Revision of Overseas Allowance Indices
- Updates the overseas allowance indices per country/post to reflect cost of living changes.
- Assigns specific percentage indices to numerous global postings such as Argentina, Australia, Bahrain, Canada, Germany, Japan, UK, USA, among others.
- Allows adjustment based on cost of living, extraordinary expenses, or adverse conditions.
Additional Allowances for Hardship Posts and Family Assignments
- Provides a 5% increment on allowances for posts with hazardous or adverse living conditions.
- Separate allowances for husband and wife assigned to the same post, based on their respective ranks.
Living Quarters Allowance (LQA) Structure
- Specifies rates for LQA with and without family status according to rank.
- Updates LQA indices for posts worldwide, reflecting local housing costs.
- Clarifies criteria for family status including married personnel, widowed or legally separated with dependents, and handicapped children as dependents.
Rules on LQA Disbursement and Special Circumstances
- Only one spouse (the higher-ranked) entitled to full LQA, with the other considered dependent.
- Allows joint rental arrangements with certification from the head of post.
- Provides for advance living quarters payments in cases of high rental deposits.
- Permits payments for customary agent fees and key money under certifiable conditions.
- Authorizes actual rental payments instead of commutable allowance for heads of posts, with utilities at their own expense.
Additional Allowances: Post and Representation Allowances
- Post allowance granted per R.A. 7157 Section 69.
- Representation allowance granted per R.A. 7157 Section 70.
- Classification of posts into High, Medium, and Low cost for tailored representation allowances.
Annual Rate Adjustments and Application to New Posts
- Allowances may be adjusted yearly by Secretaries of Foreign Affairs and Budget and Management with Presidential approval.
- Use of index from the nearest post for newly opened posts pending specific index approval.
Tax Exemption of Allowances
- All compensation components except base salary are exempt from Philippine income tax while assigned abroad.
Budgeting and Funding of Allowances
- Adjustments funded from existing appropriations and any savings during the fiscal year.
- Future funding to be included in departmental or agency budget proposals.
Implementation and Supplemental Rules
- Secretary of Foreign Affairs authorized to issue supplementary rules and regulations for enforcement.
Legal Provisions: Separability, Repeal, and Effectivity
- Invalidity of any provision does not affect the remainder of the order.
- Repeals inconsistent orders, letters, and regulations.
- Order takes effect immediately upon signing.