Executive Order No. 461 (2005)

[ EXECUTIVE ORDER NO. 461, September 05, 2005 ]

REVISING FURTHER THE COMPENSATION PLAN OF THE FOREIGN SERVICE OF THE PHILIPPINES

WHEREAS , Republic Act No. 7157, otherwise known as the Philippine Foreign Service Act of 1991, provides that the President shall approve, upon recommendation of the Secretary of Foreign Affairs and the Secretary of Budget and Management, the rates, indices and maximum allowable amounts and policies on allowances which shall be applicable to all national government employees stationed abroad pursuant to the Foreign Service Compensation Decree;

WHEREAS , Executive Order No. 101, dated 15 June 1993, provides for the revision of the Compensation Plan of the Foreign Service of the Philippines;

WHEREAS , no adjustment has ever been made since the issuance of said Executive Order;

WHEREAS , since that time, there have been significant changes in the economic scenario which have resulted in a general increase in the cost of living abroad;

WHEREAS , it is necessary for government to provide, within its financial capability, personnel assigned abroad with a fairly adequate means to enable them to live in a manner befitting their representative capacity so as to ably represent the country with distinction and dignity;

NOW, THEREFORE, I, GLORIA MACAPAGAL ARROYO , President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby approve the following rates, rules and regulations to be observed in the payment of compensation to personnel of the National Government in the Foreign Service.

SECTION 1.0 OVERSEAS ALLOWANCE 1.1 The basic annual rates of overseas allowance provided for under Section 1 of Executive Order No. 101 for all Philippine Government personnel stationed abroad are hereby amended as follows: RANK RATE IN US DOLLARS From To Chief of Mission Head of Diplomatic Post 43,391 69,599 Others, including Consul 37,731 60,521 GeneralCareer Minister 32,809 52,626 Foreign Service Officer Class I 28,530 45,762 Class II 25,936 41,601 Class III 23,578 37,819 Class IV 21,435 34,382 Foreign Service Staff Officer Class I 21,435 34,382 Class II 20,414 32,744 Class III 19,442 31,185 Class IV 18,516 29,700 Foreign Service Staff Employee Class I 16,833 27,000 Class II 16,031 25,714 Class III 15,268 24,490 1.2 The overseas allowance indices provided for under Section 1.2 and Section 5.2 of Executive Order No. 101 are hereby revised and the newly proposed posts are also given an index as follows: COUNTRY/POST PERCENTAGE From To Argentina Buenos Aires 116 82 Australia Canberra 106 90 Melbourne 106 90 Sydney 106 90 Austria Vienna 130 96 Bahrain Manama 113 91 Bangladesh Dhaka 90 77 Belgium Brussels 128 94 Brazil Brasilia 93 82 Brunei Bandar Seri 90 75 Begawan Cambodia Phnom Penh 91 75 Canada Montreal 95 93 Ottawa 95 91 Toronto 95 93 Vancouver 95 91 Winnipeg 95 91 Chile Santiago 93 82 China Beijing 92 89 Guangzhou 92 89 Hong Kong SAR 98 100 Shanghai 92 89Xiamen 92 89 CNMI Saipan 102 86 Cuba Havana 112 85 Czech Republic Prague 89 90 Egypt Cairo 92 76 France Paris 128 98 Gabon Libreville 140 93 Germany Berlin 128 98 Bonn 128 93 Hamburg 128 92 Greece Athens 112 89 Hungary Budapest 89 92 India New Delhi 84 79 Indonesia Jakarta 101 81 Manado 67 70 Iran Tehran 100 83 Iraq Baghdad 113 84 Ireland Dublin — 95 Israel Tel-Aviv 130 90 Italy Milan 136 96 Rome 136 96 Japan Osaka 162 128 Tokyo 162 128 Jordan Amman 113 77 Kenya Nairobi 93 78 Kuwait Kuwait City 113 81 Laos Vientiane 91 80 Lebanon Beirut 130 90 Libya Tripoli 113 82 Malaysia Kuala Lumpur 91 75 Mexico Mexico City 93 85 Micronesia Pohnpei 102 86 Myanmar Yangon 82 83 Morocco Rabat 115 83 Netherlands The Hague 128 93 New Zealand Wellington 110 90 Nigeria Abuja 130 93 Norway Oslo — 105 Oman Muscat 113 81 Pakistan Islamabad 89 80 Palau Koror 102 86 Papua New Port Moresby 102 88 GuineaPeru Lima 93 78 Poland Warsaw 89 85 Portugal Lisbon — 87 Qatar Doha 113 79 Romania Bucharest 89 81 Russia Moscow 130 95 Saudi Arabia Jeddah 113 86 Riyadh 113 86 Senegal Dakar 131 91 Singapore Singapore 98 80 South Africa Pretoria 105 92 South Korea Seoul 108 107 Spain Barcelona 128 94 Madrid 128 94 Sri Lanka Colombo 82 77 Sweden Stockholm 142 99 Switzerland Berne 142 107 Geneva 142 107 Thailand Bangkok 91 77 Timor-Leste Dili 101 89 Turkey Ankara 113 86 U.A.E. Abu Dhabi 113 86 Dubai — 86 United Kingdom London 136 100 U.S.A. Agana 102 100 Chicago 97 100 Honolulu 110 100 Houston 94 100 Los Angeles 95 100 New Orleans 93 100 New York 100 100 San Diego 93 100 San Francisco 93 100 Seattle 96 100 Washington, 96 100 D.C. Vatican Holy See 136 96 Venezuela Caracas 93 82 Vietnam Hanoi 84 79 1.3 Husband and wife who are assigned in the same post shall be entitled to a separate allowance with index corresponding to their respective ranks.1.4 The granting of overseas allowance shall be in accordance with the provisions of

