WHEREAS, Presidential Decree No. 1285 establishes the system of compensation standards and policies for personnel of the Philippine Government who are stationed abroad;

WHEREAS, Executive Order No. 495 establishes the rules and regulations implemented by Letter of Implementation No. 63 to be observed in the payment of compensation for personnel of the National Government who are stationed abroad;

WHEREAS, the latest adjustment of indices on overseas and living quarters allowances was made on 27 August 1981, or almost twelve (12) years ago;

WHEREAS, Executive Order No. 394 was issued on 15 February 1990 only as an interim measure to adjust the basis annual rates of overseas and living quarters allowances;

WHEREAS, Republic Act No. 7157, otherwise known as the Philippines Foreign Service Act of 1991, was passed to strengthen the capability of the Philippine Foreign Service and provide reasonable salaries, allowances and other benefits to Foreign Service personnel;

WHEREAS, the cost of living abroad has increased due to drastic changes in foreign currency conversion rates as well as extraordinary and necessary expenses not otherwise compensated for but which are incurred by officers and employees in the foreign service;

WHEREAS, it is necessary to provide government personnel assigned abroad with a fairly adequate means within the government ™s financial capability to enable them to live in a manner befitting their representative capacities so as to ably represent the country with distinction and dignity and to uphold the prestige of the Republic;

NOW, THEREFORE, I, FIDEL V. RAMOS, President 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 to the Philippine 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. 394 for all Philippine government personnel stationed abroad shall be amended as follows:

RANK	RATE  IN US DOLLARS
	From	To
Chief of Mission	21,375	43,391
Head of Diplomatic Mission	18,988	37,731
Others, including Consul General	15,624	32,809
Career Minister
Foreign Service Officer	13,547	28,530
Class I	12,042	25,936
Class II	9,923	23,578
Class III	8,697	21,435
Class IV
Foreign Service Staff Officer	-	21,435
Class I	8,225	20,414
Class II

1.2 The overseas allowance indices provided for under Executive Order No. 723 are hereby revised and the newly opened posts are given an index as follows:

		PERCENTAGE
COUNTRY/POST		FROM	TO
Argentina	Buenos Aires	235	116
Australia	Canberra	180	106
	Melbourne	180	106
	Sydney	180	106
Austria	Vienna	240	130
Bahrain	Manama	235	113
Bangladesh	Dhaka	170	90
Belgium	Brussels	220	128
Brazil	Brasilia	160	93
Brunei	Bandar Seri Begawan		90
Canada	Montreal	160	95
	Ottawa	160	95
	Toronto	160	95
	Vancouver	160	95
	Winnipeg	160	95
Chile	Santiago	180	93
China	Beijing	150	92
C.N.M.I.	Saipan		102
Cuba	Havana	190	112
Egypt	Cairo	150	92
France	Paris	245	128
Gabon	Libreville	270	140
Germany	Berlin	245	128
	Bonn	245	128
	Hamburg	245	128
Greece	Athens	200	112
Hong Kong	Hong Kong	160	98
Hungary	Budapest		89
India	New Delhi	140	84
Indonesia	Jakarta	180	101
	Menado	120	67
Iran	Tehran	170	100
Iraq	Baghdad	190	113
Israel	Tel-Aviv	180	130
Italy	Rome	190	136
Japan	Kobe	270	162
	Tokyo	270	162
Jordan	Amman	245	113
Kenya	Nairobi	170	93
Kuwait	Kuwait	245	113
Libya	Tripoli	270	113
Malaysia	Kuala Lumpur	160	91
Mexico	Mexico City	140	93
Micronesia	Pohnpei		102
Morocco	Rabat	210	115
Myanmar	Yangon	140	82
Netherlands	The Hague	260	128
New Zealand	Wellington	160	110
Nigeria	Lagos	250	130
Oman	Muscat		113
Pakistan	Islamabad	150	89
Papua New Guinea	Port Moresby	180	102
Peru	Lima	100	93
Poland	Warsaw	150	89
Qatar	Doha		113
Romania	Bucharest	150	89
Russia	Moscow	200	130
Saudi Arabia	Jeddah	245	113
	Riyadh	245	113
Senegal	Dakar	230	131
Singapore	Singapore	160	98
South Korea	Seoul	200	108
Spain	Barcelona		128
	Madrid	190	128
Sri Lanka	Colombo	140	82
Sweden	Stockholm	240	142
Switzerland	Berne	270	142
	Geneva	270	142
Thailand	Bangkok	160	91
Turkey	Ankara		113
U.A.E.	Abu Dhabi	245	113
United Kingdom	London	240	136
U.S.A.	Agana	155	102
	Chicago	180	97
	Honolulu	175	110
	Los Angeles	160	95
	New Orleans	160	93
	New York	175	100
	San Diego		93
	San Francisco	160	93
	Seattle	160	96
	Washington, D.C.	175	96
Vatican	Holy See	190	136
Vietnam	Hanoi	140	84
Yugoslavia	Belgrade	170	92

