MALACAÑANG
Manila

LETTER OF IMPLEMENTATION NO. 63

RELATIVE TO THE PAYMENT OF COMPENSATION IN THE FOREIGN SERVICE

WHEREAS, Presidential Decree No. 1285 establishes the Foreign

Service Compensation Plan for staff members of the national government who are stationed abroad;

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

NOW, 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 e:ctent 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 Home Office shall be paid in accordance with the national compensation plan for home 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	No. of Pos	Designation	Assimilated Rank
Department of Agriculture	4	Agriculture Attache	FSO III
Department of Finance	4	Agriculture Analyst	FSSO I
Office of the Secretary Bureau of Internal Revenue	15	Revenue Attache	FSO II
	5	Revenue Attache	FSO I
	9	Revenue Representative	FSO I
	4	Assistant Revenue Representative	FSO I
	4	Assistant Revenue Representative	FSO I
Department of Labor	16	Labor Attache	FSO I
Department of National Defense	13	Colonel/Nay Captain	FSO I
	3	Lieutenant Colonel/Commander	FSO II
	4	Major/Captain/Lieutenant Commander/Lieutenant, Senior Grade	FSO III
	1	First Lieutenant/ Lieutenant, Junior Grade	FSO IV
	1	Second Lieutenant/Ensign	FSO IV
	3	Master Sergeant	FSSO I
	4	Technical Sergeant	FSSO II
	1	Staff Sergeant	FSSO III
	3	Sergeant	FSSO III
	1	Corporal	FSSE I
	1	Confidential Agent	FSSO I
Department of Public Information	17	Foreign Information Attache II	FSSO I
	3	Foreign Information Attache I	FSO II
Department of Tourism	2	Tourism Coordinator	FSO I
	12	Tourism Attache	FSO II
	14	Public Relations Officer IV	FSSO I
	13	Administrative Assistant I	FSSO II
	5	Tourism Promotion Assistant	FSSO III
Department of Trade	46	Commercial Attache	FSO I
	26	Commercial Attache	FSO II
	52	Foreign Trade Analyst	FSSO I
	1	Commercial Analyst	FSSO II
National Science Development Board Overseas Employment	4	Science Attache	FSO I
Development Board	4	Overseas Employment Researcher	FSSO I
	8	Overseas Employment Researcher	FSSO III
Philippine Overseas Construction Board	2	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 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.

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.

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.

3.4 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.

3.5 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.

3.6 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.

4.0 Overseas Allowance

4.1 The following shall be the basic annual rates of overseas allowance for all officers and employees of the Philippine government stationed abroad:

Rank	Rates
a) Chiefs of Mission
Heads of Diplomatic Mission	$19,700
Others including those assigned as Consul General	17,500
b) Career Ministers	14,400
c) Foreign Service Officers including those with assimilated rank
Class I	12,150
Class II	10,800
Class III	8,900
Class IV	7,800
d) Foreign Service Staff Officers
Class I	7,000
Class II	6,350
Class III	5,600
e) Foreign Service Staff Employees
Class I	$4,950
Class II	4,300
Class III	3,750

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 Home 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 afore-mentioned 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	Bagodesberg	160
	Hanburg	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	Vientiane	130
Libya	Tripoli	140
Malaysia	Kuala Lumpur	115
Mexico	Mexico City	100
Netherlands	The Hague	140
Nigeria	Lago	125
New Zealand	Wellington	120
Pakistan	Islamabad	100
Papua New Guinea	Port Moresly	120
Peoples Republic of China	Peking	120
Romania	Bucharest	120
Saudi Arabia	Jeddah	110
Senegal	Dakar	110
Singapore	Singapore	115
Spain	Madrid	120
Sri Lanka	Colombo	90
Switzerland	Berne	160
		160
Thailand	Bangkok	115
United Kingdom	London	130
United States	Agana	120
	San Francisco	120
	Lost 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
Hong Kong		120

4.3.3 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 of assignment.

4.3.3 Limitation

4.3.3.1 Whenever husband and wife are both assigned in one post, the DFA index herein proscribed 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 DFA index. In post of assignment where the DFA index is below 100%, the overseas allowance of both husband and wife shall be based of the corresponding DFA index as presented in 4.3.1 above.