Section 66 of R.A. 7157 and subject to the condition that nobody shell suffer a reduction as a result of these new rates. In case of reduction, the rates shall apply prospectively and the personnel concerned shall continue to receive their present overseas allowance for the duration of their tour of duty at the post. Hardship posts as may be determined by the Secretary shall receive an additional five percent (5%) increase in their overseas allowance to meet other expenses brought about by dangerous, unhealthy or excessively adverse living conditions prevailing at post, subject to the availability of funds. 1.6 Foreign Service personnel assigned abroad, including Chiefs of Mission, who are detailed to another post shall, for the duration of the detail, be entitled to the overseas allowance index of the post where they are temporarily assigned.

SECTION 2.0 LIVING QUARTERS ALLOWANCE The basic annul rates of living quarters allowance provided for under Section 2 of Executive Order No. 101 for all Philippine Government personnel stationed abroad are hereby amended as follows: RANK RATE IN US DOLLARS With Family Without Family From To From To Chief of Mission Head of Diplomatic 33,984 42,871 27,777 35,041 Post Others including 28,318 35,723 23,146 29,199 Consul General Career Minister 24,625 31,064 20,130 25,394 Foreign Service Officer Class I 22,389 28,244 18,296 23,080 Class II 20,352 25,674 16,636 20,986 Class III 18,503 23,341 15,124 19,079 Class IV 16,820 21,218 13,747 17,342 Foreign Service Staff Officer Class I 16,820 21,218 13,747 17,342 Class II 15,290 19,288 13,094 16,518 Class III 14,563 18,371 12,470 15,731 Class IV 13,869 17,496 11,875 14,980 Foreign Service Staff Employee Class I 12,579 15,868 10,771 13,588 Class II 12,579 15,868 10,771 13,588 Class III 12,579 15,868 10,771 13,5882.2 The living quarters allowance indices provided for under Section 2.2 and Section 5.2 of Executive Order No. 101 are hereby revised and the newly opened posts are given an index as follows: COUNTRY/POST PERCENTAGE From To Argentina Buenos Aires 85 90 Australia Canberra 95 97 Melbourne 100 100 Sydney 100 100 Austria Vienna 120 130 Bahrain Manama 98 100 Bangladesh Dhaka 55 65 Belgium Brussels 120 130 Brazil Brasilia 105 110 Brunei Bandar Seri 85 95 Begawan Cambodia Phnom Penh 85 90 Canada Montreal 100 100 Ottawa 100 102 Toronto 102 102 Vancouver 100 102 Winnipeg 100 100 Chile Santiago 85 90 China Beijing 90 95 Guangzhou 100 100 Hong Kong SAR 110 115 Shanghai 90 100 Xiamen 90 195 CNMI Saipan 100 100 Cuba Havana 90 100 Czech Republic Prague 95 130 Egypt Cairo 90 95 France Paris 120 130 Gabon Libreville 120 100 Germany Berlin 120 130 Bonn 120 130 Hamburg 120 130 Greece Athens 102 130 Hungary Budapest 95 130 India New Delhi 60 70 Indonesia Jakarta 95 95 Manado 60 70Iran Tehran 90 95 Iraq Baghdad 110 100 Ireland Dublin — 130 Israel Tel-Aviv 120 125 Italy Milan 120 130 Rome 120 130 Japan Osaka 145 150 Tokyo 145 150 Jordan Amman 98 100 Kenya Nairobi 78 90 Kuwait Kuwait City 98 100 Lao Republic Vientiane 60 70 Lebanon Beirut 120 125 Libya Tripoli 98 100 Malaysia Kuala Lumpur 85 90 Mexico Mexico City 110 115 Micronesia Pohnpei 100 100 Morocco Rabat 95 100 Myanmar Yangon 60 70 Netherlands The Hague 110 130 New Zealand Wellington 112 115 Nigeria Abuja 70 90 Norway Oslo — 130 Omar Muscat 98 100 Pakistan Islamabad 60 70 Palau Koror 100 100 Papua New Port Moresby 110 115 Guinea Peru Lima 78 90 Poland Warsaw — 130 Portugal Lisbon — 130 Qatar Doha 98 100 Romania Bucharest 95 130 Russia Moscow 95 130 Saudi Arabia Jeddah 95 100 Riyadh 95 100 Senegal Dakar 120 100 Singapore Singapore 100 100 South Africa Pretoria 95 100 South Korea Seoul 120 125 Spain Barcelona — 130 Madrid 120 130 Sri Lanka Colombo 60 70Sweden Stockholm 120 130 Switzerland Berne 120 130 Geneva 120 130 Thailand Bangkok 85 95 Timor-Leste Dili 95 100 Turkey Ankara 100 110 U.A.E. Abu Dhabi 98 100 Dubai 98 100 United Kingdom London 120 130 U.S.A. Agana 100 100 Chicago 100 100 Honolulu 110 110 Houston 90 100 Los Angeles 95 100 New Orleans 90 100 New York 100 100 San Diego 90 100 San Francisco 95 100 Seattle 95 100 Washington, D.C. 100 100 Vatican Holy See 120 130 Venezuela Caracas 110 115 Vietnam Hanoi 60 70 2.3 The granting of living quarters allowance shall be in accordance with the provisions of Section 65 of R.A. 7157 and