WHEREAS, the devaluation of the peso will significantly increase the cost-of-living in the country as price levels rise;

WHEREAS, it is the policy of government to help augment government personnel income in times of economic difficulties;

WHEREAS, P.D. No. 1597 empowers the President to grant allowances to government employees;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by law, do hereby Direct and Order:

1. Each and every official/employee of the National Government, including state universities and colleges whether permanent, temporary, emergency, contractual or casual, shall be granted a cost-of-living allowance of P3.35 a day or P100.00 per month in the case of daily or monthly employees, respectively, in addition to that authorized under LOI No. 116.

2. Local Government units may authorize the additional cost-of-living allowance under this Executive Order to their officials and employees, subject to the limits of their financial capabilities and under such other conditions as may be determined by the joint Commission on Local Government Personnel Administration.

3. Government Owned and/or Controlled Corporations may authorize the additional cost-of-living allowance under this Executive Order to their officials and employees, subject to the existing available resources in the corporation for the purpose, and such other conditions as may be determined by the Office of Budget and Management (OBM).

4. The amount needed to implement this Order with respect to national government agencies shall be charged to (a) salary lapses and other personnel services savings of the ministry/bureau/office/agency concerned as a first priority funding source, and (b) to the lump-sum appropriation for salary increases incorporated in the budgets of national government agencies/offices. Any deficiency shall be covered by the Salary Adjustment Fund authorized in the CY 1983 General Appropriations Act.

5. Payment of the additional cost-of-living allowance herein directed shall be effective beginning the month of November, 1983.

6. The rules and regulations necessary to implement this Order shall be issued by the Minister of the Budget for the national government agencies and government-owned and controlled corporations; and by the Joint Commission on Local Government Personnel Administration for local government units.

DONE in the City of Manila, this 3rd day of November, in the year of Our Lord, nineteen hundred and eighty-three.


By the President:

(SGD.) JUAN C. TUVERA
Presidential Executive Assistant