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Indexes of Living Costs Abroad, Quarters Allowances, and Hardship Differentials October 1997 |
This report contains the U.S. Department of State indexes of living costs abroad, quarters allowances, hardship differentials, and danger pay allowances. The statistics are computed by the Office of Allowances of the Department of State for use in establishing allowances to compensate U.S. Government civilian employees for costs and hardships related to assignments abroad. This information is also used by many business firms and other private organizations to assist in establishing private compensation systems. The data are published quarterly in January, April, July, and October.
Detailed explanations of the methods of compiling the local and U.S. Government indexes, quarters allowances, hardship differentials, and danger pay allowances are included in the Technical Notes sections of the January, April, and July publications. It is important that allowance data users be thoroughly familiar with the methods used in compiling these statistics and their limitations. The data are compiled primarily to establish allowances for Federal civilian employees abroad, and the government allowance program includes additional relocation benefits which will be described in the Technical Notes section of the October publication.
Indexes of Living Costs Abroad
The indexes of living costs (Table 1) are used to compute cost-of-living allowances for employees at posts where living costs, based on an American pattern of living, are significantly higher than in the Washington, D.C. area. To compute a cost-of-living allowance, the appropriate index of living costs is applied to spendable income the estimated portion of employee salary used to purchase goods and services. The cost-of-living allowance is a goods and services allowance. It does not cover U.S. or foreign income taxes, retirement contributions, life insurance premiums, personal savings, investments or charitable contributions. In addition, it does not cover housing and children's education, which are covered by separate allowances.
The indexes of living costs abroad compare the costs in dollars of representative goods and services (excluding housing and education) purchased at the foreign location and the cost of comparable goods and services in the Washington, D.C. area. The indexes are calculated on the basis of price data reported by foreign posts using a standard Retail Price Schedule and data similarly reported by the Bureau of Labor Statistics of the U.S. Department of Labor for the Washington, D.C. area.
In addition to the indexes used to establish post (cost-of-living) allowances for U.S. Government employees, separate indexes are computed solely for private Americans living abroad. The indexes computed for private American employees the local relative and local index exclude special advantages that may be available only to U.S. Government employees. The U.S. Government relative and the U.S. Government index must include prices of goods imported to posts, sales tax rebates, military- or employee-operated post commissaries, and other advantages that may be available only to U.S. Government employees. The indexes are published for all locations for which reliable indexes are computed regularly.
The indexes are place-to-place comparisons at specific times and currency exchange rates. They cannot be used for measuring cost changes over time at a foreign location. Also, the indexes should not be used to compare living costs of Americans in the United States with the living costs of foreign nationals living in their own country, since the indexes reflect only the expenditure pattern and living costs of American families.
Quarters Allowances
The quarters allowances (Table 2) are the maximum allowances payable to U.S. Government employees to cover housing costs at the foreign location. Employees recruited in the United States to work abroad for the U.S. Government may receive either free government housing or an allowance to substantially cover the cost of privately rented housing. The allowance payable to a Federal civilian employee is either the amount of actual housing costs or the maximum allowance, whichever is less.
Department of State Publication 10197
Bureau of Administration
Office of Allowances
Revised October 1997
The quarters allowance reimburses Federal employees for rent; electricity, gas, fuel, and water; taxes and insurance premiums required by local law or custom to be paid by the tenant; and the agent's fee incurred by the landlord and required by law or custom to be paid by the tenant as a condition of obtaining a lease. The allowance may also be used to cover some of the costs for garage rent and necessary furniture rental.
Quarters allowances are established on the basis of annual expenditure reports submitted by all U.S. Government civilian employees in private housing abroad. Maximum allowances are established for employees of various Federal grade levels and family sizes. For publication purposes, approximate salary levels for each Federal grade level are indicated in Table 2. The family rate shown in the table is for an employee with one family member. The additional amounts for larger families are described in footnote 4 to Table 2. The quarters data are published for selected locations. The allowance rates established at the time of the annual survey are designed to fully reimburse approximately 80 percent of the employees in the sample for all allowable rent and household utility expenditures.
Post (Hardship) Differentials
Post differentials (Table 3) are provided to Federal employees, recruited in the United States, as foreign area recruitment and retention incentives. A differential is established where living conditions for U.S.G. employees are extraordinarily difficult, physical hardships are excessive, or living conditions are notably unhealthful.
The differential rate for each location is based primarily on a standard evaluation of environmental conditions as reported in the Post Differential Questionnaire. The overall rating results from an examination of 150 specific environmental factors, weighted for their relative importance. Depending on the total hardship rating, employees are paid post differentials of 5, 10, 15, 20, or 25 percent of base salary. The maximum amount that Federal employees can currently receive as combined annual base salary and hardship differential is $133,600. Any post differential paid Federal employees is subject to Federal income tax.
Danger Pay Allowances
A danger pay allowance may be paid Federal civilian employees where civil insurrection, civil war, terrorism, or wartime conditions threaten physical harm or pose imminent danger to the health or well-being of the employee. Locations authorized danger pay allowances are identified by footnotes in Table 3. Conditions that may warrant a danger pay determination are reported in the Danger Pay Factors Form. Depending upon the level of danger, levels of 15, 20, and 25 percent of base salary are authorized.
