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[LETTER OF IMPLEMENTATION NO. 63, (1978-03-16)](
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[ LETTER OF IMPLEMENTATION NO. 63, March 16, 1978 ]


WHEREAS, Presidential Decree No. 1285 establishes Foreign Service Compensation Flan for staff members of the national government who are stationed abroad;

WHEREAS, Executive Order No. 495 promulgated the general policies applicable to it;

HOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, do hereby approve the following rules and regulations to be observed in the payment of compensation for personnel of the national government stationed abroad:

1.0  Coverage

1.1 This Letter of Implementation shall be applicable exclusively to personnel of the National government whose assignment abroad are approved by the Secretary of Foreign Affairs and whose assimilated ranks are given under the provisions of this Letter.

1.2 The Departments and agencies covered by this Letter of Implementation are the Department of Foreign Affairs, Department of National Defense, Department of Agriculture, Department of Labor, Department of Public Information, Department of Tourism, Department of Finance, National Science Development Board, the Bureau of Internal Revenue, Department of Trade and others as may be duly approved.

2.0 Salary

2.1 The salaries of all other personnel of the Philippine government stationed abroad other than those of the Department of Foreign Affairs whose basic salaries are less than the minimum of the class and grade of their assimilated ranks in accordance with the rates established under P.D. No. 905, shall, subject to availability of funds, be adjusted to the minimum of the class effective January 1, 1978.

2.2 Officers and employees other than those of the Department of Foreign Affairs whose present salaries are equal to or higher, than the minimum of the class and grade of their assimilated ranks shall continue to receive their present salaries: Provided, however, that their overseas allowance shall be adjusted to the extent not to exceed the difference between the total of the minimum rates of the class and grade of their assimilated ranks as established under Presidential Decree No» 905 plus the overseas allowance prescribed for such rank under Letter of Implementation No. 58 less their present salaries.

2.3 Effective January 1, 1978, payment of salaries shall be made in Philippine pesos or its equivalent in foreign currency, computed on the basis of the prevailing exhange rates as established by the Central Bank of the Philippines.

2.4 Officers and employees outside of the Department of Foreign Affairs when recalled to the Hone Office shall be paid in accordance with the national compensation plan for hone office personnel and shall cease to be considered foreign service personnel for purposes of compensation.

3.0 Assimilated Ranks

3.1 For purposes of compensation, the assimilated ranks of agriculture, commercial, finance, revenue, labor, tourism, science, armed forces and their civil attaches and personnel of the Philippine government stationed abroad are as follows:

Name of Agency
Department of Agriculture
Agriculture Attache FSO III
Agriculture Analyst FSSO I
Department of Finance
Office of the Secretary
Revenue Attache FSOII
Bureau of Internal Revenue
Revenue Attache FSO II
Revenue Representative FSO II
Assistant Revenue Attache FSO I
Assistant Revenue Representative FSO I
Department of Labor
Labor Attache FSO I
Department of National Defense
Colonel/Navy Captain FSO I
Lieutenant Colonel/Commander FSO II
Major/Captain/Lieutenant Commander / Lieutenant, Senior Grade     FSO III
First Lieutenant / Lieutenant, Junior Grade FSO IV
Second Lieutenant / Ensign FSO IV
Master Sergeant FSSO I
Technical Sergeant FSSO II
Staff Sergeant FSSO III
Sergeant FSSO III
Corporal FSSE I
Confidential Agent FSSO I
Department of Public Information
Foreign Information Attache II FSSO I
Foreign Information Attache I FSO I
Department of Tourism
Tourism Coordinator FSO I
Tourism Attache FSO II
Public Relations Officer IV FSSO I
Administrative Assistant I FSSO II
Tourism Promotion Assistant FSSO III
Department of Trade
Commercial Attache FSO I
Commercial Attache FSO II
Foreign Trade Analyst FSSO I
Commercial Analyst FSSO II
National Science Development Board
Science Attache FSO I
Overseas Employment Development Board
Overseas Employment Analyst FSSO I
Overseas Employment Researcher FSSO III
Philippines Overseas Construction Board
Commercial Attache FSO II

3.2 Except as the President may appoint, no officer of the Philippine government stationed abroad outside of the Department of Foreign Affairs shall be assigned assimilated rank higher than Foreign Service Officer Class 1.

