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FSD 55 - Post Living Allowance

FSD 55 - Post Living Allowance

Scope

Introduction

To assist employees at posts where the cost of living is higher than in Ottawa/Gatineau, the employer provides a non-accountable allowance to compensate for the higher costs of purchasing goods and services at post.

Please refer to the Instructions at the end of this Directive for additional information or greater clarification of certain sections.

Directive

55.1 Application

55.1.1 The deputy head shall authorize a Post Living Allowance (PLA) for each employee serving at a post for which the Post Index is greater than 100, in accordance with Appendix A to this directive, where:

(a) employees shall be compensated for the actual % of salary spent at post, calculated on the basis of their nominal salary, and reflecting the Post Index adjustment;

(b) nominal salary is the mid-point of an employee's salary band, as shown in Appendix A to this directive; and

(c) the Post Index expresses the price differential between the post and Ottawa, as reported to the deputy head on a monthly basis by Statistics Canada. (Note: Refer to Instructions)

55.2 Effective Date

55.2.1 Except where otherwise provided, the PLA shall commence on the first compensation day following the employee's arrival at a post and shall cease on the first compensation day following the employee's final departure from that post.

(Note: Refer to Instructions)

55.2.2 Where an employee is transferred from one post to another, the PLA calculated in accordance with subsection 55.1.1 shall continue until the day of the employee's arrival at the new post except, where:

(a) that day is not a compensation day, in which case the PLA shall continue until the last compensation day immediately prior to the day of arrival at the new post; or

(b) 25 compensation days have elapsed since the employee departed the previous post, in which case continuation of the PLA shall be subject to subsection 55.2.1 or 55.3.1 as applicable.

55.3 Change to Salary

55.3.1 The PLA shall be adjusted to reflect any change in the employee's gross annual salary, including acting pay for the performance of regular duties or for the performance of duties in another position on a temporary basis during an assignment at a post, where such change results in movement to a higher salary band for the purpose of determining the employee's nominal salary.

55.4 Methodology

55.4.1 Appendix A to this directive shall be revised, in accordance with the methodology agreed to by the National Joint Council Committee on Foreign Service Directives:

(a) on June 1st of each year, to reflect annual inflation as reported by Statistics Canada, and

(b) on June 1st following the publication of the results of Statistics Canada's Survey of Household Spending (SHS) conducted on a four-year cycle.

(Note: Refer to Instructions)

55.4.2 A PLA shall be applied by the deputy head on the validity date determined on the basis of statistical information provided on a monthly basis by Statistics Canada.

55.4.3 Changes to the Post Index shall be effective on validity dates as follows:

(a) in the case of changes resulting from a full-scale survey, on the first day of the month next following the month in which Statistics Canada has made its determination;

(b) in the case of devaluation or revaluation of a currency, on the first day of the month next following such change;

(c) in the case of revisions resulting from the monthly review of Post Indexes by Statistics Canada, on the first day of the month next following determination of the requirement for revision.

55.4.4 International retail prices and costs surveys which are required to establish Post Indexes for the purpose of this directive are scheduled by Statistics Canada from time to time. Such surveys are to be completed in a timely manner, subject to operational requirements of the post being surveyed.

55.4.5 Notwithstanding Section 107 of the Public Service Labour Relations Act, a revision to a Post Index (PI) and resultant change in the PLA shall not constitute a change in terms and conditions of employment for an employee subject to the Foreign Service Directives.

55.4.6 At posts where exchange rate information may be deficient with respect to the application of Post Index methodology by Statistics Canada, as agreed to in the National Joint Council Committee on Foreign Service Directives, employees may be required to document the exchange rates received for their purchases of local currency on a monthly basis.

55.5 Temporary Absence

55.5.1 Where an unaccompanied employee is absent from the post on temporary duty, under emergency evacuation conditions or on leave with pay, for more than 25 compensation days, the PLA shall cease on the 26th compensation day and shall resume on the first compensation day following the employee's return to the post.

55.5.2 Where an accompanied employee is absent from the post on temporary duty, under emergency evacuation conditions or on leave with pay, for more than 25 compensation days, the PLA:

(a) shall continue to be paid as long as a dependant remains in the employee's residence at the post with the approval of the deputy head;

(b) shall terminate on the first compensation day following the date of departure of the last of the dependants from the employee's residence at the post, or on the 26th compensation day following the employee's departure, whichever is the later; and

(c) shall resume on the first compensation day following either the return of the employee or of a dependant, with deputy head approval, whichever return date is the earlier.

Instructions

Instructions for 55.1.1(c) - Application

1. Post Indices are determined by Statistics Canada on a monthly basis, and:

(a) are published on the Department of Foreign Affairs and International Trade's website; and

(b) are available on the Statistics Canada website.

2. The deputy head shall apply the Post Index communicated to the department on a monthly basis by Statistics Canada in accordance with the methodology agreed to by the National Joint Council Committee on Foreign Service Directives.

Instruction for 55.2.1 – Effective Date

For purposes of this subsection, "the first compensation day following the employee's final departure from that post", means the first compensation day following the employee's last day on duty at that post.

