FSD 56 - Foreign service incentive allowances

Introduction

Foreign service incentive allowances consist of two tax-free allowances provided as incentives to foreign service.

The foreign service premium is provided as an incentive to foreign service and as such recognizes that there are disutilities and disincentives, some of which may be financial, resulting from service outside Canada. The premium varies according to the employee's family size and service outside Canada and is payable to employees to whom the Foreign Service Directives apply in accordance with FSD 3 - Application and FSD 8 - Short-term assignments outside Canada.

The post specific allowance is a non-accountable travel allowance designed to assist employees in travelling from post and reflects 80% of return full (Y) economy air fare between the employee's post and the headquarters city or where a Y fare is not available for a specific post, 100% of the Y2 fare. This allowance is only available when an employee is not subject to the provisions of FSD 46 - Post leave/option.

Directive 56

56.01 Unless otherwise indicated, this directive applies to career foreign service employees and to foreign assignment employees.

Instruction

The provisions of Section 56.01 also apply to employees on assignment in accordance with FSD 8 - Short-term assignments outside Canada.

Foreign Service Premium / Transitional Provisions

56.02

(a) In accordance with this directive, the deputy head shall authorize the payment of a foreign service premium to an employee on the basis of the employee's family size and service outside Canada, calculated in accordance with:

(i) Appendix A for employees who arrive at post on or after April 1, 2009, and

(ii) Appendix C for employees at post prior to April 1, 2009, until the rate under Appendix A is equal to or greater than the rate under Appendix C, or the completion of posting, excluding any extension, which ever comes earlier.

(b) Appendices A and C to this directive shall be updated on April 1st, 2009, and annually thereafter on April 1st, to adjust rates of foreign service premium in accordance with the methodology agreed to in the National Joint Council Committee on Foreign Service Directives, and published on the Department of Foreign Affairs and International Trade's website.

(c) An employee serving at a post who is receiving a foreign service premium in accordance with Appendix C, shall not receive a lesser premium on April 1st than that which would have been payable on the basis of the applicable salary group in effect on the preceding March 31st.

Step Progression

56.03

(a) In determining the appropriate step of foreign service premium, an employee shall receive credit for service outside Canada and progression shall be based on points earned for such service.

(b) On initial assignment outside Canada, an employee shall receive the applicable Step I rate of foreign service premium.

(c) Subject to Section 56.05, an employee shall receive:

(i) the Step II rate of foreign service premium upon accumulation of 24 points;

(ii) the Step III rate of foreign service premium upon accumulation of 60 points;

(iii) the Step IV rate of foreign service premium upon accumulation of 96 points;

(iv) the Step V rate of foreign service premium upon accumulation of 132 points; and

(v) the Step VI rate of foreign service premium upon accumulation of 168 points.

Calculation of Points

56.04

(a) Points shall be calculated for service outside Canada:

(i) before July 1, 1975, for foreign assignment employees, at the rate of one point per month of service from October 1, 1972, or from January 1, 1973 for those employees subject to the Foreign Service Regulations on December 31, 1972,

(ii) before July 1, 1975, for career foreign service employees, at the rate of one point per month of service,

(iii) between July 1, 1975, and April 1, 1979, for all employees, at the rate of:

(A) 1 point per month of service at posts which were not listed in the Appendix to FSD 58 (1975),

(B) 1.25 points per month of service at posts which were rated at Levels I and II in the Appendix to FSD 58 (1975), and

(C) 1.5 points per month of service at posts which were rated at Levels III and IV in the Appendix to FSD 58 (1975),

(iv) effective April 1, 1979, for all employees, at the rate of one point per month of service.

(b) For the purpose of calculating points under this directive, an employee shall be deemed to have a completed month of service where there is an entitlement to ten compensation days of foreign service premium in a calendar month, including foreign service premium which is part of a maternity or parental allowance as referred to in FSD 69.07, except that during a cross-posting an employee cannot accumulate credits on the basis of two periods of ten compensation days within the same calendar month.