Danger pay allowances may be paid to employees on temporary detail at a danger pay location for at least 4 consecutive hours. The danger pay allowance paid Federal employees is subject to Federal income tax.
Technical Information
Technical notes on pages 1417 of this publication describe the compensation of American Government employees in foreign areas. Notes on pages 1718 explain how the indexes of living costs abroad may be used to adjust a U.S. salary level for higher living costs abroad. Technical questions may be directed to the Office of Allowances, SA29, Room 262, U.S. Department of State, Washington, D.C. 20522-2902 Telephone: (703) 875-7900.
Table 1. Indexes of Living Costs Abroad, October 1997 (Washington, D.C. = 100)
Exchange Rate 1 Local 2 U.S.Government 3
Country and City Survey Foreign Number
Date Unit per US$ Relative Index Relative Index
Algeria: Algiers Jul-94 Dinar 37.7 84 89 81 91
7
Angola: Luanda Apr-97 Kwanza 200,000 167 178 123 126
Argentina: Buenos Aires Nov-96 Peso 1.00 124 134 112 123
Armenia: Yerevan Oct-95 Dram 408 93 97 84 88
Australia: Canberra Jan-97 Dollar 1.23 132 133 116 117
Sydney Oct-95 Dollar 1.31 125 123 116 115
Austria: Vienna Mar-96 Schilling 10.1 169 160 137 132
Azerbaijan: Baku Oct-95 Manat 4,560 100 102 86 88
Azores: Ponta Delgada Mar-97 Escudo 171 10 106 95 95
Bahamas: Freeport Jun-95 Dollar 1.00 135 136 122 123
Nassau Dec-96 Dollar 1.00 132 134 121 122
Bahrain: Manama Apr-97 Dinar 0.3769 103 112 94 103
Bangladesh: Dhaka Feb-97 Taka 42.5 77 81 74 82
Barbados: Bridgetown Mar-97 Dollar 2.00 141 143 126 127
Belarus: Minsk Feb-96 Ruble 11,500 103 106 98 100
Belgium: Brussels Dec-96 Franc 31.9 155 151 128 128
Shape/ Chievres Sep-96 Franc 30.5 137 139 109 110
Belize: Belize City Aug-96 Dollar 2.00 107 118 90 100
Benin: Cotonou Aug-95 CFA Franc 480 92 100 86 93
Bermuda Mar-97 Dollar 1.00 154 155 135 135
Bolivia: La Paz May-97 Boliviano 5.23 84 90 78 84
Botswana: Gaborone Jan-97 Pula 3.66 82 87 80 86
Brazil: Brasilia Nov-96 Real 1.0150 130 133 110 113
Rio de Janeiro Nov-96 Real 1.0150 132 138 119 125
Sao Paulo Nov-96 Real 1.0150 154 146 134 125
Brunei: Bandar Seri
Begawan May-96 Dollar 1.40 113 130 107 123
Bulgaria: Sofia Jul-94 Leva 53.9 79 84 85 91
Burkina: Ouagadougou Apr-95 CFA Franc 52 114 125 96 105
Burma: Rangoon Mar-97 Kyat 164 83 94 75 86
Burundi: Bujumbura Oct-96 Franc 317 149 148 125 122
Cambodia: Phnom Penh Feb-94 Riel 2,500 86 87 82 83
Cameroon: Yaounde Oct-96 CFA Franc 514 114 127 100 113
Canada: Halifax Mar-96 Dollar 1.35 108 108 101 101
Ottawa Dec-96 Dollar 1.34 101 102 99 99
Cape Verde: Praia Jul-93 Escudo 81.1 94 101 85 91
Cent. African Rep.:Bangui Nov-95 CFA Franc 490 127 136 110 118
Chad: N'Djamena Jan-96 CFA Franc 495 130 141 113 120
Chile: Santiago May-96 Peso 407 113 120 104 112 5 5
China: Beijing Oct-96 Renminbi 8.30 126 131 101 107
Guangzhou Feb-96 Renminbi 8.29 115 107 108 100
Shanghai May-96 Renminbi 8.31 110 113 100 104
Colombia: Bogota Jun-97 Peso 1079 109 113 98 102
Congo: Brazzaville Oct-96 CFA Franc 514 165 176 126 135
Congo, Dem. Republic of:
Kinshasa Jul-95 New Zaire 6,013 189 204 134 148
Costa Rica: San Jose Jul-95 Colon 178 84 88 78 82
Cote d'Ivoire: Abidjan Sep-96 CFA Franc 509 112 118 96 102
Croatia: Zagreb Feb-97 Kuna 5.80 116 116 109 108
5 5
Cuba: Havana Jun-96 Dollar 1.00 114 123 104 112
Cyprus: Nicosia Apr-95 Pound 0.5094 115 116 95 97
Czech Republic: Prague Sep-96 Koruna 26.6 110 106 99 96
Denmark: Copenhagen Aug-95 Kroner 5.38 181 177 146 142
