Report on the Travel Directive, Appendix D (International Meal and Incidental Allowances)

For the National Joint Council Executive Committee

for Fiscal Year 2017-2018

Purpose

At the September 10, 2009 National Joint Council (NJC) Executive Committee meeting, the Committee requested to receive, once a year or as required, a report on trends on the NJC Travel Directive, Appendix D – Meals and Allowances – International. The report provides an overview of quarterly updates for awareness purposes.

Background

• The NJC Travel Directive includes several rates and allowances, which are reflected in its appendices. Appendix D, International Meal and Incidental Allowances for public service employees and other persons travelling on government business, is updated on a quarterly basis (January 1, April 1, July 1 and October 1).
• The updates to the international meal rates are based on actual meal surveys completed by Canadian High Commissions and Canadian Embassies abroad and/or via tracking by Statistics Canada which includes information such as but not limited to: consumer price index (CPI), exchange rates, foreign currency values, inflation, as well as menu samples. The NJC “Guide to NJC Rates and Allowances” further outlines the methodology used to that effect (refer to Annex A).
• The NJC Travel Directive – Appendix D currently lists 231 countries:
  • In 4 listed countries, (Guam, Northern Marianas, Puerto Rico and US Virgin Islands) they are not surveyed and are listed in the USA (Outside the Continental USA Only) meal and incidental allowances.  These reflect the amounts published in Appendix C, under Canada & USA, which are paid in US dollars (USD), and are updated twice a year (April 1^st and October 1^st).
  • In 227 listed countries, there are 192 specific cities surveyed approximately every 3 to 4 years. All other cities not listed in Appendix D for these countries, are allocated 80 per cent of the country’s capital or seat of government location meal allowances and captured as “Other” under the city/location name.  In other instances, it is also possible that only one rate for the country was established.  In addition, meals may be denoted by an asterisk (*) under the “breakfast, lunch and/or dinner” columns of the Appendix due to hotels/restaurants menus not being available.  In those circumstances, employees may be reimbursed for reasonable and justifiable expenses supported by a receipt (or where receipts are unavailable or lost, a signed declaration); and 31 listed countries are not surveyed due to not having a Canadian presence on site, political instability, wars, lack of available transportation to reach destinations and/or poor weather conditions (tropical storm, hurricanes), very small countries/islands, etc.  In those instances, all three (3) meals are denoted by an asterisk – for example: Andorra, Democratic Republic of Korea, Martinique, Syria, etc.
  • In situations where travellers encounter higher meal costs than the provided for meal allowances, actual and reasonable expenses are reimbursed, based on receipts (reference - NJC TD, section 3.4.9).

Overview for the Period of April 1^st, 2017 – March 31^st, 2018

• Inflation - Examples of overall grand total increases greater than 25% – For the most part, increases were impacted by CPI, unemployment, unstable currency, higher costs of supplies and energy and decline in the agriculture sector and the addition of breakfast rates to certain cities. The substantive increase for Guinea-Bissau is primarily due to the number of years that has passed since it was last surveyed in 2011.  Changes for Lesotho are based on the survey results which had double the amount of observations since the last survey which was also done in 2011.

+ 25% Angola	+ 26% South Africa - Durban
+ 27% Sudan	+ 27% Australia - Adelaide
+ 28% Honduras	+ 28% Micronesia
+ 28% Gambia	+ 29% Italy - Rome
+ 30% Swaziland	+ 31% Italy - Milan
+ 35% Guinea-Bissau	+ 55% Lesotho

 

• Deflation - Examples of overall grand total decreases greater than 25% – the decreases (in general) are chiefly due to previous variable CPI, political instability, civil unrest, unfavourable trade deficit and erratic currency. The rates for Mongolia and Azerbaijan are published in USD and due to the strength of the USD, the currency exchange has factored heavily to the decrease. The issue for the decrease in South Sudan is extreme deflation and political unrest which also contributed to the variance in the movement of the rates.

