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 to enable them to live in a manner befitting their representative capacity so as to ably represent the country with distinction and dignity;

NOW, THEREFORE, I, GLORIA MACAPAGAL ARROYO , President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby approve the following rates, rules and regulations to be observed in the payment of compensation to personnel of the National Government in the Foreign Service.

SECTION 1.0 OVERSEAS ALLOWANCE

1.1 The basic annual rates of overseas allowance provided for under Section 1 of Executive Order No. 101 for all Philippine Government personnel stationed abroad are hereby amended as follows:

RANK	RATE IN US DOLLARS
	From	To
Chief of Mission
Head of Diplomatic Post	43,391	69,599
Others, including Consul General	37,731	60,521
Career Minister	32,809	52,626
Foreign Service Officer
Class I	28,530	45,762
Class II	25,936	41,601
Class III	23,578	37,819
Class IV	21,435	34,382
Foreign Service Staff Officer
Class I	21,435	34,382
Class II	20,414	32,744
Class III	19,442	31,185
Class IV	18,516	29,700
Foreign Service Staff Employee
Class I	16,833	27,000
Class II	16,031	25,714
Class III	15,268	24,490

1.2 The overseas allowance indices provided for under Section 1.2 and Section 5.2 of Executive Order No. 101 are hereby revised and the newly proposed posts are also given an index as follows:

COUNTRY/POST		PERCENTAGE
		From	To
Argentina	Buenos Aires	116	82
Australia	Canberra	106	90
	Melbourne	106	90
	Sydney	106	90
Austria	Vienna	130	96
Bahrain	Manama	113	91
Bangladesh	Dhaka	90	77
Belgium	Brussels	128	94
Brazil	Brasilia	93	82
Brunei	Bandar Seri Begawan	90	75
Cambodia	Phnom Penh	91	75
Canada	Montreal	95	93
	Ottawa	95	91
	Toronto	95	93
	Vancouver	95	91
	Winnipeg	95	91
Chile	Santiago	93	82
China	Beijing	92	89
	Guangzhou	92	89
	Hong Kong SAR	98	100
	Shanghai	92	89
	Xiamen	92	89
CNMI	Saipan	102	86
Cuba	Havana	112	85
Czech Republic	Prague	89	90
Egypt	Cairo	92	76
France	Paris	128	98
Gabon	Libreville	140	93
Germany	Berlin	128	98
	Bonn	128	93
	Hamburg	128	92
Greece	Athens	112	89
Hungary	Budapest	89	92
India	New Delhi	84	79
Indonesia	Jakarta	101	81
	Manado	67	70
Iran	Tehran	100	83
Iraq	Baghdad	113	84
Ireland	Dublin	-	95
Israel	Tel-Aviv	130	90
Italy	Milan	136	96
	Rome	136	96
Japan	Osaka	162	128
	Tokyo	162	128
Jordan	Amman	113	77
Kenya	Nairobi	93	78
Kuwait	Kuwait City	113	81
Laos	Vientiane	91	80
Lebanon	Beirut	130	90
Libya	Tripoli	113	82
Malaysia	Kuala Lumpur	91	75
Mexico	Mexico City	93	85
Micronesia	Pohnpei	102	86
Myanmar	Yangon	82	83
Morocco	Rabat	115	83
Netherlands	The Hague	128	93
New Zealand	Wellington	110	90
Nigeria	Abuja	130	93
Norway	Oslo	-	105
Oman	Muscat	113	81
Pakistan	Islamabad	89	80
Palau	Koror	102	86
Papua New Guinea	Port Moresby	102	88
Peru	Lima	93	78
Poland	Warsaw	89	85
Portugal	Lisbon	-	87
Qatar	Doha	113	79
Romania	Bucharest	89	81
Russia	Moscow	130	95
Saudi Arabia	Jeddah	113	86
	Riyadh	113	86
Senegal	Dakar	131	91
Singapore	Singapore	98	80
South Africa	Pretoria	105	92
South Korea	Seoul	108	107
Spain	Barcelona	128	94
	Madrid	128	94
Sri Lanka	Colombo	82	77
Sweden	Stockholm	142	99
Switzerland	Berne	142	107
	Geneva	142	107
Thailand	Bangkok	91	77
Timor-Leste	Dili	101	89
Turkey	Ankara	113	86
U.A.E.	Abu Dhabi	113	86
	Dubai	-	86
United Kingdom	London	136	100
U.S.A.	Agana	102	100
	Chicago	97	100
	Honolulu	110	100
	Houston	94	100
	Los Angeles	95	100
	New Orleans	93	100
	New York	100	100
	San Diego	93	100
	San Francisco	93	100
	Seattle	96	100
	Washington, D.C.	96	100
Vatican	Holy See	136	96
Venezuela	Caracas	93	82
Vietnam	Hanoi	84	79

1.3 Husband and wife who are assigned in the same post shall be entitled to a separate allowance with index corresponding to their respective ranks.

