The Department of Budget and Management (DBM) has welcomed a recently issued executive order (EO) which updates the rates, indices, rules and regulations for the various allowances of foreign service personnel (FSP).
In a statement, the DBM said for the initial year of implementation, the amount needed to cover the authorized adjustments in the allowances of the qualified FSP will be taken from the agency savings and/or the Miscellaneous Personnel Benefits Fund (MPBF) under the 2024 General Appropriations Act.
Meanwhile, in the 2025 National Expenditure Program, a total of P974.98 million has been earmarked for the purpose under the MPBF.
EO 73 issued on October 30 covers the following allowances: overseas allowance (OA), living quarters allowance (LQA), representation allowance (RA), family allowance (FA) and education allowance (EA).
“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,” DBM Secretary Amenah Pangandaman said.
“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,” she added.
The updated rates and indices resulted from the comprehensive review conducted by the Department of Foreign Affairs and the DBM.
Under the new EO, the overall rate of the increase in the base rates for the OA and LQA ranges from 35 percent to 40 percent, which will be implemented in four tranches.
Meanwhile, the FA of the qualified dependents shall be increased by at least $50 per month.
The EO also approved a one-time uniform increase of 15 percent 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 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 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 Retail Price Indices, while remaining mindful of fiscal limitations.
