Implementing Rules: Department of Migrant Workers Act

The letter is issued pursuant to P.D. No. 905, which establishes the basis for discontinuing the preferential conversion rate for foreign service basic salaries.
P.D. No. 1285 and Executive Order No. 495 are cited as establishing and defining the foreign service compensation plan for the national government.
Salary adjustments are authorized to achieve compliance with P.D. No. 1285 and Executive Order No. 495.

The letter directs compensation restructuring to rationalize the existing system of foreign service compensation.
The letter bases adjustments on the need to take account of the increased cost of living in most posts abroad.
The letter implements the discontinuation of the old preferential conversion rate to align foreign service salary payments with P.D. No. 905.

The core salary and conversion-rules apply to officers and employees of the Department of Foreign Affairs who are assigned abroad.
Overseas Allowance payments denominated in US dollars apply to foreign service personnel stationed abroad under the letter’s directed rates.
Compensation structure and policies are also evaluated for agencies other than the Department of Foreign Affairs with staff members stationed abroad, through recommendations to the President for transitional measures and changes.
Salary, allowances, and benefits adjustments for those other agencies are governed by a separate approval condition stated in the letter.

Pursuant to P.D. No. 905, the practice of paying the basic salary of Department of Foreign Affairs officers and employees assigned abroad at the rate of P2.00 - US$1.00 is discontinued effective January 1, 1978.
Instead of the discontinued preferential conversion rate, payment of basic salary shall be made in Philippine pesos or equivalent foreign currency.
Basic salary payment must be computed using prevailing rates as established by the Central Bank of the Philippines.

The letter authorizes the full adjustment of the salary of each class and grade of Department of Foreign Affairs personnel in accordance with the rates established under P.D. No. 905, effective January 1, 1978.
Salary increases must be based on the class and grade to which each official and employee is actually appointed as of December 31, 1977.

To make up for the financial loss resulting from the discontinuation of the old preferential conversion rate previously applicable to salaries and allowances, the letter directs payment of Overseas Allowance denominated in US dollars.
The directed Overseas Allowance rates are:
- Chief of Mission (Head of Diplomatic Mission): $119,700
- Chief of Mission (Others including those assigned as Consul General): $17,500
- Career Minister: $14,400
- Foreign Service Officer (including those with assimilated rank):
  - Class I: $12,150
  - Class II: $10,800
  - Class III: $8,900
- Foreign Service Staff Officer:
  - Class I: $7,000
  - Class II: $6,350
  - Class III: $5,600
- Foreign Service Staff Employees:
  - Class I: $4,950
  - Class II: $4,300
  - Class III: $3,750
The allowance is directed specifically to compensate for financial loss from discontinuing the old preferential conversion rate applicable to foreign service personnel stationed abroad.

The existing amounts and conditions of allowances granted to foreign service personnel remain in force.
Existing allowances remain in force except where the President approves changes upon recommendation of the Secretary of Foreign Affairs and the Commissioner of the Budget.

The Secretary of Foreign Affairs must evaluate the compensation structure and policies affecting staff members of agencies other than the Department of Foreign Affairs stationed abroad.
The Commissioner of the Budget must evaluate the compensation structure and policies for such agencies.
The Heads of agencies with staff members assigned abroad must participate in the evaluation of compensation structure and policies pertaining to staff members of agencies other than the Department of Foreign Affairs.
The evaluators must recommend to the President transitional measures and changes needed to achieve compliance with P.D. No. 1285 and Executive Order No. 495.
No adjustments in basic salary, allowances, and benefits for agencies other than the Department of Foreign Affairs shall be made pending approval of the recommendations directed under the letter.

The letter establishes effectivity through the express effective date January 1, 1978 for (a) discontinuation of the old conversion practice for basic salaries and (b) full adjustment of salary rates by class and grade for Department of Foreign Affairs personnel.
The letter authorizes salary and allowance restructuring aligned with P.D. No. 1285, Executive Order No. 495, and P.D. No. 905 through directed conversion rules, class-and-grade salary adjustments, and the Overseas Allowance schedule.