Legal basis and governing framework
- Section 76 of President Decree No. 1177 governs subsistence, prohibiting the grant of subsistence whose cost is payable from any fund except for specified exceptions and circumstances.
- Executive Order No. 346 is issued to increase the subsistence allowance rates allowed under Section 76 of President Decree No. 1177.
- Executive Order No. 257 is cited as providing an increase in subsistence allowance for certain armed forces and related personnel.
- Section 5 of Presidential Decree No. 1597 provides that allowances, honoraria, and other fringe benefits granted to government employees require President’s approval upon recommendation of the Secretary (Commissioner) of the Budget, which supports the issuance of this order.
Policy, purpose, and rationale
- The order is premised on the finding that rising commodity prices have made the existing subsistence allowance rate inadequate to cover food costs.
- The order aims to rationalize and standardize the subsistence allowance rate of the officials and employees enumerated in Section 76 of President Decree No. 1177.
- The order ties the adjusted rates to the conditions governing subsistence under Section 76 of President Decree No. 1177 and to the budget approval framework in Presidential Decree No. 1597.
Coverage: who receives the increased rate
- Section 1 increases the subsistence allowance rate for the officials and employees enumerated in Section 76 of Presidential Decree No. 1177.
- The coverage is the group of personnel who qualify under Section 76 of Presidential Decree No. 1177, which includes (subject to that section’s conditions) those such as:
- Marine officers, engineers, and crew of government vessels, launches, and motorboats who take meals on the mess when abroad those vessels;
- Lightkeepers and other employees in light stations authorized to receive subsistence and furnished raw, canned, or preserved food supplies;
- Officials and employees required to render service within the premises of hospitals, penal institutions, leper institutions, military installations, and similar institutions for a continuous period that includes meal time, and who live in the premises to make services available at all times (when full subsistence is required);
- Laborers temporarily fielded to isolate or unsettled district who are furnished the usual rations or the equivalent in cash at government expense;
- Hospital and leper institution personnel entitled to subsistence allowance when there are no mess halls or when mess halls are inadequate, upon request subject to department head approval at authorized rates chargeable against applicable appropriations.
Increased subsistence allowance rates
- Section 1 sets the subsistence allowance for the covered officials and employees at PHP 18.00 per day.
- Section 1 provides an equivalent per-meal rate of PHP 6.00 per meal.
- The increase applies to the subsistence allowance rate under Section 76 of President Decree No. 1177 for the covered personnel.
Implementation guidelines and effect on budgets
- Section 3 requires the Department of Budget and Management to issue the necessary guidelines to implement the order.
- Section 2 conditions the order’s effectivity on availability of funds for the purpose or savings from the 1989 appropriation of each agency concerned.
- Implementation is therefore tied to CY 1989 budgeting readiness per agency.