THE Department of Budget and Management (DBM) said Executive Order (EO) 73 adjusting foreign service personnel allowances is long overdue after the last adjustment in 2013, with the cost of living in overseas posts having risen significantly.
EO 73, issued Oct. 30, updates the rates, indices, rules, and regulations governing the payment of various allowances applicable to all National Government employees assigned overseas.
“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,” Budget Secretary Amenah F. Pangandaman said in a statement.
The executive order covers the overseas allowance (OA), living quarters allowance (LQA), representation allowance, family allowance, and education allowance.
The increase authorized by the EO in the base rates for the OA and LQA ranges from 35% to 40%, which will be implemented in four tranches.
“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 156, s. 2013,” the DBM said.
These are part of the System of Allowances for Foreign Service Personnel under Republic Act 7157 or the Philippine Foreign Service Act of 1991.
The DBM said for the initial year of implementation, the amount needed to cover the authorized adjustments in the allowances of the qualified FSs will be —taken from agency savings and/or the Miscellaneous Personnel Benefits Fund (MPBF) under the 2024 General Appropriations Act (GAA).
“Thereafter, funding for the succeeding years shall be provided in the annual GAA, subject to the usual budget preparation process,” it said.
In the 2025 National Expenditure Program, P974.98 million was earmarked for this purpose under the MPBF. — Aubrey Rose A. Inosante
