2.6).
- Provisions for shared housing arrangements due to housing shortages or costs (Section 2.7).
- Allows payment of advance rental, key money, and real estate agent fees in certain situations (Sections 2.8 and 2.9).
- Allows payment of actual rental for the Head of Post's quarters, subject to availability of funds (Section 2.10).
Representation Allowance:
- Provides annual representation allowance rates for different ranks and post categories (high, medium, and low cost) (Section 3.1).
- Categorizes posts into high, medium, and low cost based on their overseas allowance index (Section 3.2).
Family Allowance:
- Provides a monthly family allowance for the dependent spouse ($150) and up to three dependent children ($75 each) (Section 4.1).
- Defines dependent child as unmarried, not gainfully employed, and under 21 years old (Section 4.2).
- Includes provisions for mentally or physically handicapped dependent children (Section 4.3).
- Allows payment of full family allowance in certain circumstances where the dependents do not live with the personnel at the post (Section 4.4).
Mode of Payment:
- Allows payment of allowances in U.S. dollars or local currency at the prevailing market rate (Section 5.1).
Adjustment of Rates:
- Allows adjustment of allowance rates every two years to respond to economic changes, subject to availability of funds (Section 6.1).
- Provides for applying the rates of the nearest post for newly opened posts not included in the order (Section 6.2).
Tax Exemption:
- All allowances, per diems, and benefits received by Foreign Service personnel while on assignment abroad, except basic salaries, are exempt from Philippine income tax (Section 7.1).
Funding Requirements:
- Funding for the adjustments to be taken from appropriations for allowances and savings realized by the Department or agency concerned in FYs 2005 and 2006, and included in subsequent budget proposals (Section 8.1).
Supplementary Rules and Regulations:
- The Secretary of Foreign Affairs shall issue supplementary rules and regulations to implement the Executive Order (Section 9.1).
Separability Clause and Repealing Clause:
- Includes a separability clause (Section 10.1) and repeals Executive Order No. 101 and other inconsistent orders, rules, and regulations (Section 11.1).
Effectivity Date:
- The Executive Order takes effect immediately (Section 12.1).