4.3.3.2 The DPA 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 “family 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 un-married legal minor dependent children but not exceeding three in number.

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 on 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 him/her 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:

5.5.2 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 noting
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 reimburseable representation allowance:

Position	Rates
	High Cost	Medium Cost	Low Cost
a) Chief of Mission (not head of diplomatic mission)	$3,000	$2,400	$1,800
b) Career Minister	3,000	2,400	1,800
c) FSO I	2,400	1,920	1,400
d) FSO II	2,800	1,440	1,080
e) FSO III	1,200	960	720
f) FSO IV	1,200	960	720
g) ranking FSSO	960	720	600

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:

a) High Cost Posts: Vienna, Brussels, Paris, Libreville, Badgodesberg, Hamburg, Tokyo, Kobe, Tripoli, The Hague, Jeddah, Geneva, Moscow, Berne.

b) Medium Cost Posts:  Buenos 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.

c) Low Cost Posts: Rangbon, 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 reimburseable 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 Charged Affaires

Any foreign service officer acting as charged 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 Hone 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 nay 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 regulations.

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	US$9,900	US$10,260
2. Others including those assigned as Consul General	8,250	8,610
b) Career Minister	5,520	5,880
c) FSO	4,860	5,220
FSO II	4,580	4,940
FSO III	3,900	4,260
FSO IV	3,510	3,870
d) FSSO I	3,000	3,360
FSSO II	2,800	3,160
FSSO III	2,620	2,980
e) FSSE I- III	2,450	2,810

8.2 Family status

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 none 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 allowance occupying quarters on lease-purchase terms shall be entitled to the adjusted quarters 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		Overseas Allowance
Argentina	Buenos Aires	100%
Australia	Canberra	130
	Sydney	130
Austria	Vienna	160
Belgium	Brussels	160
Brazil	Brasilia	140
Burma	Rangoon	80
Canada	Ottawa	130
	Vancouver	125
Cuba	Havana	100
Egypt	Cairo	120
France	Paris	160
Gabon	Libreville	160
Germany West	Bagodesberg	160
	Hanburg	160
Hongkong		130
India	New Delhi	90
Indonesia	Djakarta	130
	Menado	90
	Tarakan	90
Iran	Teheran	150
Israel	Tel Aviv	130
Italy	Rome (inc. Holy See)	120
Japan	Tokyo	160
	Kobe	160
Kenya	Nairobi	130
Laos	Vientiane	80
Libya	Tripoli	150
Malaysia	Kuala Lumpur	120
Mexico	Mexico City	100
Netherlands	The Hague	150
Nigeria	Lago	140
New Zealand	Wellington	130
Pakistan	Islamabad	110
Papua New Guinea	Port Moresly	130
Peoples Republic of China	Peking	110
Romania	Bucharest	130
Saudi Arabia	Jeddah	140
Senegal	Dakar	120
Singapore		120
Spain	Madrid	120
South Korea	Seoul	120
Sri Lanka	Colombo	90
Switzerland	Berne	160
	Genevea	160
Thailand	Bangkok	120
United Kingdom	London	150
United States	Agana	120
	Chicago	120
	Honolulu	120
	Los Angeles	120
	New Orleans	120
	New York	130
United States	San Francisco	120
	Seattle	120
	Washington, D.C	130
U S S R	Moscow	130
Vietnam	Hanoi	150
Yugoslavia	Belgrade	150

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 sane 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 may 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:

	Rates
Rank	Tropical Zone	Temperate Zone
a) Chiefs of Mission Principal Officers	$400	$500
b) Foreign Service Officers	300	400
c) Foreign Service Staff Officers and Employees	200	250

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 5.1.2, and 5.1.4 hereof may be required by the Department Head concerned, to subscribe to .a medieval 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 sane 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 nay 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 fake 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.

(SGD.) FERDINAND E. MARCOS
Republic of the Philippines

By the President:

(SGD.) JACOBO C. CLAVE
Presidential Executive Assistant

Source: Presidential Management Staff