subject to the condition that nobody shall suffer a reduction as a result of these new rates. In case of reduction, the rates shall apply prospectively and the personnel concerned shall continue to receive their present living quarters allowance for the duration of their tour of duty at the post. 2.4 For purposes of this allowance, personnel who are living at the post of assignment with the spouse or at least one (1) qualified dependent child who has not reached 21 years of age shall be considered with family. Unmarried children who are mentally or physically handicapped as attested to by a medical certificate, incapable of supporting themselves and living with the officer or employee abroad, shall be considered, for this purpose, regardless of age, as dependents. The return flight to Manila of legal dependent children, regardless of age, shall be at government expense. 2.5 Payment of the allowance shall be made strictly on the basis of actual status at post. Those, however, whose dependents have temporarily left their residence at the post shall retain their “with family” status: Provided, That for the duration of their absence, the personnel concerned shall not move to a cheaper or smaller lodging: Provided, further, That their absence at any one time shall not exceed beyond three (3) months: Provided, finally, That the dependents have not established residence elsewhere. Gainful employment outside of post is an indication of having changed domicile.2.6 In the case of husband and wife who are both assigned in one (1) post, only the spouse with the higher rank shall be entitled to the allowance with index and, for purposes of family status under Section 2.4 hereof, the other spouse shall be considered as dependent. 2.7 In case, where, because of acute housing shortage, prohibitive rental cost or ether circumstances, two (2) or more Foreign Service personnel are constrained to rent one (1) apartment or housing unit jointly, the claimants shall be entitled to their respective allowances: Provided, That the Head of Post shall certify in the claim voucher that their individual allowance is insufficient to cover the rental of one (1) apartment or housing unit at the post. 2.8 In posts where there is a standard practice among landlords to require advance rental or deposit equivalent to at least six (6) months to one (1) year rental of the unit, payment of the advance living quarters allowance sufficient to cover the required amount may be authorized: Provided, That the advance rental shall be paid directly to the landlord by the post: Provided, further, That the claimant shall submit to the Home Office a copy of the pertinent contract of lease duly certified by the Head of Post which should invariably contain a diplomatic clause: Provided, finally, That, in case of recall, reassignment or for any other reason, the unexpired portion of the amount paid shall be duly refunded to the post subject, however, to the condition that in case of force majeure whereby the unexpired portion is not refunded, the claimant shall not be held accountable. 2.9 In places where the new lessees are invariably required at the outset to pay key money for goodwill and in places where lessees are required by the host government, or by customary business practice, to rent a house or apartment unit through an agent and pay the corresponding real estate agent’s fee or commission upon signing of the lease contract, payment of the above may be authorized, chargeable against the account of the Department concerned: Provided, That the Head of Post shall certify in the pertinent cash voucher that such payments are required by the host government or customary at the post and not refunded by the owner to the lessee: Provided, further, That any key money and/or real estate agent’s fee or commission that may be required upon renewal of the lease contract shall likewise be chargeable against the account of the Department concerned. 2.10 In lieu of commutable living quarters allowance, payment of actual rental of quarters occupied by the Head of Post may be authorized, subject to the availability of funds and as may be warranted by the housing situation in the post of assignment. Payment of the utilities shall be in accordance with regulations as may be prescribed by the Secretary of Foreign Affairs.