Djibouti: Djibouti City Jul-96 Franc 177 151 164 128 138
Dominican Republic:
Santo Domingo Mar-97 Peso 14.4 108 117 98 105
Ecuador: Quito Dec-96 Sucre 3,335 83 88 83 88
Egypt: Cairo Jun-96 Pound 3.40 82 99 73 91
El Salvador:
San Salvador Apr-96 Colon 8.76 85 93 81 89
Eritrea: Asmara Oct-95 Birr 6.25 83 93 81 91
Estonia: Tallinn Jul-95 Kroon 11.2 105 106 88 90
Ethiopia: Addis Ababa Mar-97 Birr 6.24 102 111 86 95
Fiji: Suva Dec-96 Dollar 1.40 108 116 103 111
Finland: Helsinki Apr-97 Markka 5.14 150 149 123 123
France: Paris Mar-97 Franc 5.57 165 152 139 128
Gabon: Libreville Feb-97 CFA Franc 539 154 172 119 134
Gambia: Banjul Apr-96 Dalasi 9.8 103 110 92 99
Georgia: Tbilisi Jan-97 Lari 1.2 114 119 100 105
Germany: Berlin Jul-96 Mark 1.49 156 151 137 134
Bonn Jul-96 Mark 1.49 140 144 119 118
Frankfurt Apr-97 Mark 1.64 150 148 122 121
Hamburg May-95 Mark 1.37 164 157 140 136
Munich Jun-96 Mark 1.49 158 149 133 130
Ghana: Accra May-97 Cedi 1925 99 108 91 99
Greece: Athens Nov-96 Drachma 239 136 136 113 113
Kavala Relay Sta. Mar-97 Drachma 265 108 108 94 94
Thessaloniki Dec-95 Drachma 237 124 126 106 107
Grenada Oct-95 Dollar 2.70 111 120 97 107
Guatemala: Guatemala City Aug-95 Quetzal 5.76 100 107 91 99
Guinea: Conakry Jul-96 Franc 999 144 154 113 121
5 5
Guinea-Bissau: Bissau Jan-97 Peso 34,391 107 113 94 100
Guyana: Georgetown Jun-94 Dollar 140 77 81 77 83
Haiti: Port-au-Prince Oct-96 Gourde 15.1 102 108 89 94
Honduras: Tegucigalpa Jan-97 Lempira 13.05 74 79 71 76
Hong Kong Apr-96 Dollar 7.73 146 135 129 118
Hungary: Budapest Apr-97 Forint 176 102 98 92 89
Iceland: Reykjavik Dec-96 Kronur 66.2 154 156 114 114
India: New Delhi Dec-95 Rupee 34.7 78 83 82 87
Indonesia: Jakarta Jul-96 Rupiah 2,316 106 114 97 104
Ireland: Dublin Dec-95 Pound 0.6201 148 142 118 118
Israel: Tel Aviv May-96 New Shekel 3.09 153 155 118 118
Italy: Milan Jul-96 Lira 1,531 178 169 143 139
Naples Oct-95 Lira 1,602 138 140 109 109
Rome May-96 Lira 1,553 149 145 129 126
Jamaica: Kingston Jun-96 Dollar 40.1 104 111 94 100
Japan: Fukuoka Jan-97 Yen 111 177 172 151 149
Gotemba (Camp Fuji)Feb-96 Yen 104 170 172 129 131
Kobe-Osaka Mar-97 Yen 119 186 176 161 155
Misawa Feb-96 Yen 102 182 183 112 113
Okinawa Jan-97 Yen 112 169 169 122 121
Sapporo Apr-97 Yen 119 179 176 160 158
Tokyo Mar-97 Yen 119 180 172 142 139
Yokohama Mar-96 Yen 104 212 212 124 126
Yokosuka Jan-97 Yen 111 172 168 132 130
Yokota Jan-97 Yen 111 158 155 124 123
Jerusalem Apr-96 New Shekel 3.09 139 142 119 121
Jordan: Amman Apr-96 Dinar 0.7107 110 119 88 98
Kazakhstan: Almaty Jul-96 Tenge 67.2 148 156 107 108
Kenya: Nairobi May-96 Shilling 57.6 109 120 94 104
Korea: Seoul Jun-96 Won 762 150 147 99 103
Kuwait: Kuwait City Oct-95 Dinar 0.2983 113 123 99 111
Kyrgyzstan: Bishkek Nov-96 Som 14.6 113 121 101 108
Laos: Vientiane Mar-96 Kip 925 94 119 89 115
Latvia: Riga Nov-96 Lats 0.5457 109 126 93 110
Lebanon: Beirut Oct-92 Pound 2,335 85 94 80 90
Lesotho: Maseru May-96 Maloti 4.35 78 78 77 78
Liberia: Monrovia Aug-97 Dollar 1.00 132 140 102 108
Lithuania: Vilnius May-95 Litas 3.98 126 128 107 109
Luxembourg: Luxembourg Mar-97 Franc 34.8 126 128 118 118
Macedonia, Former Yugoslav
Republic of: Skopje Apr-95 Denar 36.8 120 117 108 103
Madagascar: Antananarivo Jan-97 Franc 4,353 94 101 80 86
Malawi: Lilongwe Jun-96 Kwacha 15.21 95 100 79 84
Malaysia: Kuala Lumpur Apr-97 Ringgit 2.48 110 120 94 105
Mali: Bamako Nov-95 CFA Franc 496 109 118 94 101
Malta Apr-96 Lira 0.3586 116 118 104 106