3.3 The assignment abroad of personnel in any department, bureau or office of the government, including appointments to said positions, shall have the prior clearance of the Secretary of Foreign Affairs.

3.4 The assignment of assimilated rank to personnel of the Philippine Government stationed abroad shall remain with the President who shall act on the basis of the recommendation of the Secretary of Foreign Affairs and the Commissioner of the Budget.

3.5 The assimilated ranks referred to in 3.1 above are for purposes of compensation only and shall not confer diplomatic rankings for purposes of protocol.  Civil Attaches shall always rank after the lowest ranking Foreign Service Officer in the post.

3.6 The assimilated ranks assigned to the above positions whose incumbents are presently stationed abroad and duly accredited by the Department of Foreign Affairs shall be confirmed by the Secretary of Foreign Affairs in the manner and form to be prescribed by him.

4.0 Overseas Allowance

4.1 The following shall be the basic annual rates of overseas allowance for ail officers and enployees of the Philippine government stationed abroad:
a) Chiefs of Mission  
    Heads of Diplomatic Mission
    Others including those assigned as Consul General
b) Career Ministers
c) Foreign Service Officers including those with assimilated rank
    Class 1
    Class II
    Class III
    Class IV
d) Foreign Service Staff Officers
    Class I
    Class II
    Class III
e) Foreign Service Staff Employees
    Class I
$ 4,950
    Class II
    Class III
4.2 Time of Payment

The overseas allowance accrues on the date of departure from Manila and ceases on the date of        arrival in Manila when recalled to the Hone Office; provided, however, that said allowance shall be adjusted in accordance with the DFA index on the date of arrival at the post of assignment.

4.3 DFA Index

4.3.1 The following "DFA Index" as submitted by the permanent Committee created under Section 9 of the aforementioned order, shall serve as the percentage adjustment of the particular post of assignment.  To arrive at the adjusted overseas allowance the rates provided under 4.1 above shall be multiplied with the corresponding DFA index, as follows:
Country and Post
Overseas Allowance
Argentina Buenos Aires    105%
Australia Canberra 125
  Sydney 125
Austria Vienna 155
Belgium Brussels 155
Brazil Brasilia 125
Burma Rangoon   90
Canada Ottawa 125
  Vancouver 125
Cuba Havana    100%
Egypt Cairo 100
France Paris 155
Gabon Libreville 140
Germany West Badgodesberg 160
  Hamburg 160
India New Delhi 100
Indonesia Djakarta 115
  Menado   95
  Tarakan   90
Iran Teheran 125
Israel Tel Aviv 120
Italy Rome (Holy See) 120
Japan Tokyo 160
  Kobe 160
Kenya Nairobi 100
Korea Seoul 110
Laos Vientiance 130
Libya Tripoli 140
Malaysia Kuala Lumpur 115
Mexico Mexico City 100
Netherland The Hague 140
Nigeria Lagos 125
New Zealand Wellington 120
Pakistan Islamabad 100
Papua New Guinea Port Moresby 120
Peoples Republic of China Peking 120
Romania Bucharest 120
Saudi Arabia Jeddah 150
Senegal Dakar 110
Singapore Singapore 115
Spain Madrid 120
Sri Lanka Colombo   90
Switzerland Berne 160
  Geneva 160
Thailand Bankok 115
United Kingdom London 130
United States Agana 120
  San Francisco 120
  Los Angeles 120
  Seattle 115
  New Orleans 115
  Chicago 120
United States Washington, D.C.    120%
  Honolulu 120
  New York 120
U S S R Moscow 135
Vietnam Hanoi 100
Yugoslavia Belgrade 120
Hongkong   120
4.3.2  The Permanent committee shall recommend to the President such adjustments in the DFA index as nay be warranted by changes in the exchange rates and price levels in the affected post cf assignment.