1.3 Overseas allowance indices may be adjusted whenever the following conditions exist, and certified accordingly by the Secretary:

a) That the cost of living at post abroad is proportionately so high that an allowance is necessary to enable an officer or employee at such post to carry out his work efficiently;

b) That extraordinary and necessary expenses not otherwise compensated for are incurred by an officer or employee of the Foreign Service incident to his assignment in the post; and

c) That an allowance is necessary to assist an officer or employee of the Foreign Service who is compelled to stay in his post of assignment in spite of dangerous, notably unhealthy or excessively adverse living conditions prevailing at his post or for the convenience of the government to meet the additional expenses of maintaining an assignment.

1.4 Hardship posts as determined by the Secretary shall receive an additional five per cent (5%) increase in their overseas allowance to meet other expenses brought about by dangerous, unhealthy or excessive adverse living condition prevailing at the post.

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

SECTION 2.0 LIVING QUARTERS ALLOWANCE

RANK	RATE   IN US DOLLARS
	WITH  Family		WITHOUT Family
	From	To	From	To
Chief of Mission
Head of Diplomatic Mission	12,941	33,984	10,345	27,777
Others, including Consul General	10,482	28,318	8,621	23,146
Career Minister	7,644	24,625	6,513	20,130
Foreign Service Officer
Class I	6,786	22,389	5,734	18,296
Class II	6,422	20,352	5,404	16,636
Class III	5,538	18,503	4,602	15,124
Class IV	5,031	16,820	4,142	13,747
Foreign Service Staff Officer
Class I	-	16,820	-	13,747
Class II	4,740	15,920	3,922	13,094
Class III	4,463	14,563	3,661	12,470
Class IV	4,209	13,869	3,425	11,875
Foreign Service Staff Employee
Class I	3,926	12,579	3,056	10,771
Class II	3,926	12,579	3,056	10,771
Class III	3,926	12,579	3,056	10,771
Class I	3,926	12,579	3,056	10,771

2.2 The living quarters allowance indices provided for under Executive Order No. 723 are hereby revised and the newly opened posts are also given an index as follows:

		PERCENTAGE
COUNTRY/POST		FROM	TO
Argentina	Buenos Aires	250	85
Australia	Canberra	180	95
	Melbourne	180	100
	Sydney	180	100
Austria	Vienna	220	120
Bahrain	Manama	250	98
Bangladesh	Dhaka	110	55
Belgium	Brussels	220	120
Brazil	Brasilia	230	105
Brunei	Bandar Seri Begawan		85
Canada	Montreal	170	100
	Ottawa	170	100
	Toronto	170	102
	Vancouver	170	100
	Winnipeg		100
Chile	Santiago	150	85
China	Beijing	150	90
C.N.M.I.	Saipan		100
Cuba	Havana	160	90
Egypt	Cairo	190	90
France	Paris	230	120
Gabon	Libreville	190	120
Germany	Berlin	240	120
	Bonn	240	120
	Hamburg	240	120
Greece	Athens	220	102
Hongkong	Hongkong	270	110
Hungary	Budapest		95
India	New Delhi	130	60
Indonesia	Jakarta	170	95
	Menado	110	60
Iran	Tehran	250	90
Iraq	Baghdad	250	110
Israel	Tel-Aviv	190	120
Italy	Rome	200	120
Japan	Kobe	270	145
	Tokyo	270	145
Jordan	Amman	350	98
Kenya	Nairobi	170	78
Kuwait	Kuwait City	350	98
Libya	Tripoli	350	98
Malaysia	Kuala Lumpur	155	85
Mexico	Mexico City	200	110
Micronesia	Pohnpei		100
Morocco	Rabat	220	95
Myanmar	Yangon	100	60
Netherlands	The Hague	220	110
New Zealand	Wellington	170	112
Nigeria	Lagos	160	70
Oman	Muscat		98
Pakistan	Islamabad	130	60
Papua New Guinea	Port Moresby	160	110
Peru	Lima		78
Poland	Warsaw	160	85
Qatar	Doha		98
Romania	Bucharest	160	95
Russia	Moscow	200	95
Saudi Arabia	Jeddah	350	95
	Riyadh	350	95
Senegal	Dakar	250	120
Singapore	Singapore	200	100
South Korea	Seoul	160	120
Spain	Madrid	200	120
	Barcelona		120
Sri Lanka	Colombo	120	60
Sweden	Stockholm	220	120
Switzerland	Berne	240	120
	Geneva	240	120
Thailand	Bangkok	125	85
Turkey	Ankara		100
U.A.E.	Abu Dhabi	350	98
United Kingdom	London	240	120
U.S.A.	Agana	160	100
	Chicago	200	100
	Honolulu	190	110
	Houston	190	90
	Los Angeles	190	95
	New Orleans	185	90
	New York	200	100
	San Diego		90
	San Francisco	190	95
	Seattle	190	95
	Washington, D.C.	200	100
Vatican	Holy See	190	120
Vietnam	Hanoi	130	60
Yugoslavia	Belgrade	180	95

2.3 The granting of living quarters allowance shall be in accordance with the provisions of Section 65 of R.A. 7157 and the subsequent sections and that nobody shall suffer a reduction as a result of this adjustment; PROVIDED, That there shall be a minimum increase of $240 per annum.

