FSD 56 - Foreign Service Incentive Allowances

Scope

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.

Definitions

Note: These definitions only apply to this directive.

Child (enfant) refers to a dependant as defined in FSD 2 - Definitions.

Reside with the employee at the post (partage la résidence du fonctionnaire au poste) means that the dependant resides with the employee at the post for at least 8 months of any consecutive 12-month period.

Single parent (parent célibataire) is the parent in a family unit comprising the employee and a child.

Directive

56.1 Application

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

56.2 Foreign Service Premium

56.2.1 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:

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

(b) 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.

56.2.2 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 by the National Joint Council Committee on Foreign Service Directives, and published on the Department of Foreign Affairs and International Trade's website.

56.2.3 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.

56.3 Employee-Couple

56.3.1 Each employee of an employee-couple who is 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.

56.3.2 Each employee of an employee-couple who is 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.

56.4 Premium Rates

56.4.1 Subject to Sections 56.8 and 56.9, 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 - Definitions;

(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.

56.5 Foreign Service Steps

56.5.1 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.

56.5.2 On initial assignment outside Canada, an employee shall receive the applicable Step I rate of Foreign Service Premium.

56.5.3 Subject to Section 56.10, an employee shall receive:

(a) the Step II rate of Foreign Service Premium upon accumulation of 24 points;

(b) the Step III rate of Foreign Service Premium upon accumulation of 60 points;

(c) the Step IV rate of Foreign Service Premium upon accumulation of 96 points;

(d) the Step V rate of Foreign Service Premium upon accumulation of 132 points; and

(e) the Step VI rate of Foreign Service Premium upon accumulation of 168 points.

56.6 Foreign Service Points

56.6.1 Points shall be calculated for service outside Canada:

(a) 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,

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

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

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

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

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

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

56.6.2 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 69.4, 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.

56.6.3 Subject to Section 56.10, 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.

56.6.4 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.

56.7 Effective Date

56.7.1 Except where otherwise provided, unless an employee is cross-posted from one post to another post, in which case the Foreign Service Premium shall continue without interruption, 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.

56.8 Change in Family Size

56.8.1 Where an employee is in receipt of a Foreign Service Premium in accordance with Section 56.2, 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.

56.8.2 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 subsection 56.9.1 shall apply.

56.9 Temporary Absence of Dependant

56.9.1 Where an employee receives an accompanied rate of Foreign Service Premium in accordance with subsection 56.4.1, 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 subparagraph 56.4.1(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.

56.10 Termination of Premium

56.10.1 Notwithstanding Section 56.5, no premium is payable, without the approval of the deputy head, to an employee who has served seven consecutive years at the same post. Where an exception is made, a report shall be made to the Treasury Board Secretariat outlining the program-related circumstances which justify this exception.

56.10.2 Notwithstanding subsection 56.6.1, where payment of the premium has been terminated in accordance with subsection 56.10.1, the employee shall cease to accumulate points for service outside Canada during the period in which payment of the premium is not authorized.

56.11 Post Specific Allowance

56.11.1 Subject to the provisions of subsections 56.11.4 and 56.11.5, 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.

56.11.2 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 by the National Joint Council Committee on Foreign Service Directives, 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 full (Y) economy fare is not available for a specific post, 100% of a discounted economy (Y2) fare shall be used for that post.

56.11.3 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.

56.11.4 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 46.2;

(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 46.1.3(b) of FSD 46 - Post Leave/Option, having accumulated 40 days of post leave credits.

56.11.5 Except that, 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. Where an advance has been authorized, the employee will be required to provide evidence that the allowance was used for the purpose it was issued.

56.11.6 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 in writing two months prior to the date of the desired change. Employees may change their election no more than once per year.