(c) Subject to Section 56.05, points accumulated for service outside Canada are portable and non-lapsing. Consequently, progression from one step to the next higher step may occur in mid-tour.

(d) In determining the rate of foreign service premium under this directive, an employee shall receive credit for foreign service premium points earned under the Military Foreign Service Instructions (MFSI). This provision extends to public service employees with service under the MFSI and to members of the Canadian Forces where such service qualifies as continuous employment in the public service for leave and severance pay purposes.

Termination of Premium

56.05

(a) Notwithstanding Section 56.03, no premium is payable, without the approval of the deputy head, to an employee who has served seven consecutive years at the same post.

(b) Notwithstanding Section 56.04(a), where payment of the premium has been terminated in accordance with Section 56.05(a), the employee shall cease to accumulate points for service outside Canada during the period in which payment of the premium is not authorized.

Instruction

Where an exception is made to Section 56.05, a report shall be made to the Treasury Board Secretariat outlining the program-related circumstances which justify this exception.

Premium Rates

56.06 Subject to Sections 56.08 and 56.09, an employee shall be entitled to a foreign service premium:

(a) at the accompanied by one dependant rate, only if:

(i) one dependant resides with the employee at the post, or

(ii) the employee is a single parent and has a child who is a dependent student as defined in FSD 2.01(l);

(b) at the accompanied by two or more dependants rates, only if two or more dependants reside with the employee at the post and at least one of the dependants is a child;

where for purposes of this directive:

(c) single parent (parent célibataire) is the parent in a family unit comprising the employee and a child;

(d) child (enfant) refers to a dependant as defined in FSD 2.01(k)(ii); and

(e) reside with the employee at the post (partage la résidence du fonctionnaire à la mission) means that the dependant resides with the employee at the post for at least 8 months of any consecutive 12-month period;

Employee-couples

(f)

(i) each employee of an employee-couple who are assigned to the same post shall receive the unaccompanied rate of foreign service premium except that, where a dependant resides with the employee-couple at the post, one employee shall be considered as unaccompanied and the other employee as accompanied at the appropriate dependant rate, and

(ii) each employee of an employee-couple who are assigned to different posts shall receive the unaccompanied rate of foreign service premium except that, where a dependant resides with the employee, the employee shall be considered as accompanied at the appropriate dependant rate;

Start and End of Premium

56.07 Except where otherwise provided, an employee's entitlement to a foreign service premium shall:

(a) commence on the first compensation day following the employee's arrival at the post; and

(b) cease on the first compensation day following the employee's last day on duty at the post,

unless an employee is cross-posted from one post to another post, in which case the foreign service premium shall continue without interruption.

Change in Family Size

56.08 Where an employee is in receipt of a foreign service premium in accordance with Section 56.02, the premium shall be adjusted to reflect a change in family size where a dependant:

(a) takes up permanent residence with the employee at the post; or

(b) ceases to be a dependant or takes up a separate domicile; or

(c) departs the post permanently in advance of an employee;

in which case the change shall be effective on the first compensation day following the event except that, where a dependant has left the employee's post in advance of a cross-posting, such departure shall be considered as a temporary absence and the provisions of Section 56.09 shall apply.

Temporary absence of dependant

56.09 Where an employee receives an accompanied rate of foreign service premium in accordance with Section 56.06, the premium shall be adjusted to reflect a change in family size where a dependant is temporarily absent from the employee's post for more than 25 compensation days. The change will be effective on the 26th compensation day and shall resume on the first compensation day following the return of the dependant to the employee's residence, except that:

(a) this section shall not apply to an employee who is in receipt of the "accompanied by one dependant" rate of premium where the dependant is a child under Section 56.06(a)(ii); and

(b) in cases of absence of a dependant from the employee's post, the deputy head may authorize continued payment of the foreign service premium at the appropriate accompanied rate for a period of up to six months from the date of departure of the dependant, where, in the deputy head's opinion, such continuation will facilitate operational objectives. Such cases shall be reported to the appropriate foreign service interdepartmental co-ordinating committee.