Marshall Islands: Majuro Mar-96 Dollar 1.00 117 120 112 115
Mauritania: Nouakchott Nov-96 Ouguiya 138 137 153 108 121
Mauritius: Port Louis Jan-97 Rupee 19.8 98 105 85 92
Mexico: Mexico, D.F. May-95 Peso 5.83 85 87 85 87
Monterrey Jan-94 Peso 3.10 106 112 99 105
Micronesia: Pohnpei Jul-95 Dollar 1.00 96 99 95 98
Moldova: Chisinau Oct-95 Leu 4.47 83 85 80 82
Morocco: Casablanca Sep-94 Dirham 8.92 108 109 94 96
Rabat Jul-96 Dirham 8.76 108 109 89 89
Mozambique: Maputo Oct-96 Metical 11,230 117 126 97 106
Namibia: Windhoek Oct-96 Rand 4.52 94 95 90 90
Nepal: Kathmandu Dec-93 Rupee 49 82 88 81 87
Netherlands: The Hague Feb-97 Guilder 1.84 144 141 123 123
Brunssum Jan-96 Guilder 1.61 137 139 105 105
Netherlands Antilles:Aruba Mar-94 Florin 1.78 109 113 105 108
Curacao Aug-94 Florin 1.78 119 121 101 103
New Zealand: Wellington Nov-96 Dollar 1.43 124 125 110 111
Nicaragua: Managua Mar-97 Cordoba 9.11 100 110 93 103
Niger: Niamey Jul-96 CFA Franc 516 122 135 100 113
Nigeria: Abuja Dec-96 Naira 80.1 109 113 97 101
Lagos Jan-97 Naira 78.8 106 112 90 98
Norway: Oslo Sep-96 Kroner 6.41 185 184 148 149
Oman: Muscat Jul-96 Rial 0.3849 117 126 102 111
Pakistan: Islamabad Apr-97 Rupee 40.1 83 96 76 89
Palau, Republic of: Koror Mar-94 Dollar 1.00 98 102 96 101
Panama: Panama City Aug-96 Balboa 1.00 88 94 87 92
Papua New Guinea:
Port Moresby Jan-97 Kina 1.34 136 146 118 125
Paraguay: Asuncion Dec-95 Guarani 1,964 109 111 99 101
Peru: Lima Nov-96 New Sol 2.55 120 126 107 113
Philippines: Manila May-96 Peso 26.2 97 106 90 99
Poland: Warsaw Mar-97 New Zloty 3.04 102 109 89 96
Portugal: Lisbon Mar-97 Escudo 170 123 122 105 105
Qatar: Doha Oct-96 Riyal 3.62 98 107 93 103
6
Romania: Bucharest Mar-95 Leu 1,819 N/A N/A 91 95
7 7
Russia: Moscow Apr-96 Ruble 4,900 144 147 115 118
St. Petersburg Jan-97 Ruble 5,505 153 154 123 124
Vladivostok Aug-95 Ruble 4,400 112 116 102 106
Yekaterinburg Sep-96 Ruble 5,300 112 118 98 103
Rwanda: Kigali May-97 Franc 306 117 126 94 103
Saudi Arabia:
Al Khobar (Dhahran) Aug-96 Riyal 3.75 129 144 108 119
Jeddah Nov-95 Riyal 3.75 106 118 95 108
Riyadh Jul-96 Riyal 3.75 129 147 105 124
Senegal: Dakar Dec-96 CFA Franc 510 127 134 109 115
Serbia-Montenegro:Belgrade Apr-95 New Dinar 2.39 126 128 93 93
Seychelles: Victoria Oct-95 Rupee 4.91 140 159 107 122
Sierra Leone: Freetown Jan-97 Leone 960 115 124 101 110
Singapore Jun-96 Dollar 1.41 127 137 111 122
Slovakia: Bratislava Jun-94 Korun 32.5 90 89 83 82
Slovenia: Ljubljana Jan-97 Tolar 141 118 118 104 103
South Africa: Cape Town Oct-95 Rand 3.65 93 95 85 86
Johannesburg Oct-95 Rand 3.65 101 101 97 97
Pretoria Nov-95 Rand 3.66 97 97 95 94
Spain: Barcelona Jun-96 Peseta 128 143 139 129 125
Madrid Jan-97 Peseta 131 142 133 126 118
Sri Lanka: Colombo Feb-97 Rupee 56.8 104 109 91 96
Sudan: Khartoum Feb-95 Pound 430 107 118 92 104
Suriname: Paramaribo Aug-96 Guilder 398 90 95 84 90
Swaziland: Mbabane May-93 Rand 3.20 88 96 82 90
Sweden: Stockholm Apr-97 Kroner 7.63 169 161 141 133
Switzerland: Geneva Jun-96 Franc 1.19 186 185 169 167
Syria: Damascus Nov-96 Pound 42.0 103 112 92 101
8 8
Taiwan: Kaohsiung Mar-93 Dollar 26.0 130 135 118 124
8 8
Taipei Feb-97 Dollar 27.4 140 143 117 120
6 6
Tajikistan: Dushanbe Aug-94 Ruble 1,500 N/A N/A 100 91
Tanzania: Dar es Salaam Jan-97 Shilling 596 119 130 93 103
Thailand: Bangkok Apr-95 Baht 24.8 97 105 88 96
Togo: Lome Jun-96 CFA Franc 515 106 119 93 106
Trinidad/Tobago:
Port-of-Spain Aug-93 Dollar 5.58 94 100 85 92