Appendix A - Foreign Service Premium – Section 56.2

April 1, 2018

UNACCOMPANIED

Steps

I

II

III

IV

V

VI

Points

(0-23)

(24-59)

(60-95)

(96-131)

(132-167)

(168+)

Premium

7,189

10,783

14,019

15,419

16,961

18,318

ACCOMPANIED BY ONE DEPENDANT

Steps

I

II

III

IV

V

VI

Points

(0-23)

(24-59)

(60-95)

(96-131)

(132-167)

(168+)

Premium

10,065

15,096

19,628

21,588

23,748

25,647

ACCOMPANIED BY TWO DEPENDANTS

Steps

I

II

III

IV

V

VI

Points

(0-23)

(24-59)

(60-95)

(96-131)

(132-167)

(168+)

Premium

12,076

18,114

23,551

25,904

28,495

30,777

ACCOMPANIED BY THREE DEPENDANTS

Steps

I

II

III

IV

V

VI

Points

(0-23)

(24-59)

(60-95)

(96-131)

(132-167)

(168+)

Premium

12,681

19,020

24,727

27,200

29,921

32,314

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

13,313

19,973

25,963

28,561

31,416

33,932

Note:

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

Appendix B - Post Specific Allowance (PSA) – Section 56.11

June 1, 2018

The Table below reflects the PSA rates effective June 1, 2018, where the headquarters city is Ottawa. (Canadian Dollars Per Annum) 

Post

PSA 2018
($)

