I" ,, '

MALACANANGManila

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 461

REVISING FURTHER THE COMPENSATION PLAN OF THE FOREIGNSERVICE OF THE PHILIPPINES

WHEREAS, Republic Act No. 7157, otherwise known as the PhitippineForeign Service Act of 1991, provides that the President shall approve, uponrecommendation of the Secretary of Foreign Affairs and the Secretary of Budgetand Management, the rates, indices and maximum allowable amol,ints andpolicies on allowances which shall be applicable to all national governmentemployees stationed abroad pursuant to the Foreign Service Compensation

Decree;

WHEREAS, Executive Order No. 101, dated 15 June 1993, provides forthe revision of the Compensation Plan of the Foreign Service of the Philippines;

WHEREAS, no adjustment has ever been made since the issuance of saidExecutive Order;

WHEREAS, since that time, there have been significant changes in theeconomic scenario which have resulted in a general increase in the costof livingabroad;

WHEREAS, it is necessary for government to provide, within its financialcapability, personnel assigned abroad with a fairly adequate means to enablethem to live in a manner befitting their representative capacity so as to ablyrepresent the country with distinction and dignity;

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

SECTION 1.0 OVERSEAS ALLOWANCE

1.1

The basic annual rates of overseas allowance provided for underSection 1 of Executive Order No. 101 for all Philippine Governmentpersonnel stationed abroad are hereby amended as follows:

RATEIN US DOLLARSRANK

!.Q.Emm

69,59960,521

43,39137,731

Chief of MissionHead of Diplomatic PostOthers, including Consul General

52,62632,809Career Minister

Foreign Service OfficerClass IClass IIClass IIIClass IV

28,53025,93623,578

21,435

45,76241,60137,81934,382

Foreign Service Staff OfficerClass IClass IIClass IIIClass IV

21,43520,41419,44218,516

34,38232,74431,18529,700

Foreign Service Staff EmployeeClass IClass IIClass III

16,83316,03115,268

27,00025,71424,490

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

1.2

PERCENTAGEFrom 12COUNTRY/POST

829090909691779482

Buenos AiresCanberraMelbourne

SydneyViennaManamaDhakaBrussels'Brasilia

11610610610613011390

128 ,,)

93

ArgentinaAustralia

AustriaBahrain

BangladeshBelgiumBrazil

1III111111111111111111111111111111

'Hologram. 321262

.E!.9.m90919595959595939292989292

102-112

8992

128140128128128112

8984

10167

100113

130136136162162113

931139~

130113~193

!.Q75759391939191828989

10089898685907698939893928992798170838495909696

1281287778818090827585

BruneiCambodiaCanada

ChileChina

CNMICubaCzech Republic

EgyptFranceGabon

Germany

Greece

HungaryIndiaIndonesia

IranIraqIrelandIsraelItaly

Japan

Jordan

KenyaKuwaitLaosLebanon

LibyaMalaysiaMexico

Bandar Seri BegawanPhnom PenhMontrealOttawaTorontoVancouver

WinnipegSantiagoBeijingGuangzhouHong Kong SAR .

ShanghaiXiamen

SaipanHavana

PragueCairoParisLibrevilleBerlinBonn

HamburgAthens

BudapestNew DelhiJakartaManadoTehran

BaghdadDublin.Tel-AvivMilanRomeOsaka

TokyoAmmanNairobiKuwait CityVientianeBeirut

TripoliKuala LumpurMexico City

~IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIPGMA Hologr.m ~ 32127

"-'

f[Q.!:!l102

82

115128

110

130

1.13

89

102.

