Revising the Mfa Indices on Overseas and Living Quarters Allowances of Foreign Service Personnel in Bonn and Hamburg, Federal Republic of Germany

Case Overview and Summary

Revising the MFA Indices on Overseas and Living Quarters Allowances of Foreign Service Personnel in Bonn and Hamburg, Federal Republic of Germany

- Presidential Decree No. 1285 establishes the Foreign Services Compensation Plan for staff members of the National Government stationed abroad.
- Letter of Implementation No. 63 provides rules and regulations for payment of compensation for personnel stationed abroad. (Section 4.3.2)
- The Permanent Committee is authorized to recommend adjustments in the MFA index based on changes in exchange rates and price levels. (Section 4.3.2)
- Due to increase in price levels and decline in purchasing power of the US dollar, Foreign Service officers and employees face financial difficulties.
- Adequate financial means are necessary for Foreign Service personnel to efficiently represent the country abroad.
- The MFA Indices for Overseas and Living Quarters Allowances are revised as follows:
    - For Bonn and Hamburg, Germany:
        - Overseas Allowances: From 245% to 270%
        - Living Quarters Allowances: From 245% to 270%
- The adjustment amount shall be taken from the P20 million appropriated in the CY 1981 General Appropriations Act, net of reserves, for Ministry of Foreign Affairs personnel.
- For Service Attaches, the adjustment amount shall be from the programmed expenditures for CY 1981 of concerned agencies, net of reserves.
- The Order takes effect on April 1, 1981.