4.3.3  Limitation

4.3.3.l Whenever husband and wife are both assigned in one post, the DFA index herein prescribed shall only be applicable to the overseas allowance of the spouse of the higher rank. The overseas allowance of the spouse of the lower rank shall bear no DPA index0 In r°st of assignment where the DFA index is below 100%, the overseas allowance of both husband and wife shall be based on the corresponding DFA index as presented in 4.3.1 above. The DFA index on overseas allowance shall not be applied while a foreign service officer or employee is enroute to his post of assignment or to Manila.

5.0 Family Allowance

5.1 Definition of Terms

When used in these rules and regulations, the following terns shall mean:

5.1.1 "fanily allowance" means the amount or amounts herein fixed on a per annum rate intended to assist an officer or employee living with his family at the post of assignment in meeting the incremental expenses arising from foreign assignment, computed for the dependent spouse and for unmarried legal minor dependent children but not exceeding three in numberÔÇ×

5.1.1 "dependent spouse" means wife or husband who is legally married to, resides with, and depends upon an officer or employee for support.

5.1.3 "family" means either dependent spouse or dependent children, or both, of an officer or employee, who is a citizen of the Philippines.

5.1.4. "dependent children" means legitimate, legitimated, recognized, or adopted.children who reside With, and wholly depend upon, the officer or employee for support, and where such children are not more than 21 years of age, unmarried, and not gainfully employed or where such children, regardless of age, are not capable of self support because they are mentally or physically defective.

5.2 Person entitled and amount

An officer or employee who is assigned abroad, except alien clerks and employees, whose family resides with his/her in the post of assignment shall be entitled to commutable family allowance equivalent to:

a) US$480 per annum for the dependent spouse and/or
b) US$360 per annum for each dependent child but not exceeding three in number.

The above rates of allowance shall be payable en a monthly basis which may be revised by the President upon recommendation of the Secretary of Foreign Affairs and the Commissioner of the Budget.

5.3 Date of accrual

The family allowance accrues on the respective dates of arrival at the post of assignment of the dependent spouse and children of an officer or employee who join and reside with hiiVher thereat.

5.4 Termination of payment

The payment of the family allowance shall terminate:

5.4.1 upon violation duly verified, of the terms and conditions of the entitlement thereof.
5.4.2 upon departure of the officer or employee for hone assignment.
5.4.3 upon the death of the spouse and attainment of majority age or emancipation of dependent children.
5.4.4 upon departure of spouse and children on authorized return to the Philippines.

5.5 Adjustment

There shall be a reduction of the family allowance in the following circumstances:

5.5.l when dependent spouse becomes gainfully employed, dies, or leaves the conjugal residence in the post without intention to return or upon legal separation.

5.5.2 when the number of qualified dependent children changes by reason of death, emancipation, employment, attainment of majority age or absence from the residence at the post without intention to return.

5.6 Claim certificate

For every first payment of family allowance in the post and whenever there is adjustment due to the changes in family status and/or number of dependents in the post or application of new regulations, a verified certificate, approved by the head of the department, copy attached, shall be accomplished by the claimant to be used as supporting sub-voucher effecting the payment. Subsequent payrolls or cash vouchers shall bear reference to the number and date of the last payroll or cash voucher to which such certificate was attached. Such certificate shall further be supported by certified true copies of (a) marriage certificate (b) birth certificate of the dependent children and (c) proofs of date of arrival and residence of family in the post as attested by the Chief of Mission/Principal Officer.

5.7 Meritorious cases

Subject to the prior personal approval of the Secretary of Foreign Affairs, full allowance based on family status may be paid to any claimant:

5.7.1 who is compelled by reason of dangerous, notably unhealthful or excessively adverse living conditions which render it inadvisable for any or all the members of his family to live with, him at his post; or

5.7.2 who, for the convenience of the Government, must live alone without any or all the members of his family at his post of assignment;

5.7.3 All other meritorious cases as warranted by the circumstances and the exigencies of the service.

6.0 Education Allowance

6.1 Subject to the availability of funds, the Department concerned, may reimburse, upon presentation of receipts and other evidence of payment, matriculation fees and/or tuition fees not exceeding US$1,000 per school year for each child but not exceeding three in number,  of foreign service offices or employees who are citizens of the Philippines and who are enrolled in the primary and elementary grades.