102

93

89

113

89

130

113

113

131

98

105

108

128

128

82

142

142

142

91

101

113

113

136

102

97110

94

95

.93"

100

93

I.g868383939093

105818086887885877981958686918092

10794947799

1071077789868686

100100100100100100100100100

PohnpeiYangonRabatThe Hague

WellingtonAbujaOsloMuscatIslamabadKororPort MoresbyLimaWarsawLisbonDohaBucharestMoscowJeddah

RiyadhDakar

SingaporePretoriaSeoulBarcelonaMadridColomboStockholmBerneGeneva

BangkokDiliAnkaraAbu DhabiDubaiLondon

AganaChicagoHonoluluHoustonLos AngelesNew OrleansNew YorkSan Diego

Micronesia

MyanmarMoroccoNetherlandsNew Zealand

NigeriaNorwayOmanPakistanPalauPapua New GuineaPeruPoland

PortugalQatarRomaniaRussiaSaudi Arabia

SenegalSingaporeSouth AfricaSouth Korea

Spain

Sri LankaSwedenSwitzerland

ThailandTimor-LesteTurkeyU.A.E.

United KingdomU.S.A.

Li

.Em!!!939696

1369384

!.Q100

100100968279

San FranciscoSeattleWashington, D.C.Holy SeeCaracasHanoi

VaticanVenezuelaVietnam

Husband and wife who are assigned in the same post shall beentitled to a separate allowance with index corresponding to theirrespective ranks.

1.3

The granting of overseas allowance shall be in accordance with theprovisions of Section 66 of R.A. 7157 and subject to the conditionthat nobody shall suffer a reduction as a result of these new rates. Incase of reduction, the rates shall apply prospectively and thepersonnel concerned shall continue to receive their present overseasallowance for the duration of their tour of duty at the post.

1.4

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

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

SECTION 2.0 UVING QUARTERS ALLOWANCE

The basic annual rates of living quarters allowance provided forunder Section 2 of Executive Order No. 101 for all PhilippineGovernment personnel stationed abroad are hereby amended asfollows:

RANKRATE

IN US DOLLARSWith Family Without Family.ErQ.m. !Q fr2..m !Q

Chief of Mission

33,984 42,871 27,777 35,041Head of Diplomatic Post

,

29,19935,723 23,14628,318Others, including ConsulGeneral

25,39420,13031,06424,625Career Minister

Foreign Service OfficerClass IClass IIClass IIIClass IV

23,08020,98619,07917,342

18,296

16,63615,124

13,747

28,24425,67423,34121,218

22,38920,35218,50316,820

Foreign Service Staff OfficerClass IClass IIClass IIIClass IV

17,34216,51815,73114,980

13,74713,09412,47011,875

16,82015,29014,56313,869

21,21819,28818,37117,496

13,58813,58813,588

15,86815,86815,868

10,77110,77110,771

foreign Service Staff EmployeeClass I 12,579Class II 12,579Class III 12,579

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

2.2

PERCENTAGE

ErQ.m !QCOUNTRY/POST

9097

100100130100

65130110

9590

100102102102

8595

100100120

9855

1201058585

100100102100

ArgentinaAustralia

AustriaBahrain

BangladeshBelgiumBrazilBruneiCambodiaCanada

Buenos AiresCanberraMelbourne

SydneyViennaManamaDhakaBrusselsBrasiliaBandar Seri BegawanPhnom PenhMontrealOttawaTorontoVancouver

6'

1008590

100110

9090

100909590

120120120120120102

9560956090

110

120120120145145

98789860

1209885

1101009560

11011270

1009095

100115100

95100100130, 95130100130130130130130

7095

, 70

95100130125130130150150100

90100

70125100

90115100100

7013011590

130

Chile-China

CNMICubaCzech Republic

EgyptFranceGabon

Germany

WinnipegSantiagoBeijingGuangzhouHong Kong SAR

ShanghaiXia men

SaipanHavana

PragueCairoParisLibrevilleBerlinBonn

HamburgAthens

BudapestNew DelhiJakartaManadoTehran

BaghdadDublinTel-AvivMilanRomeOsaka

TokyoAmmanNairobiKuwait CityVientianeBeirut

TripoliKuala LumpurMexico City

PohnpeiRabat

YangonThe Hague

Wellington'AbujaOslo

GreeceHungaryIndiaIndonesia

IranIraqIrelandIsraelItaly

Japan

Jordan

KenyaKuwaitLao RepublicLebanon

LibyaMalaysiaMexicoMicronesiaMorocco

MyanmarNetherlandsNew Zealand

NigeriaNorway

~'I"IIIIIII"III"'III'III'II"1

MA Holo~'.m' 32131

7

9860

100110

78

10070

10011590

130130100130130100100100100100125130130

70130130130

9510011010010013010010011010010010010010010010010013011570

--

9895959595

120100

95120

12060

120120120

8595

1009898

120100100110

909590

100909595

100120110

60

OmanPakistanPalauPapua New GuineaPeruPoland

PortugalQatarRomaniaRussiaSaudi Arabia

SenegalSingaporeSouth AfricaSouth KoreaSpain

Sri LankaSwedenSwitzerland

ThailandTimor-Leste

TurkeyU.A.E.

