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, 2024

This table reflects the annual Post Specific Allowance (PSA) rates in Canadian dollars effective June 1, 2024, where the headquarters city is Ottawa.

Post	PSA, 2024(CAD) ($)
Abidjan, Cote d’Ivoire	6,463
Abu Dhabi, United Arab Emirates	4,590
Abuja, Nigeria	6,046
Accra, Ghana	4,774
Addis Ababa, Ethiopia	3,344
Algiers, Algeria	3,018
Amman, Jordan	3,111
Ankara, Turkey	5,507
Athens, Greece	3,071
Astana, Kazakhstan	4,099
Atlanta, USA	2,724
Auckland, New Zealand	7,294
Baghdad, Iraq	8,413
Bamako, Mali	6,918
Bandar Seri Begawan, Brunei Darussalam	8,125
Bangalore, India	4,050
Bangkok, Thailand	6,325
Barcelona, Spain	4,152
Beijing, China	11,474
Beirut, Lebanon	4,442
Belgrade, Serbia	3,790
Berlin, Germany	4,062
Berne, Switzerland	4,296
Bogota, Colombia	4,933
Boston, USA	1,843
Brasilia, Brazil	7,894
Bratislava, Slovakia	3,347
Bridgetown, Barbados	4,085
Brussels, Belgium	3,454
Bucharest, Romania	3,568
Budapest, Hungary	3,532
Buenos Aires, Argentina	8,374
Cairo, Egypt	2,636
Canberra, Australia	10,392
Chandigarh, India	4,223
Chicago, USA	2,854
Chongqing, China	11,379
Colombo, Sri Lanka	3,576
Colorado Springs, USA	3,579
Copenhagen, Denmark	3,414
Cotonou, Benin	7,253
Dakar, Senegal	6,500
Dallas, USA	3,447
Dar-es-Salaam, Tanzania	5,337
Denver, USA	3,149
Detroit, USA	2,573
Dhaka, Bangladesh	3,855
Doha, Qatar	3,468
Dubai, United Aram Emirates	3,732
Dublin, Ireland	4,316
Düsseldorf, Germany	4,120
Erbil, Iraqi Kurdistan	6,423
Geneva, Switzerland	4,289
Georgetown, Guyana	4,219
Guadalajara, Mexico	3,688
Guangzhou, China	11,775
Guatemala, Guatemala	6,477
Hague, Netherlands	3,843
Hanoi, Vietnam	9,676
Harare, Zimbabwe	3,625
Havana, Cuba	5,532
Helsinki, Finland	3,737
Ho Chi Minh, Vietnam	9,671
Hong Kong, China	6,973
Houston, USA	3,579
Islamabad, Pakistan	5,351
Istanbul, Turkey	5,322
Jakarta, Indonesia	8,720
Johannesburg, South Africa	4,112
Juba, Sudan	3,740
Kigali, Rwanda	5,126
Kingston, Jamaica	3,349
Kinshasa, Democratic Republic of Congo	7,387
Kuala Lumpur, Malaysia	6,386
Kuwait City, Kuwait	4,787
Kyiv, Ukraine	3,598
La Paz, Bolivia	6,981
Lagos, Nigeria	6,355
Lima, Peru	6,692
Lisbon, Portugal	3,638
London, UK	4,024
Los Angeles, USA	2,527
Lusaka, Zambia	3,675
Lyon, France	4,167
Madrid, Spain	4,156
Managua, Nicaragua	6,112
Manila, Philippines	10,007
Maputo, Mozambique	7,362
Mexico City, Mexico	3,627
Miami, USA	2,510
Milan, Italy	4,249
Minneapolis, USA	2,921
Monterrey, Mexico	3,633
Montevideo, Uruguay	7,422
Moscow, Russia	8,635
Mumbai, India	4,020
Munich, Germany	4,039
Nagoya, Japan	8,238
Nairobi, Kenya	3,715
New Delhi, India	4,017
New York, USA	2,130
Oslo, Norway	2,964
Ouagadougou, Burkina Faso	6,301
Panama City, Panama	5,489
Paris, France	4,117
Phnom Penh, Cambodia	8,858
Port-au-Prince, Haiti	5,315
Port-of-Spain, Trinidad and Tobago	3,927
Prague, Czech Republic	3,570
Pretoria, South Africa	4,112
Quito, Ecuador	6,381
Rabat, Morocco	7,030
Ramallah, West Bank	4,316
Reykjavik, Iceland	2,064
Riga, Latvia	3,783
Rio de Janeiro, Brazil	7,107
Riyadh, Saudi Arabia	3,577
Rome/Vatican, Italy	4,227
San Diego, USA	3,078
San Francisco, USA	3,009
San Jose, Costa Rica	3,811
San Salvador, El Salvador	4,447
Santiago, Chile	7,533
Santo Domingo, Dominican Republic	6,576
Sao Paulo, Brazil	7,094
Seattle, USA	2,838
Seoul, South Korea	5,172
Shanghai, China	12,226
Singapore, Singapore	6,872
Stockholm, Sweden	3,201
Suva, Fiji	7,516
Sydney, Australia	9,840
Taipei, Taiwan	3,074
Tallin, Estonia	3,743
Tegucigalpa, Honduras	7,667
Tel Aviv, Israel	4,718
Tokyo, Japan	7,924
Tunis, Tunisia	2,613
Ulaanbaatar, Mongolia	9,367
Vienna, Austria	3,297
Vientiane, Laos	9,233
Vilnius, Lithuania	3,328
Warsaw, Poland	3,151
Washington DC, USA	2,150
Wellington, New Zealand	3,656
Yangon, Myanmar (Burma)	9,316
Yaoundé, Cameroon	5,212
Yerevan, Armenia	3,804
Zagreb, Croatia	3,445

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).