Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 1285)
The title is 'Foreign Service Compensation Decree of 1978.'
It establishes a system of compensation standards and policy for Philippine government personnel stationed abroad, considering currency fluctuations, differing cost of living, and consistency with the national compensation and classification system.
It covers officials and personnel of the Department of Foreign Affairs, Department of Trade, Department of Finance, and other agencies stationed abroad.
The principal officer appointed by the President to be in charge of a Philippine embassy, legation, or other diplomatic mission abroad, or other designated diplomatic agents such as minister resident or charge d'affaires.
It refers to the floating rate established by the Central Bank of the Philippines for the sale of US Dollar or other applicable foreign currencies.
The President, upon the recommendation of the Secretary of Foreign Affairs and the Commissioner of the Budget.
Overseas allowance, living quarters allowance, clothing allowance, post allowance, representation allowance, education allowance, medical allowance, and family allowance.
Adjustments can be recommended not more than once a year, jointly by the Secretary of Foreign Affairs, the Commissioner of the Budget, and the Governor of the Central Bank based on official price indices and currency fluctuations.
It shall be paid in Philippine pesos or the equivalent in foreign currency at the prevailing Central Bank foreign exchange conversion rate at the time of remittance.
Yes, both their basic salary and allowances are subject to income tax under applicable internal revenue laws. However, overseas allowance is considered paid in furtherance of the interests of the Philippines for tax status purposes.
They are computed on the basis of actual salary and paid in Philippine pesos, consistent with the treatment of home office personnel retiring in the Philippines.
Allowances may be denominated in US Dollars or the currency of the post to which a foreign service staff member is assigned.
All laws, executive orders, decrees, rules, and regulations inconsistent with this decree are repealed or amended accordingly.