1.4 The granting of overseas allowance shall be in accordance with the provisions of Section 66 of R.A. 7157 and subject to the condition that nobody shell suffer a reduction as a result of these new rates. In case of reduction, the rates shall apply prospectively and the personnel concerned shall continue to receive their present overseas allowance for the duration of their tour of duty at the post.

Hardship posts as may be determined by the Secretary shall receive an additional five percent (5%) increase in their overseas allowance to meet other expenses brought about by dangerous, unhealthy or excessively adverse living conditions prevailing at post, subject to the availability of funds.

1.6 Foreign Service personnel assigned abroad, including Chiefs of Mission, who are detailed to another post shall, for the duration of the detail, be entitled to the overseas allowance index of the post where they are temporarily assigned.

SECTION 2.0 LIVING QUARTERS ALLOWANCE

The basic annul rates of living quarters allowance provided for under Section 2 of Executive Order No. 101 for all Philippine Government personnel stationed abroad are hereby amended as follows:

RANK	RATE IN US DOLLARS
	With Family		Without Family
	From	To	From	To
Chief of Mission
Head of Diplomatic Post	33,984	42,871	27,777	35,041
Others including Consul General	28,318	35,723	23,146	29,199
Career Minister	24,625	31,064	20,130	25,394
Foreign Service Officer
Class I	22,389	28,244	18,296	23,080
Class II	20,352	25,674	16,636	20,986
Class III	18,503	23,341	15,124	19,079
Class IV	16,820	21,218	13,747	17,342
Foreign Service Staff Officer
Class I	16,820	21,218	13,747	17,342
Class II	15,290	19,288	13,094	16,518
Class III	14,563	18,371	12,470	15,731
Class IV	13,869	17,496	11,875	14,980
Foreign Service Staff Employee
Class I	12,579	15,868	10,771	13,588
Class II	12,579	15,868	10,771	13,588
Class III	12,579	15,868	10,771	13,588

2.2 The living quarters allowance indices provided for under Section 2.2 and Section 5.2 of Executive Order No. 101 are hereby revised and the newly opened posts are given an index as follows:

COUNTRY/POST		PERCENTAGE
		From	To
Argentina	Buenos Aires	85	90
Australia	Canberra	95	97
	Melbourne	100	100
	Sydney	100	100
Austria	Vienna	120	130
Bahrain	Manama	98	100
Bangladesh	Dhaka	55	65
Belgium	Brussels	120	130
Brazil	Brasilia	105	110
Brunei	Bandar Seri Begawan	85	95
Cambodia	Phnom Penh	85	90
Canada	Montreal	100	100
	Ottawa	100	102
	Toronto	102	102
	Vancouver	100	102
	Winnipeg	100	100
Chile	Santiago	85	90
China	Beijing	90	95
	Guangzhou	100	100
	Hong Kong SAR	110	115
	Shanghai	90	100
	Xiamen	90	195
CNMI	Saipan	100	100
Cuba	Havana	90	100
Czech Republic	Prague	95	130
Egypt	Cairo	90	95
France	Paris	120	130
Gabon	Libreville	120	100
Germany	Berlin	120	130
	Bonn	120	130
	Hamburg	120	130
Greece	Athens	102	130
Hungary	Budapest	95	130
India	New Delhi	60	70
Indonesia	Jakarta	95	95
	Manado	60	70
Iran	Tehran	90	95
Iraq	Baghdad	110	100
Ireland	Dublin	-	130
Israel	Tel-Aviv	120	125
Italy	Milan	120	130
	Rome	120	130
Japan	Osaka	145	150
	Tokyo	145	150
Jordan	Amman	98	100
Kenya	Nairobi	78	90
Kuwait	Kuwait City	98	100
Lao Republic	Vientiane	60	70
Lebanon	Beirut	120	125
Libya	Tripoli	98	100
Malaysia	Kuala Lumpur	85	90
Mexico	Mexico City	110	115
Micronesia	Pohnpei	100	100
Morocco	Rabat	95	100
Myanmar	Yangon	60	70
Netherlands	The Hague	110	130
New Zealand	Wellington	112	115
Nigeria	Abuja	70	90
Norway	Oslo	-	130
Omar	Muscat	98	100
Pakistan	Islamabad	60	70
Palau	Koror	100	100
Papua New Guinea	Port Moresby	110	115
Peru	Lima	78	90
Poland	Warsaw	-	130
Portugal	Lisbon	-	130
Qatar	Doha	98	100
Romania	Bucharest	95	130
Russia	Moscow	95	130
Saudi Arabia	Jeddah	95	100
	Riyadh	95	100
Senegal	Dakar	120	100
Singapore	Singapore	100	100
South Africa	Pretoria	95	100
South Korea	Seoul	120	125
Spain	Barcelona	-	130
	Madrid	120	130
Sri Lanka	Colombo	60	70
Sweden	Stockholm	120	130
Switzerland	Berne	120	130
	Geneva	120	130
Thailand	Bangkok	85	95
Timor-Leste	Dili	95	100
Turkey	Ankara	100	110
U.A.E.	Abu Dhabi	98	100
	Dubai	98	100
United Kingdom	London	120	130
U.S.A.	Agana	100	100
	Chicago	100	100
	Honolulu	110	110
	Houston	90	100
	Los Angeles	95	100
	New Orleans	90	100
	New York	100	100
	San Diego	90	100
	San Francisco	95	100
	Seattle	95	100
	Washington, D.C.	100	100
Vatican	Holy See	120	130
Venezuela	Caracas	110	115
Vietnam	Hanoi	60	70