Abidjan, Côte d'Ivoire

7,255

Abu Dhabi, United Arab Emirates

5,779

Abuja, Nigeria

5,828

Accra, Ghana

4,415

Addis Ababa, Ethiopia

4,666

Algiers, Algeria

3,282

Amman, Jordan

3,792

Ankara, Turkey

3,710

Astana, Kazakhstan

5,158

Athens, Greece

4,763

Atlanta, Georgia, USA

2,360

Auckland, New Zealand

7,218

Baghdad, Iraq

3,855

Bamako, Mali

6,213

Bandar Seri Begawan, Brunei Darussalam

8,195

Bangalore, India

5,157

Bangkok, Thailand

7,549

Barcelona, Spain

5,245

Beijing, China

6,895

Beirut, Lebanon

4,212

Belgrade, Serbia

4,859

Berlin, Germany

5,375

Berne, Switzerland

4,765

Bogotá, Colombia

2,880

Boston, Massachusetts, USA

2,411

Brasilia, Brazil

5,246

Bratislava, Slovakia

5,645

Bridgetown, Barbados

2,431

Brussels, Belgium

5,169

Bucharest, Romania

5,287

Budapest, Hungary

5,090

Buenos Aires, Argentina

6,827

Cairo, Egypt

2,922

Canberra, Australia

8,552

Caracas, Venezuela

8,923

Chandigarh, India

5,301

Chicago, Illinois, USA

3,041

Chongqing, China

7,612

Colombo, Sri Lanka

5,666

Copenhagen, Denmark

5,412

Cotonou, Benin

6,728

Dakar, Senegal

6,354

Dallas, Texas, USA

2,552

Dar es Salaam, Tanzania

4,561

Denver, Colorado, USA

3,010

Detroit, Michigan, USA

1,582

Dhaka, Bangladesh

7,369

Doha, Qatar

5,008

Dubai, United Arab Emirates

5,768

Dublin, Ireland

5,171

Düsseldorf, Germany

5,376

Erbil, Iraqi Kurdistan

5,350

Geneva, Switzerland

4,620

Georgetown, Guyana

2,476

Guadalajara, Mexico

2,588

Guangzhou, China

7,788

Guatemala, Guatemala

3,030

Hague, Netherlands

5,560

Hanoi, Vietnam

7,768

Harare, Zimbabwe

6,175

Havana, Cuba

2,033

Helsinki, Finland

5,826

Ho Chi Minh City, Vietnam

7,779

Hong Kong, China

6,703

Houston, Texas, USA

2,860

Islamabad, Pakistan

2,938

Istanbul, Turkey

3,438

Jakarta, Indonesia

8,981

Johannesburg, South Africa

3,535

Juba, Sudan

6,880

Kabul, Afghanistan

3,325

Khartoum, Sudan

4,308

Kigali, Rwanda

4,432

Kingston, Jamaica

2,315

Kinshasa, Democratic Republic of Congo

6,265

Kuala Lumpur, Malaysia

6,445

Kuwait City, Kuwait

4,204

Kyiv, Ukraine

5,744

La Paz, Bolivia

4,722

Lagos, Nigeria

6,697

Lima, Peru

4,132

Lisbon, Portugal

5,095

London, England

3,201

Los Angeles, California, USA

3,968

Lusaka, Zambia

6,211

Madrid, Spain

5,287

Managua, Nicaragua

4,351

Manila, Philippines

7,843

Maputo, Mozambique

4,286

Melbourne, Australia

8,547

Mexico City, Mexico

2,476

Miami, Florida, USA

2,700

Minneapolis, Minnesota, USA

2,884

Monterrey, Mexico

2,536

Montevideo, Uruguay

5,683

Moscow, Russia

6,020

Mumbai, India

5,093

Munich, Germany

5,368

Nagoya, Japan

8,395

Nairobi, Kenya

4,426

New Delhi, India

5,071

New York, New York, USA

1,879

Oslo, Norway

4,811

Ouagadougou, Burkina Faso

6,491

Panama City, Panama

2,212

Paris, France

6,362

Phnom Penh, Cambodia

7,923

Port-au-Prince, Haiti

2,713

Port of Spain, Trinidad and Tobago

2,378

Prague, Czech Republic

5,404

Pretoria, South Africa

3,535

Quito, Ecuador

4,008

Rabat, Morocco

5,386

Ramallah, West Bank

4,057

Reykjavik, Iceland

2,260

Riga, Latvia

5,614

Rio de Janeiro, Brazil

5,501

Riyadh, Saudi Arabia

4,984

Rome, Italy

4,381

San Diego, California, USA

3,452

San Francisco, California, USA

4,442

San José, Costa Rica

2,925

San Salvador, El Salvador

3,179

Santiago, Chile

6,193

Santo Domingo, Dominican Republic

3,606

São Paulo, Brazil

5,483

Seattle, Washington, USA

3,871

Seoul, South Korea

5,788

Shanghai, China

6,697

Singapore, Singapore

7,443

Stockholm, Sweden

4,755

Sydney, Australia

8,360

Taipei, Taiwan

8,193

Tegucigalpa, Honduras

3,901

Tel Aviv, Israel

4,043

Tokyo, Japan

8,353

Tunis, Tunisia

3,066

Ulaanbaatar, Mongolia

6,939

Vienna, Austria

5,627

Vientiane, Laos

8,040

Vilnius, Lithuania

5,359

Warsaw, Poland

5,703

Washington, D.C., USA

4,237

Wellington, New Zealand

7,216

Yangon, Burma (Myanmar)

4,827

Yaoundé, Cameroon

5,662

Zagreb, Croatia

5,392

Note:

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

 

Appendix C - Transitional Table - Foreign Service Premium – Section 56.2

April 1, 2018

Canadian Dollars Per Annum

UNACCOMPANIED

Salary ranges

Steps

 

I

II

III

IV

V

VI

 

(0-23)

(24-59)

(60-95)

(96-131)

(132-167)

(168+)

$115,075 to $143,843

7,291

10,945

14,587

16,043

17,501

18,964

$143,844 & over

7,613

11,418

15,220

16,743

18,269

19,793

ACCOMPANIED BY ONE DEPENDANT

Salary ranges

Steps

 

I

II

III

IV

V

VI

 

(0-23)

(24-59)

(60-95)

(96-131)

(132-167)

(168+)

$115,075 to $143,843

10,032

15,049

20,060

21,763

24,074

26,078

$143,844 & over

10,465

15,698

20,931

22,712

25,119

27,210

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+)

$115,075 to $143,843

12,310

18,466

24,615

27,082

29,538

31,994

$143,844 & over

12,847

19,264

25,677

28,255

30,817

33,394

Note:

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