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.

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 îndex is greater than 100, in accordance with Appendix A of this directive, where:

1. 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;
2. nominal salary is the mid-point of an employee's salary band, as shown in Appendix A of this directive; and
3. 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. https://www150.statcan.gc.ca/n1/en/catalogue/62-013-X

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 last day of duty at that post.

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:

1. 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
2. 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.

55.3.2 Where a retroactive salary adjustment is authorized on or after October 1, 1989, for employees subject to these directives, either as a result of a collective agreement or unilateral action by the employer, the effective date of the employee's eligibility for a new rate of Post Living Allowance under FSD 55 shall be the effective date of the change in salary, not the date of the instrument effecting the change.

55.4 Methodology

55.4.1 Appendix A of this directive shall be revised, in accordance with the methodology agreed to by the NJC FSD Committee:

1. on June 1^st of each year, to reflect annual inflation as reported by Statistics Canada which reflects the Consumer Price Index for the preceding twelve month period ending December 31^st; and
2. on June 1^st following the publication of the results of Statistics Canada's Survey of Household Spending (SHS) conducted on a four-year cycle.

55.4.2 A post index 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:

1. 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;
2. in the case of devaluation or revaluation of a currency, on the first day of the month next following such change;
3. 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 Federal Public Sector Labour Relations Act, a revision to a post index 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 NJC FSD Committee, 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 26^th 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:

1. 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;
2. 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 26^th compensation day following the employee's departure, whichever is the later; and
3. 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.

June 1, 2023

This table reflects the adjustment which applies to the nominal salary as specified in section 55.1. The annual salary is in Canadian dollars. 

Notes:

1. This Appendix shall be adjusted annually on June 1^st in accordance with the methodology agreed to by the NJC FSD Committee.
2. Where an employee assigned abroad is in receipt of an annual salary which is lower than $40,450, the department must contact the NJC to obtain the information necessary to administer this allowance.

Formula for Calculating Allowances

1. Select the salary range in which the 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 NJC FSD Committee, 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 Midpoint/Nominal salary is $69,950.
• Multiply $69,950 by 0.663, which yields $46,377.
• Multiply $46,377 by a post index of 130 (e.g.), then divide by 100.
• The result is $60,290. Subtract $46,377 and the result is an annual Post Living Allowance of $13,913.

Example 2

• A salary of $120,350 falls into the salary range of $100,000 to $100,000+, of which the Mid-point/Nominal salary is $100,000.
• Multiply $100,000 by 0.518 which yields $51,800.
• Multiply $51,800 by a post index of 130 (e.g.), then divide by 100.
• The result is $67,340. Subtract $51,800 and the result is an annual Post Living Allowance of $15,540.