2.3 The granting of living quarters allowance shall be in accordance with the provisions of Section 65 of R.A. 7157 and subject to the condition that nobody shall suffer a reduction as a result of these new rates. In case of reduction, the rates shall apply prospectively and the personnel concerned shall continue to receive their present living quarters allowance for the duration of their tour of duty at the post.

2.4 For purposes of this allowance, personnel who are living at the post of assignment with the spouse or at least one (1) qualified dependent child who has not reached 21 years of age shall be considered with family. 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. The return flight to Manila of legal dependent children, regardless of age, shall be at government expense.

2.5 Payment of the allowance shall be made strictly on the basis of actual status at post. Those, however, whose dependents have temporarily left their residence at the post shall retain their œwith family  status: Provided, That for the duration of their absence, the personnel concerned shall not move to a cheaper or smaller lodging: Provided, further, That their absence at any one time shall not exceed beyond three (3) months: Provided, finally, That the dependents have not established residence elsewhere. Gainful employment outside of post is an indication of having changed domicile.

2.6 In the case of husband and wife who are both assigned in one (1) post, only the spouse with the higher rank shall be entitled to the allowance with index and, for purposes of family status under Section 2.4 hereof, the other spouse shall be considered as dependent.

2.7 In case, where, because of acute housing shortage, prohibitive rental cost or ether circumstances, two (2) or more Foreign Service personnel are constrained to rent one (1) apartment or housing unit jointly, the claimants shall be entitled to their respective allowances: Provided, That the Head of Post shall certify in the claim voucher that their individual allowance is insufficient to cover the rental of one (1) apartment or housing unit at the post.

2.8 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 the unit, payment of the advance living quarters allowance sufficient to cover the required amount may be authorized: Provided, That the advance rental shall be paid directly to the landlord by the post: Provided, further, 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: Provided, finally, 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.

2.9 In places where the new lessees are invariably required at the outset to pay key money for goodwill and in places where lessees are required by the host government, or by customary business practice, to rent a house or apartment unit through an agent and pay the corresponding real estate agent ™s fee or commission upon signing of the lease contract, payment of the above may be authorized, chargeable against the account of the Department concerned: Provided, That the Head of Post shall certify in the pertinent cash voucher that such payments are required by the host government or customary at the post and not refunded by the owner to the lessee: Provided, further, That any key money and/or real estate agent ™s fee or commission that may be required upon renewal of the lease contract shall likewise be chargeable against the account of the Department concerned.

2.10 In lieu of commutable living quarters allowance, payment of actual rental of quarters occupied by the Head of Post may be authorized, subject to the availability of funds and as may be warranted by the housing situation in the post of assignment. Payment of the utilities shall be in accordance with regulations as may be prescribed by the Secretary of Foreign Affairs.

SECTION 3.0 REPRESENTATION ALLOWANCE

3.1 The allowance per annum shall be granted in accordance with the provisions of Section 70 of R.A. 7157, as follows:

3.1.1 High Cost Posts

	From	To
Chief of Mission (not Head of Post)
	$4,000.00	$6,000.00
Career Minister	3,000.00	4,500.00
FSO I	2,400.00	3,600.00
FSO II	1,800.00	2,700.00
FSO III	1,200.00	1,800.00
FSO IV	1,200.00	1,800.00
FSSO I	960.00	1,440.00
Other duly authorized by the Secretary
	960.00	1,440.00

