Question & AnswerQ&A (EXECUTIVE ORDER NO. 101)
Presidential Decree No. 1285 established the system of compensation standards and policies for personnel of the Philippine Government stationed abroad.
Overseas allowance indices may be adjusted when there is a proportionately high cost of living at the post abroad, when officers or employees incur extraordinary and necessary expenses not otherwise compensated, or when officers must stay at posts with dangerous, unhealthy, or excessively adverse living conditions.
Hardship posts as determined by the Secretary receive an additional five percent (5%) increase in their overseas allowance to cover expenses due to dangerous, unhealthy, or adverse living conditions.
Husband and wife assigned to the same post are each entitled to a separate overseas allowance corresponding to their respective ranks, but only the spouse with the higher rank is entitled to the living quarters allowance, with the other spouse considered a dependent for this purpose.
Philippine Foreign Service establishments are categorized as high cost posts, medium cost posts, and low cost posts for the grant of representation allowance.
No, all allowances, per diems, benefits, and similar compensation received by Foreign Service officers and employees for their service abroad, except their basic salaries, are exempt from Philippine income tax.
The Secretary of Foreign Affairs and the Secretary of Budget and Management, upon approval of the Office of the President, have the authority to adjust allowance rates once a year.
Personnel are considered "with family" if married and living at the post with spouse or at least one dependent child; widow/widower or legally separated persons with at least one dependent child at the post are also considered "with family." Singles, widows/widowers, or legally separated without dependents are considered "without family."
The adjustments shall be funded initially from appropriations for allowances and any savings realized by the concerned department or agency, and thereafter from the budget proposals of those departments or agencies.