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 configuration 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.

The Post Specific Allowance is a non-accountable travel allowance designed to assist employees in travelling from post and reflects 80% of return unrestricted full economy air fare between the employee's post and the headquarters city or where an unrestricted full economy airfare is not available, 100% of the highest available economy class airfare. This allowance is only available when an employee is not subject to the provisions of FSD 46 - Post Leave Option.

Definition

Note: This definition only applies to this directive.

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

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 configuration and service outside Canada, calculated in accordance with Appendix A of this directive.

56.2.2 Appendix A of this directive shall be updated annually on April 1^st, in accordance with the methodology agreed to by the NJC FSD Committee.

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 at the applicable rate as specified in Appendix A of this directive having regard for the employee’s step level and employee’s family configuration as defined in FSD 2 –Definitions. A single parent whose children are dependent students as defined in FSD 2 – Definitions shall be entitled to the accompanied by one dependant rate.

56.5 Foreign Service Points

56.5.1 Points shall be calculated for service outside Canada at the rate of one point per month of service as defined in FSD 2 – Definitions for all employees effective April 1, 1979. Points accumulated prior to April 1, 1979 were calculated as outlined in Appendix C of this directive – Foreign Service Premium Point Calculation Prior to April 1, 1979.

56.5.2 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.

56.5.3 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.

56.6 Foreign Service Steps

56.6.1 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.

56.6.2 An employee shall receive the applicable Step I rate of Foreign Service Premium until 24 points have been accumulated.

56.6.3 Subject to section 56.10, an employee shall receive:

1. the Step II rate of Foreign Service Premium upon accumulation of 24 points;
2. the Step III rate of Foreign Service Premium upon accumulation of 60 points;
3. the Step IV rate of Foreign Service Premium upon accumulation of 96 points;
4. the Step V rate of Foreign Service Premium upon accumulation of 132  points; and
5. the Step VI rate of Foreign Service Premium upon accumulation of 168 points.

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:

1. commence on the first compensation day following the employee's arrival at the post; and
2. 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:

1. takes up permanent residence with the employee at the post; or
2. ceases to be a dependant or takes up a separate domicile; or
3. 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 26^th compensation day and shall resume on the first compensation day following the return of the dependant to the employee's residence, except that:

1. this section shall not apply to an employee who is a single parent and is in receipt of the "accompanied by one dependant" rate of premium where the dependant is a dependent student under section 56.4; and
2. 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 coordinating committee.

56.10 Termination of Premium

56.10.1 Notwithstanding section 56.6, 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 56.5.1, 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 of this directive.

56.11.2 The allowance shall be established in accordance with the methodology agreed to by the NJC FSD Committee for FSD 50 – Post Travel Assistance and section 56.11 – Post Specific Allowance effective June 1^st of each year as published in Appendix B of FSD 56 – Foreign Service Incentive Allowances to be equivalent to:

1. 80% of an unrestricted full economy airfare for return travel from the employee’s post to the headquarters city; or
2. where there is no unrestricted full economy airfare for all or a portion of the journey, 100% of the highest available economy class airfare.

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:

1. on the first compensation day following the employee’s arrival at post unless the employee has elected for the provisions of FSD 46 - Post Leave Option; or
2. on such date as may be determined by the deputy head for employees who are subject to the provisions of FSD 46 - Post Leave Option and have accumulated 40 days of post leave credits in accordance with the provisions of FSD 46 - Post Leave Option.

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.

April 1, 2024

This table reflects the annual Foreign Service Premium (FSP) rates in Canadian dollars effective April 1^st, 2024.