3.1.2 Medium Cost Posts

	From	To
Chief of Mission (not Head of Post)
	$2,400.00	$3,600.00
Career Minister	2,400.00	3,600.00
FSO I	1,920.00	2,880.00
FSO II	1,440.00	2,160.00
FSO III	960.00	1,440.00
FSO IV	960.00	1,440.00
FSSO I	720.00	1,080.00
Others duly authorized by the Secretary
	720.00	1,080.00

3.1.3 Low Cost Posts

	From	To
Chief of Mission (not Head of Post)
	$1,800.00	$2,700.00
Career Minister	1,800.00	2,700.00
FSO I	1,400.00	2,100.00
FSO III	1,080.00	1,620.00
FSO III	720.00	1,080.00
FSO IV	720.00	1,080.00
FSSO I	600.00	900.00
Others duly authorized by the Secretary
	600.00	900.00

3.2 Philippine Foreign Service establishments are categorized into high, medium and low-cost posts, as follows:

3.2.1 High-Cost Posts

These posts have an Overseas Allowance index in the range of 90 and above.

3.2.2 Medium-cost Posts

These posts have an Overseas Allowance index in the range of 80-89.

3.2.3 Low-cost Posts

These posts have an Overseas Allowance index in the range of 70-79.

SECTION 4.0 FAMILY ALLOWANCE

4.1 An office or employee, other than an alien or casual/contractual employee, who is assigned abroad and whose family resides with him at the post of assignment, shall be entitled to a commutable family allowance equivalent to:

a. US$ 150.00 per month for the dependent spouse
b. US$ 75.00 per month for each dependent child not exceeding three (3) in number.

4.2 For this purpose, a dependent child shall mean legitimate, illegitimate, legitimated or legally adopted child who is not over 21 years, unmarried, not gainfully employed, and living with the officer or employee at the post of assignment .

4.3 Unmarried children who are mentally or physically handicapped as attested to by 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.

4.4 Subject to the prior approval of the Department Head, full family allowance may be paid to any claimant, whose dependent does not live with him at the post of assignment under any of the following circumstances:

a. He is compelled to live alone due to dangerous, notably unhealthy or excessively adverse living conditions, or by other unavoidable circumstances like lack of appropriate, reasonable educational facilities for his children; or

b. For the convenience of the Government, he must live alone without any or all the members of his family at his post of assignment;

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

SECTION 5.0MODE OF PAYMENT

5.1 Effective upon full implementation of this Executive Order, payment of the foregoing allowances may be made either in U.S. dollars or in local currency computed at the prevailing market rate. Henceforth, payment in local currency at collection rate shall be discontinued, without exception.

SECTION 6.0 ADJUSTMENT OF RATES

6.1 The allowances prescribed hereto may be adjusted every two (2) years by the Secretary of Foreign Affairs and the Secretary of Budget and Management, upon approval of the Office of the President, to respond to substantial changes in the economic climate, subject to the availability of funds.

6.2 In the case of a newly opened post which is not included in this Executive Order, the rates/indices/classification of the nearest post in terms of economic conditions thereat shall apply, pending Executive approval of an appropriate index for that particular post.

SECTION 7.0 EXEMPTION FROM TAXATION

7.1 All allowances, per diems, benefits and the like received by officers and employees of the Foreign Service, in consideration of their service while on assignment abroad, except their basic salaries, shall be exempt from Philippine income tax.

SECTION 8.0 FUNDING REQUIREMENTS

8.1 The amount needed to cover the foregoing adjustments in the foreign service compensation of personnel stationed abroad shall be taken from the appropriations for allowances and from whatever savings realized by the Department or the agency concerned during FYs 2005 and 2006. Thereafter, such amounts as may be necessary shall be included in the budget proposal of the Department or the agency concerned.

SECTION 9.0 SUPPLEMENTARY RULES AND REGULATIONS

The supplementary rules and regulations to implement this Executive Order shall be issued by the Secretary of Foreign Affairs.

SECTION 10.0 SEPARABILITY CLAUSE

10.1 If any section or any part of this Executive Order shall be declared illegal or unconstitutional by competent authority, the remaining sections or parts thereof shall not thereby be affected.

SECTION 11.0 REPEALING CLAUSE

11.1 This Executive Order supersedes Executive Order No. 101 dated 15 June 1993. All other orders, rules and regulations or parts thereof inconsistent with the provisions of this Executive Order are hereby repealed or modified accordingly.

SECTION 12.0 EFFECTIVITY DATE

This Order shall take effect immediately.

Done in the City of Manila this 5th day of September in the year of Our Lord, two thousand and five.

(SGD.) GLORIA MACAPAGAL-ARROYO

By the President:

(SGD.) EDUARDO R. ERMITA
Executive Secretary