SECTION 3.0 REPRESENTATION ALLOWANCE 3.1 The allowance per annum shall be granted in accordance with the provisions of

Section 70 of R.A. 7157, as follows: 3.1.1 High Cost Posts From To Chief of Mission (not Head of Post)$4,000.00 $6,000.00 Career Minister 3,000.00 4,500.00 FSO I 2,400.00 3,600.00 FSO II 1,800.00 2,700.00 FSO III 1,200.00 1,800.00 FSO IV 1,200.00 1,800.00 FSSO I 960.00 1,440.00 Other duly authorized 960.00 1,440.00 by the Secretary 3.1.2 Medium Cost Posts From To Chief of Mission (not Head of Post) $2,400.00 $3,600.00 Career Minister 2,400.00 3,600.00 FSO I 1,920.00 2,880.00 FSO II 1,440.00 2,160.00 FSO III 960.00 1,440.00 FSO IV 960.00 1,440.00 FSSO I 720.00 1,080.00 Others duly authorized 720.00 1,080.00 by the Secretary 3.1.3 Low Cost Posts From To Chief of Mission (not Head of Post) $1,800.00 $2,700.00 Career Minister 1,800.00 2,700.00 FSO I 1,400.00 2,100.00 FSO III 1,080.00 1,620.00 FSO III 720.00 1,080.00 FSO IV 720.00 1,080.00 FSSO I 600.00 900.00 Others duly authorized 600.00 900.00 by the Secretary 3.2 Philippine Foreign Service establishments are categorized into high, medium and low-cost posts, as follows: 3.2.1 High-Cost Posts These posts have an Overseas Allowance index in the range of 90 and above.3.2.2 Medium-cost Posts These posts have an Overseas Allowance index in the range of 80-89. 3.2.3 Low-cost Posts These posts have an Overseas Allowance index in the range of 70-79.