- 39% Mongolia	- 42% Azerbaijan
- 67% South Sudan

 

• New locations/rates – Dubrovnik, Croatia was added to the listing and new rates were added to Tonga (which were previously starred) at the request of the Global Affairs Canada Mission.
• Removed locations/rates – The cities of Venice, Italy; San Pedro Sula, Honduras and Blantyre, Malawi removed during the fiscal year of 2017-2018 at the request of the Global Affairs Canada Missions.
• New Breakfast rates were added to the following locations: Minsk, Belarus; Amman, Jordan; Milan and Rome, Italy and also Maputo, Mozambique. Rates had been previously starred denoting reasonable and justifiable expenses, receipts required.
• Currency changes – There was one location that changed the currency for publication which was Vietnam from Vietnamese Dong to USD at the request of the Global Affairs Canada Mission.  Also Belarus had a devaluation of their currency by 10,000 which was reflected in their published allowances.
• Special Events – There were no special events monitored during the April 2017 to April 2018 timeframe.
• Natural disasters – There were no events that were monitored during the time period of April 2017 to April 2018, however, the following disasters occurred during this time frame which may impact costs in the future and as such have been noted: Earthquake in southern Mexico (8.0), and hurricanes Irma, José and Katia in the Caribbean.
• Grievances – There have been no grievances against the NJC Travel Directive international meal and incidental allowances during this period.

Strategic Communications

• The revised International Meal and Incidental Allowances are normally published on the NJC Web site approximately one week prior to the effective date, on a quarterly basis.
• There is no NJC Communiqué accompanying these standard updates. All travel information is located on both the:
  • NJC Web Site: http://www.njc-cnm.gc.ca/directive/d10/en; and,
  • TBS Travel Web page: https://www.canada.ca/en/treasury-board-secretariat/services/travel-relocation/travel-government-business.html.

Annex A

National Joint Council Travel Directive – Appendix “D”

Rate/Allowance: Meals and allowances – International

References: Appendix D (http://www.njc-cnm.gc.ca/directive/app_d.php?lang=eng)

Description

Appendix D of the Travel Directive establishes the rates and allowances for Module 4 of the Directive for private non-commercial accommodation, meals and incidental expenses at locations abroad, established by country/city (excluding the USA). The currency used for the reimbursement depends on the travel location.

Methodology

The meal rates are calculated based on a survey methodology established by the Treasury Board. Surveys are sent to Canadian High Commissions, Embassies and Consulates abroad for completion and resulting data is compiled for the Foreign Meal Rate Committee for review. The rates for breakfast, lunch and dinner result from the collection of two data sources: (1) a meal survey where meal costs in multiple hotels, cafeterias and restaurants are collected and (2) tracking the international Consumer Price Index (CPI) and foreign currency values. The meal rates include an amount to cover taxes and tips.

Seventy-five percent (75%) of the meal and incidental allowances are paid starting on the thirty-first (31^st) and fifty percent (50%) of the meal allowance on the 121^st consecutive calendar day of travel status (while at the same location) when corporate residences and/or apartment hotels are available to a traveler in the area surrounding the workplace, or the traveler chooses to stay in private non-commercial accommodation.

The Government Travel Committee determines the private non-commercial accommodation allowance. The allowance is based on "best practices" benchmark and was put in place as an incentive to encourage travelers to use private non-commercial accommodation rather than more expensive hotels.

The different percentages for the incidental expense allowances are adjusted by the Government Travel Committee to reflect changes in the overall market.

The Government Travel Committee also determines the weekend travel home and weekend travel‑alternative allowances. It is a global allowance based on the most economical return airfare, the necessary return ground transportation to and from the carrier's terminal, and meals en route. Refer to subsection 3.4.12 of the Travel Directive.

Review Process

Numerous meal rates are reviewed every quarter and resulting revisions, if any, are effective January 1, April 1, July 1 and October 1. Private non-commercial accommodation, incidental expense, weekend travel home and weekend travel – alternative allowances are reviewed during triennial review of the Directive.

Approval Process

Adjustments, if any, to the private non-commercial accommodation, incidental expense, weekend travel home and weekend travel – alternative allowances become recommendations as a result of triennial review for the Executive Committee's approval.

Communication of Decision

Once the rates and allowances are approved they are posted as Appendix D on the NJC's Web site and the directive is amended accordingly.