2.4 For purposes of this allowance, personnel who are married and living at the post of assignment with the spouse or at least one (1) dependent child shall be considered with family, while those who are single, widow/widower or legally separated shall be without family. A widow/widower or legally separated person with at least one (1) dependent child at the post 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. Payment of the allowance shall be made strictly on the basis of actual status of the post.

2.5 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.

2.6 In case, where, because of acute housing shortage, prohibitive rental cost or other 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.

2.7 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 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 the post: 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.

2.8 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 to rent a house or apartment unit through an agent and pay the corresponding real agent ™s fee or commission upon signing of the lease contract, including renewal thereof, payment of the above may be authorized, chargeable against the account of the Department: Provided, That the head of post shall certify in the pertinent cash voucher that such payments are customary at the post and not refunded by the owner to the lessee.

2.9 In lieu of commutable living quarters allowance, payment of actual rental of quarters occupied by the head of post may be authorized, subject to availability of funds and as may be warranted by the housing situation in the post of assignment. Payment of the utilities and other related expenses shall, however, be for the personal account of the head of post concerned.

SECTION 3.0 POST ALLOWANCE

3.1 The allowance shall be granted in accordance with the provisions of Section 69 of R.A. 7157.

SECTION 4.0 REPRESENTATION ALLOWANCE

4.1 The allowance shall be granted in accordance with the provisions of Section 70 of R.A. 7157.

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

A. High Cost Posts

Barcelona, Berlin, Berne, Bonn, Brussels, Dakar, Geneva, Hamburg, Honolulu, Kobe, Lagos, Libreville, London, Madrid, Moscow, Paris, Rome, Seoul, Stockholm, Tel-Aviv, The Hague, Tokyo, Holy See and Vienna.

B. Medium Cost Posts

Abu Dhabi, Agana, Amman, Ankara, Athens, Baghdad, Buenos Aires, Canberra, Chicago, Doha, Havana, Hongkong, Jeddah, Kuwait, Manama, Melbourne, Muscat, New York, Pohnpei, Port Moresby, Rabat, Riyadh, Saipan, Santiago, Singapore, Sydney, Teheran, Tripoli.

C. Low Cost Posts

Bandar, Seri Begawan, Bangkok, Beijing, Belgrade, Brasilia, Bucharest, Budapest, Cairo, Colombo, Dhaka, Hanoi, Houston, Islamabad, Jakarta, Kuala Lumpur, Lima, Los Angeles, Menado, Mexico City, Montreal, Nairobi, New Delhi, New Orleans, Ottawa, San Diego, San Francisco, Seattle, Toronto, Vancouver, Warsaw, Washington, Winnipeg, and Yangon.

SECTION 5.0 ADJUSTMENTS OF RATES

5.1 The allowances prescribed hereto for overseas and living quarters may be adjusted once a year by the Secretary of Foreign Affairs and the Secretary of Budget and Management, upon approval of the Office of the President, to respond to sudden Foreign exchange rate fluctuations and in price levels as a stop-gap measure and pending the establishment of new and revised rates, subject to the availability of funds.

5.2 In the case of newly opened post not included in this Executive Order, the index of the closest post shall apply pending approval of an appropriate index for that particular post.

SECTION 6.0 EXEMPTION FROM TAXATION

6.1 All allowances, per diem, 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 7.0 FUNDING REQUIREMENTS

7.1 The amount needed to cover the adjustments of foreign service compensations of personnel stationed abroad shall be taken from the appropriations for allowances and from whatever savings realized by the department or agency concerned during FY 1993. Thereafter, such amounts as may be necessary shall be included in the budget proposal of the department or by the agency concerned.

SECTION 8.0 SUPPLEMENTARY RULES AND REGULATIONS

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

SECTION 9.0 SEPARABILITY CLAUSE

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

SECTION 10.0 REPEALING CLAUSE

10.1 All Orders, Letters of Implementation, rules and regulations or parts thereof which are inconsistent with the provisions of this Executive Order are hereby repealed or modified accordingly.

SECTION 11.0 EFFECTIVITY DATE

11.1 This Order shall take effect immediately.

Done in the City of Manila this 15th day of June in the year of Our Lord nineteen hundred and ninety-three.


By the President:
(Sgd.) ANTONIO T. CARPIO
Chief Presidential Legal Counsel