UNACCOMPANIED
Steps	I	II	III	IV	V	VI
Points	(1-24)	(25-60)	(61-96)	(97-132)	(133-168)	(169+)
Premium	8,803	13,205	17,165	18,882	20,770	22,432
ACCOMPANIED BY ONE DEPENDANT
Steps	I	II	III	IV	V	VI
Points	(1-24)	(25-60)	(61-96)	(97-132)	(133-168)	(169+)
Premium	12,325	18,486	24,036	26,437	29,082	31,407
ACCOMPANIED BY TWO DEPENDANTS
Steps	I	II	III	IV	V	VI
Points	(1-24)	(25-60)	(61-96)	(97-132)	(133-168)	(169+)
Premium	14,790	22,182	28,841	31,721	34,894	37,688
ACCOMPANIED BY THREE DEPENDANTS
Steps	I	II	III	IV	V	VI
Points	(1-24)	(25-60)	(61-96)	(97-132)	(133-168)	(169+)
Premium	15,530	23,292	30,280	33,308	36,640	39,571
ACCOMPANIED BY FOUR OR MORE DEPENDANTS
Steps	I	II	III	IV	V	VI
Points	(1-24)	(25-60)	(61-96)	(97-132)	(133-168)	(169+)
Premium	16,304	24,457	31,793	34,976	38,472	41,553

This appendix shall be adjusted annually on April 1^st in accordance with the methodology agreed to by the NJC FSD Committee.

June 1, 2023

This table reflects the annual Post Specific Allowance (PSA) rates in Canadian dollars effective June 1, 2023, where the headquarters city is Ottawa.