Post Specific Allowance

56.10

(a) Subject to the provisions of Section 56.11, an employee is entitled to a non-accountable post specific allowance, payable on a monthly basis to reflect one-twelfth of the annual rate, in accordance with Appendix B to this directive.

(b) Appendix B to this directive shall be updated annually on June 1st, to reflect 80% of return full (Y ) economy air fare from the post to the employee's headquarters city. Where a Y fare is not available for a specific post, 100% of the Y2 fare shall be used for that post.

(c) The intent of this allowance is to assist an employee with miscellaneous travel requirements, which are a consequence of foreign service, formerly provided under FSD 45 - Foreign service travel of the 1993 and 1997 Foreign Service Directives. There is no requirement for employees to maintain or provide proof of travel.

Instruction

The Deputy Minister of Foreign Affairs has been authorized to revise Appendix B to this directive, on the recommendation of the appropriate foreign service interdepartmental co-ordinating committee, in accordance with the methodology agreed to in the National Joint Council Committee on Foreign Service Directives.

56.11

The post specific allowance becomes payable:

(a) on June 1, 2001, for employees on posting who have not elected for the provisions of FSD 46 - Post leave/option, and/or who are not subject to the transitional provisions of FSD 46.05;

(b) on or after June 1, 2001, as applicable, for employees who arrive at post on or after this date and who have not elected for the provisions of FSD 46 - Post leave/option; or

(c) on such date as may be determined by the deputy head, subsequent to June 1, 2001, for employees who are on posting and are subject to the provisions of FSD 46.03(b) of FSD 46 - Post leave/option, having accumulated 40 days of post leave credits,

except that,

(d) following receipt of a Posting Confirmation Form (or equivalent) and prior to arrival at post, an employee may request an advance of one year's post specific allowance, for the purpose of a spousal job-hunting trip at the post, or for making arrangements at post for education of one or more accompanying dependants.

Instructions

1. No post specific allowance is payable when an employee is subject to the provisions of FSD 46 - Post leave/option. Unless an employee makes an election for post leave (or is subject to the transitional provisions of FSD 46), the post specific allowance will automatically apply, and will continue to apply until the employee requests a change.

2. An employee may elect for post leave, in accordance with FSD 46 - Post leave/option, in lieu of the post specific allowance, at any time after the commencement of payment of the post specific allowance, by advising their FSD administrator by e-mail 2 months in advance of the desired change. Employees may change their election no more than once per year.

3. Where an advance has been authorized in accordance with Section 56.11(d), the employee will be required to provide evidence that the allowance was used for the purpose it was issued.

Appendix A - Foreign Service Premium

April 1, 2011

UNACCOMPANIED

Steps

I

II

III

IV

V

VI

Points

(0-23)

(24-59)

(60-95)

(96-131)

(132-167)

(168+)

Premium

6,385

9,576

12,450

13,694

15,064

16,269

ACCOMPANIED BY ONE DEPENDANT

Steps

I

II

III

IV

V

VI

Points

(0-23)

(24-59)

(60-95)

(96-131)

(132-167)

(168+)

Premium

8,938

13,407

17,430

19,173

21,090

22,777

ACCOMPANIED BY TWO DEPENDANTS

Steps

I

II

III

IV

V

VI

Points

(0-23)

(24-59)

(60-95)

(96-131)

(132-167)

(168+)

Premium

10,726

16,089

20,916

23,007

25,308

27,333

ACCOMPANIED BY THREE DEPENDANTS

Steps

I

II

III

IV

V

VI

Points

(0-23)

(24-59)

(60-95)

(96-131)

(132-167)

(168+)

Premium

11,262

16,892

21,962

24,157

26,573

28,699

ACCOMPANIED BY FOUR OR MORE DEPENDANTS

Steps

I

II

III

IV

V

VI

Points

(0-23)

(24-59)

(60-95)

(96-131)

(132-167)

(168+)

Premium

11,825

17,737

23,059

25,366

27,902

30,135

Appendix B - Post Specific Allowance (PSA)

The Table below reflects the PSA rates effective June 1, 2011. (Canadian Dollars Per Annum).

