Section 5
SEC. 5. Allowances. The President shall establish a system of allowances for foreign services personnel which shall include the following: Oveseas allowance — to adjust take-home pay of foreign service personnel for any changes in 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 doe m which are incurred by officers or employees in the foreign service; Living quarters allowance — to enable personnel to whom those are grander, to live in a manner befitting their representative capacity but not for purposes of augmenting basic salary; Clothing allowance — to compensate for increased cost of clothing incurred by foreign service personnel assigned to posts whose climates are different from that of the Philippines or where unusual circumstances exist; 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; Representation allowance — to enable Chiefs of Missions, special envoys, ministers, permanent delegates or representatives to international bodies, principal office and foreign service officers and ranking staff officers to uphold the prestige of the Republic of the Philippines and otherwise to represent the country with distinction and dignity; Education allowance — to compensate for additional educational cost incurred by officers and employees assigned abroad for legal dependent children not exceeding three in number, who are enrolled in the primary and elementary grades, where free public education and/or English as a medium of instruction is absent; Medical allowance — intended to cover the cost of medical insurance in countries were medical care is unusually expensive, including cost of hospitalization and medical treatment for foreign service personnel and legal dependents living with the officer and employee at the posts as may be approved by the President; 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 in number.