6.2 Non-payment of education expenses

The following shall not be included as educational expenses, However, if included, the herein expenses shall be deducted from the tuition fees and/or matriculation fee:

6.2.1 papers, pencil and other similar materials
6.2.2 school transportation fees
6.2.3 board and lodging
6.2.4 private tutor fees
6.2.5 vocational training or apprenticeships
6.2.6 examination and diploma fees

6.3 Countries excluded

This allowance shall not be granted to children of foreign service personnel who are assigned to the following countries abroad:

6.3.1 United States of America including Guam and Honolulu
6.3.2 Australia
6.3.3 New Zealand
6.3.4 United Kingdom and Ireland
6.3.5 Canada

6.4 Enrolment in the countries mentioned in item 6.3

Corollary to item 6.2 hereof, in cases of foreign service officers or employees assigned in posts where the required facilities for learning are inadequate as determined by the Department of Foreign Affairs, who decide to enrol his/her children in the country above-listed or to any other country of his/her choice, the round trip transportation cost from post of assignment to the place of schooling for each child enrolled in the primary and elementary grades but not exceeding three in number for every school year shall be borne by the Department concerned in an amount not exceeding US$1,000 for each child in lieu of education allowance.

7.0 Representation allowance

7.1 Rates

Subject to availability of funds, the following shall be the annual rates of reimburse-able representation allowance:
High Cost
Medium Cost
Low Cost
a) Chief of Mission (not head of diplomatic mission)
b) Career Minister
c) FSO I
g) ranking FSSO

7.2 List of countries

For purposes of this allowance, the foreign service establishments are hereby categorized into high cost posts, medium cost posts and Low cost posts:

Accordingly, the following classification of posts is hereby made until otherwise revised:
  1. High Cost Posts: Vienna, Brussels, Paris, Libreville, Badeodesbere, Hamburg, Tokyo, Kobe, Tripoli, The Hague, Jeddah, Geneva, Moscow, Berne.

  2. Medium Cost Posts:  Buonos Aires, Canberra, Sydney, Brasilia, Ottawa, Vancouver, Djakarta, Teheran, Tel-Aviv, Rome, Holy See, Seoul, Vientiane, Kuala Lumpur, Lagos, Wellington, Port Moresby, Peking, Bucharest, Dakar, Singapore, Madrid, Bangkok, London, Agana, San Francisco, Los Angeles, Seattle, New Orleans, Chicago, Washington, D.C. Honolulu, New York, Belgrade, Hongkong.

  3. Low Cost Posts: Rangoon, Menado, Tarakan, Colombo, Havana, Cairo, New Delhi, Mexico City, Islamabad, Hanoi, Nairobi, Vientianne.
7.3 Officers entitled

Notwithstanding chiefs of mission and principal officers who are granted representation allowances under existing regulation, the following officers shall be granted reim-burseable representation allowance:

7.3.1 chiefs of mission and career ministers who are not heads of the mission
7.3.2 foreign service officers
7.3.3 ranking foreign service staff officers as authorized by the Department of foreign Affairs.

7.4 Charge d' Affairs

Any foreign service officer acting as charge d' affairs or principal officer shall not be entitled to the allowance during the period he performs said duties temporarily, such eventuality being covered by Section 4 of Executive Order No. 495.

7.5 Accrual and termination

The representation allowance accrues on the first day of the month following the date of arrival at post and ceases on the end of the month of departure when recalled to the Home Office.

7.6 Manner of Payment

Representation allowances may be paid in advance but no earlier than the first day of the month, subject to such rules and regulations as may be approved by the Commission on Audit.

7.7 Expenses chargeable to representation

In addition to the specific purposes set forth in Sec. 12 of Executive Order No, 495, representation allowances nay be utilized, if justified by circumstances and customs at the locality, for such other representation expenses as are allowable under existing regulation.