Post
(alphabetical order)

PSA
2011

Abidjan, Côte d'Ivoire

5,311

Abu Dhabi, United Arab Emirates

3,788

Abuja, Nigeria

4,104

Accra, Ghana

3,899

Addis Ababa, Ethiopia

3,742

Algiers, Algeria

3,838

Amman, Jordan

3,922

Anchorage, Alaska, USA

3,681

Ankara, Turkey

5,546

Astana, Kazakhstan

3,631*

Athens, Greece

4,749

Atlanta, Georgia, USA

2,670

Auckland, New Zealand

6,566

Baghdad, Iraq

3,922

Bamako, Mali

5,221

Bandar Seri Begawan, Brunei Darussalam

6,465

Bangkok, Thailand

5,376

Beijing, China

5,392

Beirut, Lebanon

3,278

Belgrade, Serbia

4,909

Berlin, Germany

4,422

Berne, Switzerland

6,798

Bogotá, Colombia

1,599

Boston, Massachusetts, USA

3,049

Brasilia, Brazil

3,799

Bratislava, Slovakia

6,776

Bridgetown, Barbados

1,724

Brussels, Belgium

5,078

Bucharest, Romania

4,819

Budapest, Hungary

4,687

Buenos Aires, Argentina

3,630

Buffalo, New York, USA

1,491

Cairo, Egypt

2,667

Canberra, Australia

8,651

Caracas, Venezuela

2,197

Chandigarh, India

4,957

Chennai, India

4,822

Chicago, Illinois, USA

2,838

Chongqing, China

5,873

Colombo, Sri Lanka

5,477

Colorado Springs, Colorado, USA

1,993

Copenhagen, Denmark

5,269

Dakar, Senegal

5,052

Dallas, Texas, USA

3,238

Damascus, Syria

3,835

Dar es Salaam, Tanzania

4,135*

Denver, Colorado, USA

2,728

Detroit, Michigan, USA

1,524

Dhaka, Bangladesh

5,486

Doha, Qatar

3,883

Dubai, United Arab Emirates

3,805

Dublin, Ireland

4,544

Düsseldorf, Germany

4,424

Geneva, Switzerland

6,474

Georgetown, Guyana

5,513

Guadalajara, Mexico

2,023

Guangzhou, China

5,890

Guatemala, Guatemala

1,446

Hague, Netherlands

4,336

Hamburg, Germany

3,724

Hanoi, Vietnam

5,370

Harare, Zimbabwe

4,161

Havana, Cuba

1,411

Helsinki, Finland

5,605

Ho Chi Minh City, Vietnam

5,373

Hong Kong, China

5,217

Houston, Texas, USA

2,615

Islamabad, Pakistan

4,117

Istanbul, Turkey

5,237

Jakarta, Indonesia

5,272

Johannesburg, South Africa

4,525

Juba, Sudan

4,322

Kabul, Afghanistan

4,224

Kandahar, Afghanistan

4,564

Kathmandu, Nepal

6,014

Khartoum, Sudan

6,086

Kigali, Rwanda

3,149

Kingston, Jamaica

1,391

Kinshasa, Democratic Republic of Congo

5,158

Kuala Lumpur, Malaysia

5,576

Kuwait City, Kuwait

3,653

Kyiv, Ukraine

4,473

La Paz, Bolivia

3,806

Lagos, Nigeria

4,382

Lilongwe, Malawi

5,439

Lima, Peru

2,622

Lisbon, Portugal

5,940

London, England

3,072

Los Angeles, California, USA

3,209

Lusaka, Zambia

4,042

Madrid, Spain

5,080

Managua, Nicaragua

1,535

Manila, Philippines

5,272

Maputo, Mozambique

3,610

Mexico City, Mexico

1,806

Miami, Florida, USA

2,507

Minneapolis, Minnesota, USA