Post	PSA 2023 ($)
Abidjan, Côte d'Ivoire	6,437
Abu Dhabi, United Arab Emirates	4,304
Abuja, Nigeria	5,928
Accra, Ghana	4,641
Addis Ababa, Ethiopia	3,304
Algiers, Algeria	2,506
Amman, Jordan	3,032
Ankara, Turkey	5,658
Astana (formerly Nur-Sultan), Kazakhstan	4,014
Athens, Greece	3,044
Atlanta, Georgia, USA	2,741
Auckland, New Zealand	6,945
Baghdad, Iraq	16,275
Bamako, Mali	6,558
Bandar Seri Begawan, Brunei Darussalam	10,106
Bangalore, India	3,734
Bangkok, Thailand	7,032
Barcelona, Spain	4,106
Beijing, China	10,476
Beirut, Lebanon	4,343
Belgrade, Serbia	3,781
Berlin, Germany	4,051
Berne, Switzerland	4,515
Bogotá, Colombia	4,698
Boston, Massachusetts, USA	1,631
Brasilia, Brazil	8,301
Bratislava, Slovakia	3,353
Bridgetown, Barbados	3,730
Brussels, Belgium	3,434
Bucharest, Romania	3,555
Budapest, Hungary	3,670
Buenos Aires, Argentina	8,103
Cairo, Egypt	1,899
Canberra, Australia	9,729
Chandigarh, India	7,459
Chicago, Illinois, USA	3,346
Chongqing, China	10,574
Colombo, Sri Lanka	3,519
Colorado Springs, Colorado, USA	3,536
Copenhagen, Denmark	3,431
Cotonou, Benin	6,775
Dakar, Senegal	6,475
Dallas, Texas, USA	3,261
Dar es Salaam, Tanzania	4,908
Denver, Colorado, USA	3,129
Detroit, Michigan, USA	2,396
Dhaka, Bangladesh	3,758
Doha, Qatar	3,115
Dubai, United Arab Emirates	3,520
Dublin, Ireland	4,284
Düsseldorf, Germany	4,102
Erbil, Iraqi Kurdistan	16,279
Geneva, Switzerland	4,258
Georgetown, Guyana	3,747
Guadalajara, Mexico	3,657
Guangzhou, China	10,376
Guatemala, Guatemala	5,473
Hague, Netherlands	3,504
Hanoi, Vietnam	9,916
Harare, Zimbabwe	3,738
Havana, Cuba	3,344
Helsinki, Finland	3,748
Ho Chi Minh City, Vietnam	9,910
Hong Kong, China	6,369
Houston, Texas, USA	3,348
Islamabad, Pakistan	6,758
Istanbul, Turkey	5,465
Jakarta, Indonesia	8,998
Johannesburg, South Africa	2,919
Juba, Sudan	4,120
Khartoum, Sudan	5,088
Kigali, Rwanda	4,989
Kingston, Jamaica	2,399
Kinshasa, Democratic Republic of Congo	7,215
Kuala Lumpur, Malaysia	6,561
Kuwait City, Kuwait	4,521
Kyiv, Ukraine	3,226
La Paz, Bolivia	5,356
Lagos, Nigeria	6,244
Lima, Peru	6,776
Lisbon, Portugal	3,645
London, UK	3,943
Los Angeles, California, USA	3,051
Lusaka, Zambia	3,431
Lyon, France	4,066
Madrid, Spain	4,110
Managua, Nicaragua	5,122
Manila, Philippines	10,617
Maputo, Mozambique	4,657
Mexico City, Mexico	3,530
Miami, Florida, USA	2,661
Milan, Italy	4,217
Minneapolis, Minnesota, USA	2,741
Monterrey, Mexico	3,577
Montevideo, Uruguay	6,078
Moscow, Russia	9,542
Mumbai, India	3,742
Munich, Germany	4,039
Nagoya, Japan	9,026
Nairobi, Kenya	3,591
New Delhi, India	3,731
New York, New York, USA	1,974
Oslo, Norway	2,933
Ouagadougou, Burkina Faso	6,852
Panama City, Panama	4,164
Paris, France	4,069
Phnom Penh, Cambodia	8,647
Port-au-Prince, Haiti	6,631
Port of Spain, Trinidad and Tobago	3,498
Prague, Czech Republic	3,528
Pretoria, South Africa	2,919
Quito, Ecuador	5,601
Rabat, Morocco	4,732
Ramallah, West Bank	4,074
Reykjavik, Iceland	2,382
Riga, Latvia	3,726
Rio de Janeiro, Brazil	7,326
Riyadh, Saudi Arabia	6,439
Rome/Vatican, Italy	4,245
San Diego, California, USA	2,849
San Francisco, California, USA	2,763
San José, Costa Rica	3,529
San Salvador, El Salvador	4,086
Santiago, Chile	7,295
Santo Domingo, Dominican Republic	4,484
São Paulo, Brazil	7,508
Seattle, Washington, USA	2,674
Seoul, South Korea	4,908
Shanghai, China	11,683
Singapore, Singapore	8,365
Stockholm, Sweden	3,307
Suva, Fiji	11,780
Sydney, Australia	9,128
Taipei, Taiwan	2,667
Tallinn, Estonia	3,683
Tegucigalpa, Honduras	6,538
Tel Aviv, Israel	4,028
Tokyo, Japan	9,013
Tunis, Tunisia	2,584
Ulaanbaatar, Mongolia	6,043
Vienna, Austria	3,271
Vientiane, Laos	8,777
Vilnius, Lithuania	3,727
Warsaw, Poland	3,226
Washington, D.C., USA	1,957
Wellington, New Zealand	7,083
Yangon, Myanmar	12,070
Yaoundé, Cameroon	5,206
Yerevan, Armenia	3,516
Zagreb, Croatia	3,412

Note:

This appendix shall be adjusted in accordance with the methodology agreed to by the NJC FSD Committee.

 

Prior to April 1, 1979, the Foreign Service Premium points were calculated as follows:

1. 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;
2. before July 1, 1975, for career foreign service employees, at the rate of one point per month of service;
3. between July 1, 1975, and April 1, 1979, for all employees, at the rate of:
   1. 1 point per month of service at posts which were not listed in Appendix B of FSD 58 – Post Differential Allowance (1975);
   2. 25 points per month of service at posts which were rated at Levels I and II in Appendix B of FSD 58 - Post Differential Allowance (1975); and
   3. 5 points per month of service at posts which were rated at Levels III and IV in Appendix B of FSD 58 - Post Differential Allowance (1975).