State workers abroad get higher allowances

MANILA, Philippines — The government has increased by up to 40 percent the allowances of state workers assigned abroad to take into consideration global price movements.

The Department of Budget and Management (DBM) is set to implement Executive Order 73 issued by President Marcos mandating the increase in the allowances of foreign service personnel (FSP).

The updated rates, which followed a review by the DBM and the Department of Foreign Affairs (DFA), are being set for the first time in more than 10 years or since 2013.

The increase covers the following allowances: overseas, living quarters, representation, family and education.

The overall increase in the base rates for the overseas allowance and living quarters allowance ranges from 35 to 40 percent, which will be implemented in four tranches.

The family allowance of the qualified dependents will also be increased by at least $50 per month.

Likewise, the EO approved a one-time uniform raise of 15 percent in the representation allowance.

Education allowance may also 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.

Based on the review of the DBM and DFA, the allowance hike took into consideration global inflation rates and the purchasing power of the US dollar over time.

It also looked into the United Nations International Civil Service Commission Retail Price Indices.

Budget Secretary Amenah Pangandaman emphasized that financial support provided to diplomats has not reflected the complexities and challenges associated with their assignments, as well as the higher cost of living abroad.

“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,” Pangandaman said.

For the first year of implementation, the budget will be taken from the Miscellaneous Personnel Benefits Fund (MPBF) under the 2024 General Appropriations Act (GAA).

Funding for the succeeding years will be provided in the annual GAA, subject to the usual budget preparation process.

Next year, P975 million has been earmarked for the purpose under the MPBF.