FSD 55 - Post Living Allowance

Introduction

To assist employees at missions 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.

Directive 55

55.01 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 the appendix to this directive, where:

Instructions

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 31^st.

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

55.02 The appendix to this directive shall be revised, in accordance with the methodology agreed to in the National Joint Council Committee on Foreign Service Directives:

General

55.03 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.

Instructions

1. For purposes of Section 55.03, "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.

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 in the National Joint Council Committee on Foreign Service Directives.

55.04 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.

55.05 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 26^th compensation day and shall resume on the first compensation day following the employee's return to the post.

55.06 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:

55.07 Where an employee is transferred from one post to another, the PLA calculated in accordance with Section 55.01 shall continue until the day of the employee's arrival at the new post except, where:

55.08

55.09 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.

55.10 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.

Form

TBC 330-35 - Monthly Exchange Rate Report

June 1, 2011

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 in 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 0.516, which yields $36,094.
• Multiply $36,094 by a Post Index of 130, then divide by 100.
• The result is $46,922. Subtract $36,094 and the result is an annual Post Living Allowance of $10,828.

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.