SECTION 4.0 FAMILY ALLOWANCE 4.1 An office or employee, other than an alien or casual/contractual employee, who is assigned abroad and whose family resides with him at the post of assignment, shall be entitled to a commutable family allowance equivalent to:

a. US$ 150.00 per month for the dependent spouse b. US$ 75.00 per month for each dependent child not exceeding three (3) in number. 4.2 For this purpose, a dependent child shall mean legitimate, illegitimate, legitimated or legally adopted child who is not over 21 years, unmarried, not gainfully employed, and living with the officer or employee at the post of assignment . 4.3 Unmarried children who are mentally or physically handicapped as attested to by medical certificate, incapable of supporting themselves and living with the officer or employee abroad, shall be considered, for this purpose, regardless of age, as dependents. 4.4 Subject to the prior approval of the Department Head, full family allowance may be paid to any claimant, whose dependent does not live with him at the post of assignment under any of the following circumstances:

a. He is compelled to live alone due to dangerous, notably unhealthy or excessively adverse living conditions, or by other unavoidable circumstances like lack of appropriate, reasonable educational facilities for his children; or b. For the convenience of the Government, he must live alone without any or all the members of his family at his post of assignment; All other meritorious cases may be considered by the Department Head as the circumstances and the exigencies of the Service may warrant.

SECTION 5.0MODE OF PAYMENT 5.1 Effective upon full implementation of this Executive Order, payment of the foregoing allowances may be made either in U.S. dollars or in local currency computed at the prevailing market rate. Henceforth, payment in local currency at collection rate shall be discontinued, without exception.

SECTION 6.0 ADJUSTMENT OF RATES 6.1 The allowances prescribed hereto may be adjusted every two (2) years by the Secretary of Foreign Affairs and the Secretary of Budget and Management, uponapproval of the Office of the President, to respond to substantial changes in the economic climate, subject to the availability of funds. 6.2 In the case of a newly opened post which is not included in this Executive Order, the rates/indices/classification of the nearest post in terms of economic conditions thereat shall apply, pending Executive approval of an appropriate index for that particular post.

SECTION 7.0 EXEMPTION FROM TAXATION 7.1 All allowances, per diems, benefits and the like received by officers and employees of the Foreign Service, in consideration of their service while on assignment abroad, except their basic salaries, shall be exempt from Philippine income tax.

SECTION 8.0 FUNDING REQUIREMENTS 8.1 The amount needed to cover the foregoing adjustments in the foreign service compensation of personnel stationed abroad shall be taken from the appropriations for allowances and from whatever savings realized by the Department or the agency concerned during FYs 2005 and 2006. Thereafter, such amounts as may be necessary shall be included in the budget proposal of the Department or the agency concerned.

SECTION 9.0 SUPPLEMENTARY RULES AND REGULATIONS The supplementary rules and regulations to implement this Executive Order shall be issued by the Secretary of Foreign Affairs.

SECTION 10.0 SEPARABILITY CLAUSE 10.1 If any section or any part of this Executive Order shall be declared illegal or unconstitutional by competent authority, the remaining sections or parts thereof shall not thereby be affected.

SECTION 11.0 REPEALING CLAUSE 11.1 This Executive Order supersedes Executive Order No. 101 dated 15 June 1993. All other orders, rules and regulations or parts thereof inconsistent with the provisions of this Executive Order are hereby repealed or modified accordingly.

SECTION 12.0 EFFECTIVITY DATE This Order shall take effect immediately.

Done in the City of Manila this 5th day of September in the year of Our Lord, two thousand and five.

(SGD.) GLORIA MACAPAGAL-ARROYO

By the President:(SGD.) EDUARDO R. ERMITA Executive Secretary