7.8 Approval of expenditure

Expenses charged to representation must be supported by proper receipts or vouchers if the individual amount of expenditure exceeds US$50 or its equivalent. If proofs of expenses incurred are not immediately available and they exceed US$50, explanations satisfactory to the Commission on Audit shall be submitted and must be attached to the corresponding cash voucher.  Where expenses are incurred for entertainment, the voucher must be accompanied by a statement of the officer concerned or by such proof, e.g., guest list, as nay be shown that the expenses have been made in the public interest.

7.9 Provisions to govern expenditures

Reimbursements or credits to cash advance accounts due to expenditures incurred for representation purposes shall be governed strictly by the foregoing provision of the above Presidential Decree and Executive Order and by applicable auditing and accounting regulations promulgated by the Commission on Audit.

8.0 Living Quarters Allowance

8.1 Subject to availability of funds, the following shall be the basic annual rates of living quarters allowance for officers and employees assigned abroad:
Without Family
With Family
a) Chief of Mission:    
1. Head of Mission
2. Other including those assigned as Consul General
b) Career Minister
c) FSO I


For the purpose of this allowance, foreign service officers and employees are hereby classified as follows:

8.2.1  With family

Foreign service officers or employees, who are living with their spouse and dependent children defined in item 5.1 at the post of assignment or where said officer or employee lives with two or more dependents.

8.2.2  Without family

Upon assignment to the post, the officer or employee is single, widower or legally separated with only one dependent or married with no dependent.

8.3 Personnel occupying quarters on lease-purchase terms

Foreign service personnel entitled to living quarters allowance occupying quarters on lease-purchase terns shall be entitled to the adjusted quarters allowance equal to 50% of the rental value of the quarters: provided, that it does not exceed the allowable allowance. The Chief of Mission or Principal Officer, as the case maybe, jointly with the Administrative Officer shall certify under their official oath the rental value on the face of the cash voucher.

8.4 Adjustment

The living quarters allowance shall be adjusted in accordance with the following: DFA index on housing until otherwise revised:

Country and Post
Argentina Buenos Aires
Australia Canberra
Austria Vienna
Belgium Brussels
Brazil Brasilia
Burma Rangoon
Canada Ottawa
Cuba Havana
Egypt Cairo
France Paris
Gabon Libreville
Germany West Badgodesberg
India New Delhi
Indonesia Djakarta
Iran Teheran
Israel Tel-Aviv
Italy Rome (Holy See)
Japan Tokyo
Kenya Nairobi
Laos Vientiance
Libya Tripoli
Malaysia Kuala Lumpur
Mexico Mexico City
Netherland The Hague
Nigeria Lagos
New Zealand Wellington
Pakistan Islamabad
Papua New Guinea Port Moresby
Peoples Republic of China Peking
Romania Bucharest
Saudi Arabia Jeddah
Senegal Dakar
Spain Madrid
South Korea Seoul
Sri Lanka Colombo
Switzerland Berne
Thailand Bankok
United Kingdom London
United States of America Agana
  Los Angeles
  New Orleans
  New York
  San Francisco
  Washington, D.C.
U S S R Moscow
Vietnam Hanoi
Yugoslavia Belgrade
8.5 Personnel as joint-lessee

In cases where, because of acute housing shortage or other circumstances justifying two or more foreign service personnel to rent one quarters jointly, and provided the same is previously reported to the Department concerned, the personnel concerned shall be entitled to receive only 50% of their commutable living quarters allowance, from the first day of the month following their living in the same rented quarters.

8.5.1 Certification

A certificate to item 8.5 duly verified by the head of office, shall be attached to the first voucher covering payment of the 50% living quarters allowance and subsequent vouchers shall make reference to the number and date of said first payment.

8.6 Accrual and termination

The living quarters allowance accrues on the first day of the month following the date of arrival at post and ceases on the end of the month following departure therefrom.  No per diems shall be paid in lieu of living quarters allowance.