Tunisia: Tunis May-96 Dinar 0.97 107 113 98 104
Turkey: Istanbul Nov-96 Lira 92,567 130 135 112 117
Turkmenistan: Ashgabat Mar-97 Manat 5,250 102 109 102 108
Uganda: Kampala Nov-96 Shilling 923 142 153 102 111
Ukraine: Kiev Jan-97 Hryvnia 1.7 128 132 107 111
United Arab Emirates:
Abu Dhabi Mar-97 Dirham 3.65 99 112 94 108
Dubai Jun-96 Dirham 3.65 109 118 102 111
United Kingdom: Belfast May-96 Pound 0.6438 141 142 126 125
Bristol Aug-95 Pound 0.6317 132 132 112 113
Croughton Sep-95 Pound 0.6317 141 143 116 117
Gatwick Feb-95 Pound 0.6186 144 145 133 134
London Apr-97 Pound 0.5988 154 146 132 128
Loudwater Jul-95 Pound 0.6073 147 148 122 123
Rochester Jul-95 Pound 0.6110 145 145 136 136
Uruguay: Montevideo Oct-95 Peso 5.94 146 147 114 116
Uzbekistan: Tashkent Mar-97 Som 55.8 120 123 101 104
Venezuela: Caracas Feb-97 Bolivar 472 99 109 86 95
Vietnam: Hanoi Mar-96 N Dong 11,000 98 103 95 100
Yemen: Sanaa Mar-96 Riyal 129.0 90 97 80 88
Zambia: Lusaka Aug-95 Kwacha 941 99 120 95 116
Zimbabwe: Harare Jul-93 Dollar 6.62 73 78 68 74
1 The exchange rates shown are those used to calculate the indexes. They are usually the rates available to American citizens during the survey month. Current exchange rates may differ from the rates shown. Interim indexes adjusted for new exchange rates are not published. See Technical Notes for an explanation of how the local indexes may be adjusted for changes in exchange rates.
2 The local relative and local index measure living costs for private American citizens. The local relative is a comparison of the prices of goods and services at the foreign post and in Washington, D.C., with the price ratios weighted by the pattern of expenditure in Washington, D.C. Consequently, the local relative is a comparison of price levels at the post and in Washington, D.C., but not necessarily a comparison of the cost of living abroad. The local index is a comparison of prices at the foreign post and in Washington, D.C., with the price ratios weighted by the expenditure pattern of American employees living at the foreign post. It is, thereby, a measure of the cost of living for Americans at the foreign post compared with the cost of living in Washington, D.C. This is the index most appropriate for use by business firms and other private organizations to establish costofliving allowances for their American employees stationed abroad.
3 The U.S. Government relative and index include prices of goods imported to the post and price advantages available only to U.S. Government employees. The U.S. Government relative is a comparison of price levels but not necessarily of living costs abroad because the expenditure weights reflect only the Washington, D.C. expenditure pattern. The U.S. Government index reflects Federal employee foreign expenditure patterns and is used to compute foreign post allowances for Federal employees.
4 New surveys since the July 1997 publication are in boldface.
5 Local relative and local index comparisons include prices in hard currency or diplomatic stores.
6 Insufficient local retail price data to develop meaningful local relative and local index living cost comparisons.
7 Most prices were reported in U.S. dollars.
8 There are no U.S. Government employees in Taiwan. The figures listed in this column represent a living cost comparison for American employees of the American Institute in Taiwan, who have some duty-free and other special benefits that may not be available to other Americans in Taipei.