Instructions for 55.4.1 – Methodology

1. Effective June 1, 2001, the methodology for the determination of the Post Index has been revised to reflect only those expenditures actually incurred at post for the purchase of goods and services. Expenditures for which provision is made elsewhere in the Foreign Service Directives are specifically excluded, as are those expenses which are incurred in Canada. The revised methodology recognizes that employees at different salary levels spend differing percentages of salary for post-related expenses.

2. Effective June 1, 2009, the methodology for the determination of Post Living Allowance has been revised to include an adjustment to recognize annual inflation, as reflected in the Consumer Price Index for the preceding twelve month period ending December 31st.

Appendix A - Annual Post Living Allowance

June 1, 2012

Salary range Midpoint/ nominal salary Adjustment
24,450 25,449 24,950 0.914
25,450 26,449 25,950 0.890
26,450 27,449 26,950 0.868
27,450 28,449 27,950 0.847
28,450 29,449 28,950 0.828
29,450 30,449 29,950 0.810
30,450 31,449 30,950 0.793
31,450 32,449 31,950 0.777
32,450 33,449 32,950 0.763
33,450 34,449 33,950 0.749
34,450 35,449 34,950 0.735
35,450 36,449 35,950 0.723
36,450 37,449 36,950 0.711
37,450 38,449 37,950 0.700
38,450 39,449 38,950 0.690
39,450 40,449 39,950 0.680
40,450 41,449 40,950 0.670
41,450 42,449 41,950 0.661
42,450 43,449 42,950 0.652
43,450 44,449 43,950 0.644
44,450 45,449 44,950 0.636
45,450 46,449 45,950 0.628
46,450 47,449 46,950 0.621
47,450 48,449 47,950 0.614
48,450 49,449 48,950 0.608
49,450 50,449 49,950 0.601
50,450 51,449 50,950 0.595
51,450 52,449 51,950 0.589
52,450 53,449 52,950 0.584
53,450 54,449 53,950 0.578
54,450 55,449 54,950 0.573
55,450 56,449 55,950 0.568
56,450 57,449 56,950 0.563
57,450 58,449 57,950 0.558
58,450 59,449 58,950 0.554
59,450 60,449 59,950 0.549
60,450 61,449 60,950 0.545
61,450 62,449 61,950 0.541
62,450 63,449 62,950 0.537
63,450 64,449 63,950 0.533
64,450 65,449 64,950 0.529
65,450 66,449 65,950 0.525
66,450 67,449 66,950 0.522
67,450 68,449 67,950 0.518
68,450 69,449 68,950 0.515
69,450 70,449 69,950 0.512
70,450 71,449 70,950 0.509
71,450 72,449 71,950 0.506
72,450 73,449 72,950 0.503
73,450 74,449 73,950 0.500
74,450 75,449 74,950 0.497
75,450 76,449 75,950 0.494
76,450 77,449 76,950 0.492
77,450 78,449 77,950 0.489
78,450 79,449 78,950 0.486
79,450 80,449 79,950 0.484
80,450 81,449 80,950 0.482
81,450 82,449 81,950 0.479
82,450 83,449 82,950 0.477
83,450 84,449 83,950 0.475
84,450 85,449 84,950 0.472
85,450 86,449 85,950 0.470
86,450 87,449 86,950 0.468
87,450 88,449 87,950 0.466
88,450 89,449 88,950 0.464
89,450 90,449 89,950 0.462
90,450 91,449 90,950 0.460
91,450 92,449 91,950 0.458
92,450 93,449 92,950 0.457
93,450 94,449 93,950 0.455
94,450 95,449 94,950 0.453
95,450 96,449 95,950 0.451
96,450 97,449 96,950 0.450
97,450 98,449 97,950 0.448
98,450 99,449 98,950 0.446
99,450 99,999 99,725 0.445
100,000 100,000+ 100,000 0.445

Formula for Calculating Allowances

1. Select the salary range in which your annual salary falls.
2. Take the Midpoint/Nominal salary and multiply by the adjoining adjustment.
3. Take the product and multiply by the Post Index, e.g. 130, then divide by 100.
4. Subtract the product of #2 from the result, and you will have your annual Post Living Allowance.
5. In accordance with the methodology agreed to by the National Joint Council Committee on Foreign Service Directives, the maximum midpoint/nominal salary is $100,000 for the purpose of determining Post Living Allowance.

Example 1

  • A salary of $69,700 falls into the salary range of $69,450 to $70,449, of which the Mid-point/Nominal salary is $69,950.
  • Multiply $69,950 by 0.512, which yields $35,814.
  • Multiply $35,814 by a Post Index of 130 (e.g.), then divide by 100.
  • The result is $46,558. Subtract $35,814 and the result is an annual Post Living Allowance of $10,744.

Example 2

  • A salary of $120,350 falls into the salary range of $100,000 to $100,000 plus, of which the Mid-point/Nominal salary is $100,000.
  • Multiply $100,000 by 0.445 which yields $44,500.
  • Multiply $44,500 by a Post Index of 130, then divide by 100.
  • The result is $57,850. Subtract $44,500 and the result is an annual Post Living Allowance of $13,350.

Note:

The Appendix shall be adjusted annually on June 1st in accordance with the methodology agreed to by the National Joint Council Committee on Foreign Service Directives.