President Ferdinand R. Marcos Jr. issued Executive Order (EO) No. 73 on 30 October 2024 to update the rates, indices, rules, and regulations governing the payment of various allowances applicable to all national government employees who are assigned overseas.

 

Specifically, EO No. 73 covers the following allowances: Overseas Allowance (OA), Living Quarters Allowance (LQA), Representation Allowance (RA), Family Allowance (FA), and Education Allowance (EA).

 

Said allowances form part of the System of Allowances for the Foreign Service Personnel (FSP), as established under Republic Act (RA) No. 7157, which is also known as the Philippine Foreign Service Act of 1991.

 

 

 

The updated rates and indices resulted from the comprehensive review conducted by the Department of Foreign Affairs (DFA) and the DBM of the allowances under EO No. 156, s. 2013, which was issued more than 10 years ago.

 

Under the new EO, the overall rate of the increase in the base rates for the OA and LQA ranges from 35% to 40%, which will be implemented in four (4) tranches.

 

Meanwhile, the FA of the qualified dependents shall be increased by at least US$50 per month.

 

The Order also approved a one-time uniform increase of 15% in the RA for those eligible to receive such allowance to keep up with the rising prices for products and services required for entertainment, contributions, flowers, and wreaths, etc.

 

EO No. 73 also states that EA may be granted to personnel assigned abroad, whose legal dependent children, not over 18 years old and not exceeding three (3) in number, are enrolled in the primary, elementary, and high school levels.

 

Among the economic indicators considered in the adjustment in the subject allowances for the government’s FSP are the global inflation rates, buying/purchasing power of the US Dollar over time, and the United Nations International Civil Service Commission (UN ICSC) Retail Price Indices (RPI), while remaining mindful of fiscal limitations.

 

For the initial year of implementation, the amount needed to cover the authorized adjustments in the allowances of the qualified FSP shall be taken from the agency savings and/or the Miscellaneous Personnel Benefits Fund (MPBF) under the 2024 General Appropriations Act (GAA), subject to relevant budgeting, accounting, and auditing rules and regulations. Thereafter, funding for the succeeding years shall be provided in the annual GAA, subject to the usual budget preparation process.

 

In the FY 2025 National Expenditure Program, a total of P974.98 million has been earmarked for the purpose under the MPBF.  

 

ika-04 Nobyembre 2024

 

 

Naglabas si Pangulong Ferdinand R. Marcos Jr. ng Executive Order (EO) No. 73 noong ika-30 ng Oktubre 2024 upang i-update ang mga rate, indices, patakaran, at regulasyon na namamahala sa pagbayad ng iba't ibang allowance na naaangkop para sa lahat ng mga empleyado ng national government na naka-assign sa ibang bansa.

 

Saklaw ng EO No. 73 ang mga sumusunod na allowance: Overseas Allowance (OA), Living Quarters Allowance (LQA), Representation Allowance (RA), Family Allowance (FA), at Education Allowance (EA).

 

Ang mga nasabing allowance ay bahagi ng System of Allowances para sa Foreign Service Personnel (FSP), alinsunod sa Republic Act (RA) No. 7157, na kilala rin bilang Philippine Foreign Service Act of 1991.

 

“We welcome and support President Ferdinand R. Marcos Jr.'s decision to adjust the allowances of our foreign service personnel. For too long, the financial support provided to our diplomats has not reflected the complexities and challenges associated with their assignments, not to mention the reality of facing higher cost of living abroad and being away from their families," ani Department of Budget and Management (DBM) Secretary Amenah "Mina" F. Pangandaman.

 

"It is imperative that we continue to support those who serve on the front lines of our diplomatic efforts. This development will surely help boost their morale and enable our foreign service personnel to carry out their duties with greater focus and dedication, especially that it has been a decade since their allowances have been adjusted,” dagdag pa niya.

 

Ang mga na-update na rate at indices ay bunga ng komprehensibong pag-aaral na isinagawa ng Department of Foreign Affairs (DFA) at ng DBM sa mga allowance sa ilalim ng EO No. 156, s. 2013, na inilabas mahigit 10 taon na ang nakalipas.

 

Sa ilalim ng bagong EO, ang kabuuang porsyento ng pagtaas sa mga base rate para sa OA at LQA ay mula 35% hanggang 40%, na ipatutupad sa apat (4) na yugto.

 

Samantala, ang FA ng mga kwalipikadong dependents ay tataasan ng hindi bababa sa US$50 kada buwan.

 

Inaprubahan din ng Order ang isang beses na pantay na pagtaas ng 15% sa RA para sa mga karapat-dapat na makatatanggap ng naturang allowance upang makasabay sa pagtaas ng presyo ng mga produkto at serbisyo na kinakailangan para sa entertainment, kontribusyon, bulaklak, at wreaths, at iba pa.

 

Nakasaad din sa EO No. 73 na maaaring igawad ang EA sa mga personnel na naka-assign sa ibang bansa, na ang mga lehitimong dependent na anak, hindi hihigit sa 18 taong gulang at hindi hihigit sa tatlo (3) ang bilang, ay naka-enroll sa primary, elementarya, at high school levels.

 

Kabilang sa mga economic indicators na isinaalang-alang sa pag-aayos ng mga allowance para sa FSP ng gobyerno ay ang global inflation rates, ang buying/purchasing power ng US Dollar sa paglipas ng panahon, at ang Retail Price Indices (RPI) ng United Nations International Civil Service Commission (UN ICSC), habang isinaalang-alang din ang fiscal limitations.

 

Para sa unang taon ng implementasyon, ang halagang kailangan upang tustusan ang authorized adjustments sa mga allowance ng kwalipikadong FSP ay kukunin mula sa savings ng ahensya at/o sa Miscellaneous Personnel Benefits Fund (MPBF) sa ilalim ng 2024 General Appropriations Act (GAA), alinsunod sa mga kaukulang patakaran sa pagbudget, accounting, at auditing. Pagkatapos nito, ang pondo para sa mga susunod na taon ay ilalaan sa taunang GAA, ayon sa karaniwang proseso ng paghahanda ng budget.

 

Sa FY 2025 National Expenditure Program, nasa kabuuang P974.98 milyon ang inilaan para sa layuning ito sa ilalim ng MPBF.