United KingdomU.S.A.

MuscatIslamabadKororPort MoresbyLimaWarsawLisbonDohaBucharestMoscowJeddah

RiyadhDakar

SingaporePretoriaSeoulBarcelonaMadridColomboStockholmBerneGeneva

BangkokDiliAnkaraAbu DhabiDubaiLondon

AganaChicagoHonoluluHoustonLos AngelesNew OrleansNew YorkSan DiegoSan FranciscoSeattleWashington, D.C.Holy SeeCaracasHanoi

VaticanVenezuelaVietnam

PGMAHolog'8m N 32132

8

2.3 The granting of living quarters allowance shall be in accordance withthe provisions of Section 65 of R.A. 7157 and subject to the conditionthat nobody shall suffer a reduction as a result of these new rates. Incase of reduction, the rates shall apply prospectively and thepersonnel concerned shall continue to receive their present livingquarters 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 postof assignment with the spouse or at least one (1) qualifieddependent child who has not reached 21 years of age shall beconsidered with family. Unmarried children who are mentally orphysically handicapped as attested to by a medical certificate,incapable of supporting themselves and living with the officer oremployee abroad, shall be considered, for this purpose, regardless ofage, as dependents. The return flight to Manila of legal dependentchildren, regardless of age, shall be at government expense.

2.5

Payment of the allowance shall be made strictly on the basis ofactual status at post. Those, however, whose dependents havetemporarily left their residence at the pOst shall retain their "withfamily" status: Provided, That for the duration of their absence, thepersonnel concerned shall not move to a cheaper or smaller lodging:Provided, further, That their absence at anyone time shall notexceed beyond three (3) months: Provided, finally, That thedependents have not established residence elsewhere. Gainfulemployment outside of post is an indication of having changeddomicile.

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 theallowance with index and, for purposes of family status under Section2.4 hereof, the other spouse shall be considered as dependent.

In case, where, because of acute housing shortage, prohibitive rentalcost or other circumstances, two (2) or more Foreign Servicepersonnel are constrained to rent one (1) apartment or housing unitjointly,

the claimants shall be entitled to their respective allowances:Provided, That the Head of Post shall certify in the claim voucherthat their individual allowance is insufficient to cover the rental ofone .( 1) apartment or housing unit at the post.

2.8

In posts where there is a standard practice among landlords torequire advance rental or deposit equivalent to at least six (6)months to one (1) year rental of the unit, payment of the advance

~H.I.gr.m.

32133

9

;;~j~j\

living quarters allowance sufficient to cover the required amount maybe authorized:. Provided, That the advance rental shall be paiddirectly to the landlord by the post: Provided, further, That theclaimant shall submit to the Home Office a copy of the pertinentcontract of lease duly certified by the Head of Post which shouldinvariably contain a diplomatic clause: Provided, finally, That, in caseof recall, reassignment or for any other reason, the unexpired portionof the amount paid shall be duly refunded to the post subject,however, to the condition that in case of force majeure whereby theunexpired portion is not refunded, the claimant shall not be heldaccountable.

2.9 In places where the new lessees are invariably required at the outsetto pay key money for goodwill and in places where lessees arerequired by the host government, or by customary business practice,to rent a house or apartment unit through an agent and pay thecorresponding real estate agent's fee or commission upon signing ofthe 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 cashvoucher that such payments are required by the host government orcustomary at the post and not refunded by the owner to the lessee:Provided, further, That any key money and/or real estate agent's feeor commission that may be required upon renewal of the leasecontract shall likewise be chargeable against the account of theDepartment concerned.

