Question & AnswerQ&A (LETTER OF IMPLEMENTATION NO. 63)
It applies exclusively to personnel of the National Government whose assignments abroad are approved by the Secretary of Foreign Affairs and whose assimilated ranks are given under the provisions of the Letter. It covers several departments and agencies such as the Department of Foreign Affairs, Department of National Defense, Department of Agriculture, and others as approved.
For personnel outside the Department of Foreign Affairs, whose salaries are below the minimum class and grade of their assimilated ranks, salaries will be adjusted to the minimum effective January 1, 1978, subject to availability of funds. Those whose salaries are equal or higher continue to receive their present salary with possible adjustment of overseas allowance.
Salaries are paid in Philippine pesos or its equivalent in foreign currency, computed based on prevailing exchange rates established by the Central Bank of the Philippines.
Assimilated ranks are designations assigned for compensation purposes to personnel stationed abroad from various departments, aligning them with Foreign Service Officer or Staff Officer classes. These ranks do not confer diplomatic status for protocol purposes.
The President assigns assimilated ranks based on the recommendation of the Secretary of Foreign Affairs and the Commissioner of the Budget.
Overseas allowance is based on rank classifications (Chief of Mission, Career Ministers, Foreign Service Officers Classes I-IV, Staff Officers) with specified annual rates in US dollars, adjusted by a percentage called the DFA index depending on the host country's cost of living.
Family allowance assists personnel living with their family at the post to cover increased expenses. It is payable to officers/employees with dependent spouses and/or unmarried minor dependent children (max three), provided the family resides with the personnel at the post.
Termination occurs upon violation of entitlement conditions, departure for home assignment, the death of the spouse, majority/emancipation of children, or authorized family departure to the Philippines.
The education allowance reimburses tuition fees up to $1,000 per child per school year for primary and elementary grades. It does not cover costs like supplies or lodging. Assignments in the USA (including Guam and Honolulu), Australia, New Zealand, UK and Ireland, and Canada are excluded from this benefit.
Representation allowance rates depend on the position (Chiefs of Mission, Career Ministers, FSO classes), with variations for high, medium, and low-cost posts. It accrues starting the first day of the month after arrival and ceases end of the month of departure from the post.
Living quarters allowance provides an annual amount depending on rank and family status (with or without family). It's adjusted according to a DFA index reflecting housing cost variations by post. Quarters on lease-purchase may receive 50% adjusted allowance capped to allowable rates.
Clothing allowance is based on climatic zones of the post (tropical or temperate) with specified annual rates for Chiefs of Mission, FSOs, and Staff Officers/Employees.
Personnel and their dependents may be required to subscribe to medical insurance. The government pays 75% of premiums, while personnel pay 25%. If no insurance scheme exists, the government reimburses reasonable medical expenses incurred, subject to conditions.
Yes, personnel assigned abroad who come to Manila for official consultation or detail are entitled to the same per diem rates applicable to other government officials and employees, overseas allowance is given but not beyond 30 days from arrival unless approved otherwise.
All allowances and privileges except basic salary are considered paid in furtherance of the interests of the Republic of the Philippines and thus have specific tax considerations under Section 9 of PD No. 1285.
The Head of Department concerned is held personally liable for any payments that are not in accordance with this Letter of Implementation.