Title
Increase in Daily Subsistence Allowance Rates
Law
Executive Order No. 346
Decision Date
Feb 2, 1989
Executive Order No. 346 increases the subsistence allowance for certain officials and employees in the government to address the rising cost of food, with the rate set at P18.00 per day or P6.00 per meal, pending availability of funds and guidelines from the Department of Budget and Management.
A

Definitions and Conditions for Subsistence Allowance

  • Subsistence means the provision of meals or cash equivalent for meals.
  • Allowed only if appropriations are specifically provided for the subsistence.
  • Provision covers situations where mess halls are absent or inadequate.

Rationale for Increase

  • Current rates found insufficient due to inflation and rising commodity prices.
  • Existing allowance for Armed Forces personnel increased from ₱12.00 to ₱18.00 per day by Executive Order No. 257.
  • Need for rationalizing and standardizing subsistence allowance rates across covered officials and employees.

Legal Basis for Authority and Approval

  • Section 5 of Presidential Decree No. 1597 requires that any allowance, honoraria or fringe benefit for government employees must have Presidential approval upon Budget Secretary recommendation.

New Rates

  • Daily subsistence allowance increased to ₱18.00 per day.
  • Equivalent to ₱6.00 per meal assuming three meals per day.

Implementation

  • Effective not earlier than calendar year 1989, dependent on fund availability or savings in the 1989 budget of respective agencies.
  • Department of Budget and Management tasked with issuing implementing guidelines.

Summary of Procedures and Responsibilities

  • Department heads approve subsistence requests where mess halls are inadequate.
  • Allowances chargeable to appropriate budget lines for supplies and materials.
  • Agencies must manage fund availability for implementing rate increase.

Penalties and Enforcement

  • Not explicitly stated in the order.
  • Compliance implied through budgetary controls and administrative supervision.

Important Legal Concepts

  • Subsistence allowance is a form of government employee welfare benefit.
  • Must be budgeted and approved within legal frameworks.
  • Rate adjustments respond to economic changes impacting cost of living.
  • Coordination between departments (Budget and agencies) essential for proper implementation.

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