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 and as described in the Guide to Rates and Allowances – Foreign Service Directives.

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, as defined in FSD 2 – Definitions:

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 post, 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.

56.9.2 For the purposes of subsection FSD 56.9.1, where dependants are absent from the post for a continuous period of more than 25 compensation days and must quarantine at a location which is not the post due to local requirements, the Foreign Service Premium shall resume on the first compensation day following the commencement of the quarantine period rather than the return to the employee’s residence.

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, in accordance with Appendix B of this directive. The allowance is payable in accordance with subsections 49.3.1, 49.3.2 and 49.3.3.

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 described in the Guide to Rates and Allowances – Foreign Service Directives and 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. 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, or for travel of a dependant or other person on a house hunting trip. 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.

 

Effective Date: April 1, 2025

This table reflects the annual foreign service premium rates in Canadian dollars effective April 1^st, 2025.

UNACCOMPANIED
Steps	I	II	III	IV	V	VI
Points	(1-24)	(25-60)	(61-96)	(97-132)	(133-168)	(169+)
Premium	9,005	13,509	17,560	19,316	21,248	22,948
ACCOMPANIED BY ONE DEPENDANT
Steps	I	II	III	IV	V	VI
Points	(1-24)	(25-60)	(61-96)	(97-132)	(133-168)	(169+)
Premium	12,608	18,911	24,589	27,045	29,751	32,129
ACCOMPANIED BY TWO DEPENDANTS
Steps	I	II	III	IV	V	VI
Points	(1-24)	(25-60)	(61-96)	(97-132)	(133-168)	(169+)
Premium	15,130	22,692	29,504	32,451	35,697	38,555
ACCOMPANIED BY THREE DEPENDANTS
Steps	I	II	III	IV	V	VI
Points	(1-24)	(25-60)	(61-96)	(97-132)	(133-168)	(169+)
Premium	15,887	23,828	30,976	34,074	37,483	40,481
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	16,679	25,020	32,524	35,780	39,357	42,509

Note: This appendix shall be adjusted annually on April 1^st in accordance with the methodology agreed to by the NJC FSD Committee and as described in the Guide to Rates and Allowances – Foreign Service Directives.

 

Effective Date: June 1, 2025

This table reflects the annual Post Specific Allowance (PSA) rates in Canadian dollars effective June 1, 2025, where the headquarters city is Ottawa.