2,129

Monterrey, Mexico

1,914

Montevideo, Uruguay

3,644

Moscow, Russia

5,608

Mumbai, India

4,969

Munich, Germany

4,428

Nagoya, Japan

9,260

Nairobi, Kenya

4,712

New Delhi, India

4,793

New York, New York, USA

2,773

Niamey, Niger

5,438

Oslo, Norway

5,495

Ouagadougou, Burkina Faso

5,301

Palo Alto, California, USA

2,383

Panama City, Panama

1,371

Paris, France

4,948

Philadelphia, Pennsylvania, USA

2,198

Phnom Penh, Cambodia

5,360

Phoenix, Arizona, USA

3,362

Port-au-Prince, Haiti

1,677

Port of Spain, Trinidad and Tobago

2,076

Prague, Czech Republic

6,519

Pretoria, South Africa

4,525

Quito, Ecuador

1,812

Rabat, Morocco

4,337

Raleigh-Durham, North Carolina, USA

1,962

Ramallah, West Bank

2,867

Reykjavik, Iceland

1,734

Riga, Latvia

4,765

Rio de Janeiro, Brazil

3,461

Riyadh, Saudi Arabia

3,411

Rome, Italy

3,859

San Diego, California, USA

2,933

San Francisco, California, USA

4,772

San José, Costa Rica

1,933

San José, California, USA

2,355

San Salvador, El Salvador

1,522

Santiago, Chile

4,011

Santo Domingo, Dominican Republic

1,534

São Paulo, Brazil

3,416

Seattle, Washington, USA

3,978

Seoul, Republic of Korea

3,764

Shanghai, China

5,337

Singapore, Singapore

5,972

Stockholm, Sweden

5,110

Sydney, Australia, USA

8,300

Taipei, Taiwan

5,840

Tegucigalpa, Honduras

1,499

Tehran, Iran

5,047

Tel Aviv, Israel

2,784

Tokyo, Japan

8,599

Tripoli, Libya

3,053

Tucson, Arizona, USA

2,256

Tunis, Tunisia

3,350

Ulaanbaatar, Mongolia

5,029*

Vatican City, Vatican

3,859

Vienna, Austria

3,640

Vilnius, Lithuania

5,516

Warsaw, Poland

5,247

Washington, D.C., USA

2,643

Wellington, New Zealand*

6,788

Yaoundé, Cameroon

4,863

Zagreb, Croatia

5,494

*denotes change

Appendix C - Transitional Table

Foreign Service Premium - April 1, 2011

UNACCOMPANIED

Salary ranges

Steps

 

I

II

III

IV

V

VI

 

(0-23)

(24-59)

(60-95)

(96-131)

(132-167)

(168+)

$104,070 to $130,087

6,475

9,720

12,955

14,249

15,545

16,842

$ 130,088 & over

6,761

10,141

13,518

14,869

16,225

17,577

ACCOMPANIED BY ONE DEPENDANT

Salary ranges

Steps

 

I

II

III

IV

V

VI

 

(0-23)

(24-59)

(60-95)

(96-131)

(132-167)

(168+)

$104,070 to $130,087

8,910

13,365

17,816

19,328

21,381

23,159

$ 130,088 & over

9,294

13,942

18,589

20,171

22,309

24,165

ACCOMPANIED BY TWO OR MORE DEPENDANTS

Salary range

Steps

 

I

II

III

IV

V

VI

 

(0-23)

(24-59)

(60-95)

(96-131)

(132-167)

(168+)

$104,070 to $130,087

10,934

16,400

21,861

24,051

26,232

28,415

$ 130,088 & over

11,410

17,109

22,805

25,094

27,369

29,658