Section 63. System of Allowances. —

The President upon recommendation of the Secretary shall recommend to Congress the establishment of a system of allowances for foreign service personnel which shall be subject to periodic review and shall include the following:

1. Overseas allowance. — To adjust take home pay of foreign service personnel for any changes in the cost of living abroad which arise from changes in foreign currency conversion rates, differentials in cost of living between the Philippines and foreign posts, and extraordinary and necessary expenses not otherwise compensated for, which are incurred by officers or employees in the foreign service;

2. Living quarters allowances. — To enable personnel to whom those are granted to live in a manner benefitting their representative capacity but not for purposes of augmenting basic salary;

3. Clothing allowance. — To compensate for increased cost of clothing incurred by foreign service personnel assigned to post whose climates are different from that of the Philippines or where unusual circumstances exist;

4. Post allowance. — To defray unusual expenses incident to the operation and maintenance of an official residence suitable for the chief diplomatic or consular representative of the Philippines at his post;

5. Representation allowance. — The enable chiefs of mission, special envoys, ministers, permanent delegates or representatives to international bodies, principal officers and other ranking diplomatic officers stationed abroad uphold the prestige of the Republic of the Philippines and otherwise to present the country with distinction and dignity;

6. Education allowance. — To compensate for additional educational cost incurred by officers and employees assigned abroad for legal dependent children not exceeding three (3) in number who are enrolled in the primary and elementary grades and high school where free public education is absent;

7. Medical allowance. — Intended to cover the cost of medical insurance in countries where medical care is unusually expensive, including cost of hospitalization and medical treatment for foreign service personnel and legal dependents living with the officers and employees at the post; and

8. Family allowance. — To assist foreign service personnel living with their families at the post of assignment in meeting the incremental expenses arising from foreign assignment computed for the dependent spouse and for unmarried legal minor dependent children not exceeding three (3) in number.