Post	PSA (CAD) $
Abidjan, Cote d’Ivoire	7,166
Abu Dhabi, United Arab Emirates	5,545
Abuja, Nigeria	6,916
Accra, Ghana	4,478
Addis Ababa, Ethiopia	3,369
Algiers, Algeria	3,584
Amman, Jordan	3,451
Ankara, Turkey	6,445
Astana, Kazakhstan	4,575
Athens, Greece	3,369
Atlanta, USA	3,084
Auckland, New Zealand	7,137
Baghdad, Iraq	7,598
Bamako, Mali	3,703
Bandar Seri Begawan, Brunei Darussalam	11,329
Bangalore, India	5,261
Bangkok, Thailand	6,930
Barcelona, Spain	4,486
Beijing, China	12,211
Beirut, Lebanon	4,958
Belgrade, Serbia	4,143
Berlin, Germany	5,134
Berne, Switzerland	5,057
Bogota, Colombia	5,157
Boston, USA	1,740
Brasilia, Brazil	8,604
Bratislava, Slovakia	3,097
Bridgetown, Barbados	4,585
Brussels, Belgium	4,367
Bucharest, Romania	4,050
Budapest, Hungary	3,756
Buenos Aires, Argentina	8,652
Cairo, Egypt	2,659
Canberra, Australia	10,567
Chandigarh, India	5,405
Chicago, USA	3,026
Chongqing, China	11,459
Colombo, Sri Lanka	3,442
Colorado Springs, USA	3,476
Copenhagen, Denmark	3,738
Cotonou, Benin	7,311
Dakar, Senegal	6,517
Dallas, USA	3,439
Dar-es-Salaam, Tanzania	5,721
Denver, USA	3,472
Detroit, USA	2,896
Dhaka, Bangladesh	3,623
Doha, Qatar	3,606
Dubai, United Arab Emirates	4,083
Dublin, Ireland	4,661
Düsseldorf, Germany	5,232
Erbil, Iraqi Kurdistan	6,665
Geneva, Switzerland	4,913
Georgetown, Guyana	4,273
Guadalajara, Mexico	5,352
Guangzhou, China	12,046
Guatemala, Guatemala	6,495
Hague, Netherlands	4,196
Hanoi, Vietnam	12,527
Harare, Zimbabwe	3,660
Havana, Cuba	5,983
Helsinki, Finland	4,129
Ho Chi Minh, Vietnam	12,521
Hong Kong, China	5,136
Houston, USA	3,466
Islamabad, Pakistan	5,356
Istanbul, Turkey	6,269
Jakarta, Indonesia	8,097
Johannesburg, South Africa	6,425
Juba, Sudan	4,210
Kigali, Rwanda	5,203
Kingston, Jamaica	3,992
Kinshasa, Democratic Republic of Congo	7,488
Kuala Lumpur, Malaysia	14,875
Kuwait City, Kuwait	3,648
Kyiv, Ukraine	5,204
La Paz, Bolivia	7,058
Lagos, Nigeria	7,335
Lima, Peru	6,787
Lisbon, Portugal	3,943
London, UK	4,360
Los Angeles, USA	2,967
Lusaka, Zambia	3,830
Lyon, France	6,420
Madrid, Spain	4,491
Managua, Nicaragua	6,449
Manila, Philippines	8,948
Maputo, Mozambique	5,784
Mexico City, Mexico	4,793
Miami, USA	2,899
Milan, Italy	4,563
Minneapolis, USA	2,963
Monterrey, Mexico	4,841
Montevideo, Uruguay	8,065
Moscow, Russia	4,726
Mumbai, India	5,262
Munich, Germany	5,106
Nagoya, Japan	8,761
Nairobi, Kenya	3,783
New Delhi, India	5,222
New York, USA	1,877
Oslo, Norway	3,297
Ouagadougou, Burkina Faso	6,472
Panama City, Panama	5,808
Paris, France	4,499
Phnom Penh, Cambodia	13,457
Port-au-Prince, Haiti	8,103
Port-of-Spain, Trinidad and Tobago	4,426
Prague, Czech Republic	3,943
Pretoria, South Africa	6,425
Quito, Ecuador	7,063
Rabat, Morocco	7,695
Ramallah, West Bank	5,696
Reykjavik, Iceland	2,223
Riga, Latvia	4,120
Rio de Janeiro, Brazil	7,557
Riyadh, Saudi Arabia	3,938
Rome/Vatican, Italy	4,569
San Diego, USA	3,016
San Francisco, USA	3,483
San Jose, Costa Rica	4,411
San Salvador, El Salvador	5,460
Santiago, Chile	7,765
Santo Domingo, Dominican Republic	5,851
Sao Paulo, Brazil	7,544
Seattle, USA	3,476
Seoul, South Korea	4,682
Shanghai, China	12,309
Singapore, Singapore	6,830
Stockholm, Sweden	3,775
Suva, Fiji	4,328
Sydney, Australia	10,015
Taipei, Taiwan	3,280
Tallin, Estonia	4,074
Tegucigalpa, Honduras	5,595
Tel Aviv, Israel	5,714
Tokyo, Japan	8,512
Tunis, Tunisia	2,855
Ulaanbaatar, Mongolia	9,267
Vienna, Austria	4,397
Vientiane, Laos	9,232
Vilnius, Lithuania	3,681
Warsaw, Poland	3,658
Washington DC, USA	2,238
Wellington, New Zealand	3,722
Yangon, Myanmar (Burma)	6,124
Yaoundé, Cameroon	5,375
Yerevan, Armenia	3,960
Zagreb, Croatia	5,371

Note: This appendix shall be adjusted in accordance with the methodology agreed to by the NJC FSD Committee and as described in the Guide to Rates and Allowances – Foreign Service Directives.

 

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).