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, in order that government personnel stationed abroad be provided with adequate financial means within the financial capability of the government to enable them to live in a manner befitting their representative capacity, and to uphold the prestige of the Republic of the Philippines and otherwise to represent the country with distinction and dignity, the Permanent Committee recommended the adjustments of the annual basic rates of overseas and living quarters allowances provided under Letter of Implementation No. 63;

NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, do hereby order as an interim measure, pending the results of the comprehensive study being conducted by the Department of Budget and Management on the additional compensation of government officials and employees, the fol1owing:

Section 1. Section 4.1 of Letter of Implementation No. 63 is hereby amended to read as follows:

"4.1 The following shall be the basic annual rates of v6verseas allowance for government personnel stationed abroad:

Rank	Rates
Chief of Mission Head of Diplomatic Mission	$ 21,375
Others including those assigned as Consul-General	8,988
Career Minister (Counsel or)	15,624
Foreign Service Officer, Class I	13,547
Foreign Service Officer, Class II	12,042
Foreign Service Officer, Class III	9,923
Foreign Service Officer, Class IV	8,697
Foreign Service Staff Officer III	8,225
Foreign Service Staff Officer II	7,461
Foreign Service Staff Officer I	6,580
Foreign Service Staff Employee III	6,113
Foreign Service Staff Employee II	5,310
Foreign Service Staff Employee I	4,631

Section 2. Section 8.1 of Letter of Implementation No. 63 is hereby amended to read as follows:

"8.1 The following shall be the basic annual rates of living quarters allowance for government personnel stationed abroad:

Rank	Rates
	With Family	Without Family
Chief of Mission Head of Diplomatic Mission	$12,491	$ 10,345
Others including those assigned as Consul-General	10,482	8,621
Career Minister (Counsellor)	7,644	6,513
Foreign Service Officer, Class I	6,786	5,734
Foreign Service Officer, Class II	6,422	5,404
Foreign Service Officer, Class III	5,538	4,602
Foreign Service Officer, Class IV	5,031	4,142
Foreign Service Staff Officer III	4,746	3,922
Foreign Service Staff Officer II	4,463	3,661
Foreign Service Staff Officer I	4,209	3,425
Foreign Service Staff Employee III	3,926	3,056
Foreign Service Staff Employee II	3,926	3,056
Foreign Service Staff Employee I	3,926	3,056

Section 3. Funds needed to implement this Order with respect to the Department of Foreign Affairs shall be taken from the lump-sum appropriation provided for the purpose and/or savings from the Calendar Year 1990 programmed appropriations of the Department of Foreign Affairs. For those of other agencies with representatives abroad, the amount required shall be charged against their respective abroad, the amount required shall be charged against their respective savings. Thereafter, such amounts as may be necessary shall be included in the budget proposal submitted to the Congress.

Section 4. This Executive Order shall take effect January 1, 1990.

Done in the City of Manila, this 15th day of February in the year of our Lord, nineteen hundred and ninety.


By the President:

(Sgd.) CATALINO MACARAIG, JR.
Executive Secretary