Table 2. Quarters Allowances, October 1997
Annual Allowance by family
Exchange Rate 3 status and salary range
Country and City Survey Effective Foreign Number Family Less Than$33,000- $62,000
Date 2 Date Unit per US$ Status 4 $33,000 $61,999 & above
Australia: Melbourne Oct-97 Oct-97 Dollar 1.38 Family $17,300 $19,100 $20,100
Single 15,400 17,300 19,100
Azores: Lajes Field Sep-96 Dec-96 Escudo 152 Family 7,100 7,500 7,500
Single 6,100 7,100 7,500
Bahrain: Manama Apr-97 May-97 Dinar 0.3769 Family 21,700 24,100 24,100
Single 19,300 21,700 24,100
Barbados: Oct-97 Oct-97 Dollar 2.00 Family 20,200 22,400 25,900
Single 17,900 20,200 23,500
Belgium: Brussels May-97 Oct-97 Franc 36.1 Family 23,900 25,000 28,400
Single 20,800 23,900 25,000
Shape/Chievres Jul-97 Oct-97 Franc 36.1 Family 15,100 16,800 17,600
Single 13,500 15,100 16,800
Bermuda Dec-95 Oct-96 Dollar 1.00 Family 23,600 26,200 26,200
Single 21,900 21,900 24,800
Canada: Calgary Apr-97 Oct-97 Dollar 1.37 Family 16,200 17,800 18,400
Single 14,700 16,200 17,800
Montreal Apr-97 Oct-97 Dollar 1.37 Family 17,200 19,100 20,900
Single 16,600 17,200 20,200
Ottawa Apr-97 Jun-97 Dollar 1.36 Family 17,300 19,200 22,000
Single 15,400 17,300 20,200
Toronto Jan-97 Oct-97 Dollar 1.37 Family 21,000 23,400 25,700
Single 18,700 21,000 23,400
Vancouver Apr-97 Oct-97 Dollar 1.37 Family 16,100 16,900 20,500
Single 14,400 16,100 17,800
Dominican Republic:
Santo Domingo Mar-94 Apr-94 Peso 12.8 Family 11,000 13,700 14,400
Single 9,700 11,000 14,400
Ecuador: Quito Mar-97 Mar-97 Sucre 3,717 Family 16,100 17,900 21,800
Single 14,300 16,100 21,000
France: Paris Jun-97 Oct-97 Franc 5.75 Family 28,200 29,200 32,300
Single 23,100 26,100 30,600
Germany:Augsburg Jul-97 Oct-97 Mark 1.71 Family 15,900 17,600 18,500
Single 14,100 15,900 17,600
Berlin Jun-97 Oct-97 Mark 1.71 Family 20,900 24,900 25,600
Single 19,100 20,900 25,600
Bonn Jun-97 Oct-97 Mark 1.71 Family 16,400 18,600 19,600
Single 15,000 16,400 18,600
Frankfurt Apr-97 Oct-97 Mark 1.71 Family 20,800 23,300 24,400
Single 18,500 20,800 23,300
Hanau Apr-97 Oct-97 Mark 1.71 Family 16,900 18,800 19,800
Single 15,000 16,900 18,800
Heidelberg-
Mannheim Mar-96 Oct-97 Mark 1.71 Family 17,500 18,500 21,400
Single 14,900 17,500 20,700
Kaiserslautern Mar-96 Oct-97 Mark 1.71 Family 17,300 17,700 18,400
Single 14,400 17,300 17,700
Karlsruhe Jul-97 Aug-97 Mark 1.66 Family 16,300 18,200 19,100
Single 14,600 16,300 18,200
Leipzig May-95 Oct-97 Mark 1.71 Family 12,300 13,500 14,400
Single 10,800 12,300 13,900
Nuernberg Apr-97 Aug-97 Mark 1.66 Family 15,500 17,200 18,100
Single 13,800 15,500 17,200
Stuttgart Apr-97 Oct-97 Mark 1.71 Family 18,300 20,300 21,400
Single 16,300 18,300 20,300
Wiesbaden Mar-96 Oct-97 Mark 1.71 Family 18,000 21,700 22,600
Single 17,500 19,000 20,500
Greece: Athens Jan-97 Mar-97 Drachma 246 Family 15,300 17,000 17,000
Single 14,000 15,900 17,000
Guatemala:
Guatemala City Dec-96 Dec-96 Quetzal 6.02 Family 17,300 20,600 22,200
Single 16,500 17,300 18,800
Honduras: Tegucigalpa Apr-96 Mar-97 Lempira 11.14 Family 12,400 17,200 17,200
Single 12,000 14,200 16,600
Iceland: Keflavik Jun-96 Dec-96 Kronur 67.2 Family 12,300 13,500 13,500
Single 10,800 12,300 13,500
Italy: Brindisi Feb-97 Oct-97 Lira 1,709 Family 6,500 8,100 8,100
Single 6,500 8,100 8,100
Catania Mar-97 Jun-97 Lira 1,603 Family 13,700 15,200 15,900
Single 12,200 13,700 15,900
Leghorn Jun-97 Jul-97 Lira 1,682 Family 14,200 15,800 16,600
Single 12,600 14,200 15,800
Naples Aug-97 Oct-97 Lira 1,709 Family 16,700 18,600 19,500
Single 14,800 16,900 18,600
Pordenone
-Aviano Aug-97 Oct-97 Lira 1,709 Family 12,900 14,200 14,900
Single 11,400 12,900 14,200
Rome Mar-97 Oct-97 Lira 1,709 Family 28,300 31,400 33,000
