Title
Supreme Court
Foreign service compensation rules 1978
Law
Letter Of Implementation No. 63
Decision Date
Mar 16, 1978
A Philippine law outlining compensation provisions for government personnel stationed abroad, including salary adjustments, assimilated ranks, and various allowances, with implementation subject to availability of funds and additional regulations by the Secretary of Foreign Affairs and Commissioner of the Budget.

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.

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