Law Summary
Salary Provisions
- Salaries for non-Foreign Affairs personnel abroad with salaries below minimum assimilated rank class/grade to be adjusted to minimum based on P.D. No. 905 rates.
- Salaries equal to or above minimum will continue as is; overseas allowances adjusted accordingly.
- Payment in Philippine pesos or foreign currency equivalent based on prevailing Central Bank rates.
- Upon recall to Home Office, personnel paid per national compensation plan and cease to be foreign service personnel for compensation.
Assimilated Ranks and Assignment
- Defined assimilated ranks for various agencies and personnel (e.g., Agriculture Attache - FSO III).
- No rank above Foreign Service Officer Class 1 assigned outside Department of Foreign Affairs, except presidential appointment.
- Assignments abroad and appointment require prior clearance of Secretary of Foreign Affairs.
- Assimilated ranks for compensation only, not conferring diplomatic status; civil attaches rank after lowest FSO.
- Confirmation of ranks by Secretary of Foreign Affairs for currently stationed personnel.
Overseas Allowance
- Basic annual overseas allowance rates set by rank, e.g., Chief of Mission $19,700, FSO I $12,150.
- Allowance accrues from date of departure Manila, ceases on arrival Manila.
- Adjustment via DFA Index based on post and country cost of living.
- Special provisions when spouses both assigned at same post.
- No DFA index application enroute to or from post.
Family Allowance
- Defined allowance to assist incremental family expenses abroad for spouse and up to 3 dependent children.
- Entitlement: US$480 per spouse, US$360 per child annually, payable monthly.
- Accrues upon arrival of dependents at post; terminates on various conditions (e.g., death, departure, violation).
- Adjustments for changes in family status.
- Requirement for claim certification with supporting documents.
- Meritorious cases allow full allowance even if family does not reside at post for safety or government needs.
Education Allowance
- Reimbursement up to US$1,000 per child per school year for tuition/matriculation fees for primary and elementary levels.
- Excludes costs like transportation, board, tutors, exam fees.
- Not granted for certain countries (USA, Australia, UK, Canada, New Zealand, Ireland).
- Transportation costs up to US$1,000 reimbursed if child enrolled in above countries due to inadequate local facilities.
Representation Allowance
- Annual reimbursable rates set by position and post cost category (high, medium, low).
- High cost posts include major European cities; medium includes capitals like Canberra; low cost include Rangoon, Hanoi.
- Chiefs of mission, career ministers, FSOs, and authorized staff officers eligible.
- No allowance when acting as charge d’affaires temporarily.
- Accrues monthly; payment can be advanced subject to COA rules.
- Expenses must be justified, receipted if over US$50; guest lists required for entertainment.
- Strict accounting governed by COA regulations.
Living Quarters Allowance (LQA)
- Rates differentiated by rank and family status.
- Joint-lessee personnel entitled to 50% LQA if sharing quarters.
- Accrues from month following arrival, ceases end of month after departure; no per diem substitute.
- DFA index applied to adjust LQA by post cost.
- Option to reimburse actual rental with certification.
Clothing Allowance
- Annual rates vary by rank and climate zone (Tropical or Temperate).
- Temperate countries have four seasons, tropical have dry/wet seasons.
Medical Allowance
- Government reimburses 75% of medical insurance premiums; personnel pay 25%.
- If no insurance available, medical and hospitalization costs reimbursed up to US$1,000 (excluding injuries from misconduct).
- Travel expenses of attendant covered if necessary.
- Covers legal spouse and up to three dependent children residing at post.
Provisions for Official Consultation or Detail in Manila
- Assigned officers traveling to Manila for official purposes get usual per diem and overseas allowance up to 30 days.
Recall to Home Office
- Recalled personnel not entitled to per diem despite contrary existing rules.
Taxation
- All allowances and privileges other than basic salary are deemed paid in the interest of the Republic; exempt from personal income tax under P.D. No. 1285.
Financial and Administrative Provisions
- Implementation subject to availability of funds and agency expenditure programming.
- Heads of agencies personally liable for improper payments.
- Secretary of Foreign Affairs and Budget Commissioner to promulgate implementing rules.
- No reduction in compensation for any personnel with the new system.
Effectivity
- Effective retroactively from January 1, 1978.