Single 25,100 28,300 33,000
Vicenza Aug-97 Oct-97 Lira 1,709 Family 13,000 14,300 15,000
Single 11,500 13,000 14,300
Japan: Misawa May-97 Oct-97 Yen 119 Family 22,200 24,700 25,800
Single 21,600 22,200 25,800
Okinawa Jan-97 Oct-97 Yen 119 Family 20,000 22,300 23,400
Single 17,800 20,000 22,300
Tokyo City Feb-97 Oct-97 Yen 119 Family 53,800 66,200 66,200
Single 49,300 63,100 64,100
Tokyo-To May-97 Oct-97 Yen 119 Family 22,600 22,900 27,200
Single 20,600 22,600 24,000
Yokohama Jul-97 Oct-97 Yen 119 Family 23,100 25,200 26,900
Single 20,100 23,100 26,900
Yokosuka Jan-97 Oct-97 Yen 119 Family 21,100 22,900 23,900
Single 18,400 21,100 22,900
Korea: Osan May-96 Oct-96 Won 771 Family 15,500 16,200 16,200
Single 15,000 15,500 16,200
Pusan May-97 Jul-97 Won 832 Family 19,300 21,400 21,400
Single 17,100 19,300 21,400
Seoul Aug-96 Nov-96 Won 766 Family 29,000 29,800 29,800
Single 28,800 29,000 29,800
Taegu May-97 Sept-97 Won 881 Family 19,200 21,300 22,400
Single 17,000 19,200 21,300
Uijongbu Aug-97 Sept-97 Won 876 Family 20,200 22,400 23,500
Single 17,900 20,200 22,400
Luxembourg Feb-97 Oct-97 Franc 36.1 Family 22,400 24,300 29,500
Single 20,500 23,000 24,300
Mexico: Mexico, D.F. May-95 Jul-95 Peso 6.36 Family 30,800 34,100 37,500
Single 27,300 30,800 35,800
Netherlands: Brunssum Jan-97 Oct-97 Guilder 1.97 Family 15,200 16,400 16,400
Single 13,900 15,200 16,000
The Hague Jun-97 Oct-97 Guilder 1.97 Family 26,300 29,000 32,100
Single 23,100 26,300 27,600
Norway: Oslo Jun-97 Oct-97 Kroner 7.01 Family 18,500 21,800 23.100
Single 17,600 18,500 21,800
Panama: Panama City Apr-97 Jul-97 Balboa 1.00 Family 24,400 26,000 27,300
Single 20,800 24,400 26,000
Paraguay: Asuncion Oct-95 Nov-95 Guarani 1,968 Family 19,200 21,300 21,900
Single 17,000 19,200 21,900
Peru: Lima Feb-97 Mar-97 New Sol 2.63 Family 24,600 27,300 27,300
Single 21,800 24,600 25,400
Portugal: Lisbon Jun-97 Oct-97 Escudo 178 Family 26,900 29,900 32,800
Single 23,800 26,900 31,300
Singapore Mar-97 Oct-97 Dollar 1.52 Family 32,300 36,600 38,900
Single 29,200 32,300 37,200
Spain: Madrid Nov-96 Oct-97 Peseta 149 Family 22,200 25,000 29,200
Single 20,100 22,200 25,000
Rota Oct-96 Oct-97 Peseta 149 Family 13,400 16,100 16,100
Single 12,500 13,400 16,100
Torrejon Apr-97 Oct-97 Peseta 149 Family 14,100 15,800 18,200
Single 12,700 14,100 16,500
Switzerland: Bern Jul-97 Oct-97 Franc 1.41 Family 27,600 30,600 33,400
Single 24,500 27,600 30,600
Geneva May-97 Oct-97 Franc 1.41 Family 34,900 39,000 46,300
Single 31,100 34,900 39,000
Thailand: Bangkok May-97 Oct-97 Baht 36.5 Family 12,400 14,500 14,900
Single 11,400 12,400 14,500
Turkey: Adana-Incirlik Aug-97 Aug-97 Lira 153,500 Family 8,100 9,800 10,100
Single 7,800 8,100 9,800
Ankara Aug-97 Aug-97 Lira 153,500 Family 12,000 13,300 14,600
Single 11,000 12,000 14,000
Izmir-Cigli Sep-96 Dec-96 Lira 86,123 Family 11,100 12,300 13,500
Single 9,800 11,100 12,300
United Kingdom:
Cheltenham Jan-97 Oct-97 Pound 0.6024 Family 14,300 16,000 17,600
Single 12,900 14,300 16,800
Chicksands Mar-95 Oct-97 Pound 0.6024 Family 13,800 16,100 16,100
Single 12,700 13,800 15,100
Harrogate Apr-96 Oct-97 Pound 0.6024 Family 15,800 19,700 21,100
Single 14,900 15,800 20,600
Lakenheath Jan-97 Oct-97 Pound 0.6024 Family 16,200 18,000 19,800
Single 14,300 16,200 18,800
London Jun-97 Oct-97 Pound 0.6024 Family 29,800 36,500 36,800
Single 29,100 32,900 36,500
Oxfordshire Dec-96 Oct-97 Pound 0.6024 Family 14,500 16,400 16,400
Single 13,200 14,500 16,400
1 The allowance figures shown in the table are the maximum allowances payable. The quarters allowance paid to each eligible government employee is either the amount of actual expenditures for rent and utilities or the allowance maximum, whichever is less.