2.10 In lieu of commutable living quarters allpwance, payment of actualrental of quarters occupied by the Head of Post may be authorized,subject to the availability of funds and as may be warranted by thehousing situation in the post 'of assignment. Payment of the utilitiesshall be in accordance with regulations as may be prescribed by theSecretary of Foreign A~airs.

SECTION 3.0 REPRESENTA nON ALLOWANCE

3.1

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

3.1.1

High

Cost Posts

fr.2.m IQChief of Mission(not Head of Post)Career Minister

$

4,000.0013,000.00

$ 6,000.004,500.00

~IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII

PGMA Hologram N 32134

10

2,400.00

1,800.001,200.001,200.00

960.00

3,600.002,700.001,800.001,800.001,440.00

FSO IFSO IIFSO IIIFSO IVFSSO IOthers duly authorizedby the Secretary

960.00

1,440.00

3.1.2 Medium Cost Posts

f!.2m !.Q

$

2,400.002,400.001,920.001,440.00

960.00960.00720.00

$ 3,600.003,600.002,880.002,160.001,440.001,440.001,080.00

Chief of Mission(not Head of Post)Career MinisterFSO IFSO IIFSO IIIFSO IVFSSO IOthers duly authorizedby the Secretary

720.001,080.00

3.1.3 Low Cost Posts

E!:9.m !.Q

$1,800.001,800.001,400.001,080.00

720.00720.00600.00

$ 2,700.002,700.002,100.001,620.001,080.00

1,080.00900.00

Chief of Mission(not Head of Post)Career MinisterFSO IFSO IIFSO IIIFSO IVFSSO IOthers duly authorizedby 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 rangeof 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 FAMIL Y ALLOWANCE

An officer or employee, other than an alien or casual/contractualemployee, who is assigned abroad and whose family resides with himat the post of assignment, shall be entitled to a commutable familyallowance equivalent to:

4.1

a,b,

US$ 150.00 per month for the dependent spouseUS$ 75.00 per month for each dependent child not exceedingthree (3) in number.

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

Unmarried children who are mentally or physically handicapped asattested to by medical certificate, incapable of supporting themselvesand living with the officer or employee abroad, shall be considered,for this purpose, regardless of age, as dependents.

4.3

4.4 Subject to the prior approval of the Department Head, full familyallowance may be paid to any claimant whose dependent does notlive with him at the post of assignment under any of the following

circumstances:

He is compelled to live alone due to dangerous, notablyunhealthy or excessively adverse living conditions, or by otherunavoidable circumstances like lack of appropriate, reasonableeducational facilities for his children; or

a.

b.

~IIII\IIIIIIII\IIIII\IIIII\IIIIIIPGMA Hologr.m' 32136

All other meritorious cases may be considered by the DepartmentHead as the circumstances and the exigencies of the Service maywarrant.

SECTION 5.0 MODE OF PA YMENT

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

SEmON 6.0 ADJUSTMENT OF RA TES

6.1

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

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

SECTION 7.0 EXEMPlION FROM TAXA lION

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

SECTION 8.0 FUNDING REQUIREMENTS

8.1

The amount needed to cover the foregoing adjustments in theforeign service compensation of personnel stationed abroad shall betaken from the appropriations for allowances and from whateversavings realized by the Department or the agency concerned duringFYs 2005 and 2006. Thereafter I such amounts as may be necessaryshall be included in the budget proposal of the Department or theagency concerned.

3

SECTION 9.0 SUPPLEMENTARY RULES AND REGULA lIONS

The supplemen~ry rules and regulations to implement this ExecutiveOrder shal~ be issued by the Secre~ry of Foreign Affairs.

SECTION 10.0 SEPARABILITY CLAUSE

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

SECTION 11.0 REPEAUNG CLAUSE

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

SECTION 12.0 EFFEC71V11YDATE

This Order shall take effect immediately.

Done in the City of Manila this 5th day ofof our Lord, two thousand and five.

in the year

September

By the President:

"L.~EDUARDO R. ERMIT A

Executive Secretary

4