8.7 Exceptions

Provisions to the contrary notwithstanding, the Department head concerned nay authorize the payment of actual rental of quarters occupied by foreign service personnel assigned abroad in lieu of quarters allowance as may be warranted by the housing situation in the post of assignment, subject to availability of funds.

9.0 Clothing Allowance

9.1  Rates

Subject to availability of funds, the following shall be the annual rates of clothing allowance which varies in accordance with the climatic conditions prevailing in the post of assignment:

Tropical Zone
Temperate Zone
a) Chief of Mission    
    Principle Officers

b) Foreign Service Officers

c) Foreign Service Staff

    Officers and Employees
9.2  For purposes of this allowance, countries falling under Temperate Zone, are those which have four seasons, namely, summer, autumn, winter and spring, while those falling under the Tropical Zone, are countries which have only two seasons namely, dry and wet seasons:

10.0 Medical Allowance

10.1 Rates

Foreign Service personnel and their dependent spouse and legal children not exceeding three in number as defined in 5.l.2 and 5.1.4 hereof may be required by the Department Head concerned, to subscribe to a medical insurance scheme available in the host country.  Subject to availability of funds, twenty-five percent (25%) of the corresponding premiums shall be payable by the personnel concerned and seventy-five percent (75%) thereof shall be borne by the government as its contribution.

10.2 Countries without medical insurance scheme

In the event of illness or injury requiring hospitalization of a foreign service personnel, not the result of vicious habits, intemperance or misconduct on his part, the government shall, subject to availability of funds, reimburse the cost of medical expenses provided that no medical insurance scheme is available in the post of assignment.

10.3 Medical Expenses

The medical expenses shall cover the cost of hospitalization and/or payment of the services of the attending physician, including travel expenses to and from the hospital or clinic and such other incidental expenses as nay be incurred in connection with such hospitalization treatment but not to exceed the amount of US$1,000.  If the foreign service personnel is too ill to travel un-attended, the travel expenses of the attendant shall also be paid by the Department concerned.

10.4 Dependents covered

Only legal dependents of those mentioned in 10.1 hereof living with the officer or employee at the post shall be entitled to the medical allowance.

11.0 Foreign service officers and employees on Official consultation or detail in Manila

Foreign service officers and employees regularly assigned abroad including Chiefs of Mission who travel to Manila on official consultation or detail shall, for the duration of the stay, be entitled to the same per diem rates prevailing for other officials and employees of the Philippine Government as recommended by the Travel Rates Committee and approved by the President, They shall be entitled to overseas allowance but not beyond thirty (30) days from date of arrival in Manila unless otherwise personally approved by the President.

12.0 Foreign service officers and employees called to the Home Office.

12.1  Foreign service officer and employees who are recalled to the Home Office shall not be  entitled to per diem, provisions of existing regulations to the contrary notwithstanding.

13.0 Taxation

13.1   Pursuant to Section 9 of Presidential Decree No. 1285, all allowances and privileges except basic salary are hereby declared as being paid to and received by the personnel concerned in furtherance of the interests of the Republic of the Philippines.

14.0 Availability of Funds

14.1 Implementation of rates of compensation, allowances and fringe benefits shall be subject to availability of funds and the programmed, expenditure of the agency concerned, net of reserves.

15.0 Responsibility of the Head of Agency

15.1  The Head of Department concerned shall be held personally liable for any payment which is not in accordance with this Letter.

16.0 Supplementary Regulations

16.1   The Secretary of Foreign Affairs and the Commissioner of the Budget shall promulgate such rules and regulations as may be necessary to supplement this Letter.

17.0  Saving Clause

17.1 Notwithstanding any provisions of this Letter, nobody shall suffer any reduction in compensation with the implementation of this new system of foreign service compensation.

18.0  Effectivity

18.1 This Order shall take effect as of January 1, 1978.

Done in the city of Manila, this 16th day of March, in the year of Our Lord nineteen hundred and seventy-eight.

Republic of the Philippines
  By the President:    
  (Sgd.) JACOBO C. CLAVE    
  Presidential Executive Assistant