2 The survey date is the month when the employee housing expenditure reports were received by the Office of Allowances. The effective date is the month when either (a) allowances were revised on the basis of employee housing expenditure reports, or (b) the allowances were revised solely for changes in currency exchange rates, or (c) existing allowances were reviewed and found to be appropriate.
3 The exchange rate is the rate used to compute the quarters allowances as of the effective date.
4 Quarters allowances are computed for single persons and 2-person families. Employees with larger families living with them at post receive supplements of 10, 20, or 30 percent of the 2person allowance (for families of 3 to 4 persons, 5 to 6 persons, or 7 or more persons, respectively).
5 The quarters allowances for Tokyo To refer to housing in the Tokyo suburbs.
Table 3. Hardship Differentials, October 1997
1 2 1 2
Country and City Differential Country and City Differential
Rate Percent Rate Percent
Afghanistan: Kabul 25 Fiji: Suva 5
Albania: Tirana 15 Gabon: Libreville 15
Algeria: Algiers 25 Gambia: Banjul 20
Angola: Luanda 25 Georgia: Tbilisi 25
Armenia: Yerevan 25 Ghana: Accra 15
Azerbaijan: Baku 25 Greece: Athens 5
Bahrain 5 Grenada 10
Bangladesh: Dhaka 20 Guatemala : Guatemala City 10
Belarus: Minsk 20 Guinea: Conakry 25
Belize: Belize City 10 Guinea-Bissau: Bissau 25
Benin: Cotonou 15 Guyana: Georgetown 20
Bolivia: La Paz 15 Haiti: Port-au-Prince 25
Bosnia-Herzegovina: Sarajevo 25 Honduras: Tegucigalpa 10
Brazil: Recife 5 India: Calcutta 20
Brunei: Bandar Seri Begawan 15 Chennai (Madras) 15
Bulgaria: Sofia 15 Mumbai (Bombay) 15
Burkina: Ouagadougou 20 New Delhi 10
Burma: Rangoon 25 Indonesia: Jakarta 10
Burundi: Bujumbura 20 Medan 15
Cambodia: Phnom Penh 25 Surabaya 15
Cameroon: Dschang 15 Iraq: Baghdad 20
Yaounde 20 Jamaica: Kingston 10
Cape Verde: Praia 20 Jerusalem 5
Central African Rep.: Bangui 25 Jordan: Amman 5
Chad: N'Djamena 25 Kazakhstan: Almaty 20
China: Beijing 15 Kenya: Nairobi 10
Chengdu 25 Korea: Kunsan 5
Guangzhou 20 Osan 5
Shanghai 15 Taegu 5
Shenyang 25 Uijongbu 5
Colombia: Barranquilla 10 Korea, Dem. People's Rep. of:
Bogota 5 Pyongyang 25
Kuwait: Kuwait City 15 Kyrgyzstan: Bishkek 25
Congo: Brazzaville 25 Laos: Vientiane 25
Congo, Dem. Rep. of: Kinshasa 20 Latvia: Riga 10
Cote d'Ivoire: Abidjan 15 Lebanon: Beirut 25
Croatia: Zagreb 5 Lesotho: Maseru 10
Cuba: Havana 20 Liberia: Monrovia 25
Djibouti: Djibouti City 15 Lithuania: Vilnius 10
Dominican Rep.: Santo Domingo 10 Macedonia, The Former Yugoslav
Ecuador: Guayaquil 10 Republic of: Skopje 15
Quito 10 Madagascar: Antananarivo 15
Egypt: Alexandria 15 Malawi: Lilongwe 15
Cairo 10 Mali: Bamako 25
El Salvador: San Salvador 15 Malta 5
Eritrea: Asmara 20 Marshall Islands: Majuro 10
Estonia : Tallinn 10 Mauritania: Nouakchott 20
Ethiopia: Addis Ababa 20 Mauritius 5
[See footnotes at end of table]
Mexico: Merida 5 Samoa 10
Mexico, D.F. 10 Saudi Arabia: Dhahran Area 20
Micronesia, Fed. States: Pohnpei 15 Jeddah 20
Moldova: Chisinau 15 Riyadh 20
Mongolia: Ulaanbaatar 25 Senegal: Dakar 15
Mozambique: Maputo 20 Serbia-Montenegro: 15
Nepal: Kathmandu 20 Sierra Leone: Freetown 25
Nicaragua: Managua 10 Somalia: Mogadishu 20
Niger: Niamey 20 Sri Lanka: Colombo 15
Nigeria: Abuja 25 Sudan: Khartoum 25
Kaduna 25 Suriname: Paramaribo 15
Lagos 25 Syria: Damascus 15
Oman: Muscat 5 Tajikistan: Dushanbe 25
Pakistan: Islamabad 15 Tanzania: Dar es Salaam 15
Karachi 15 Thailand: Bangkok 10
Lahore 20 Chiang Mai 10
Peshawar 25 Songkhla 15
Palau, Republic of: Koror 10 Udorn 15
Papua New Guinea: Port Moresby 25 Togo: Lome 20
Paraguay: Asuncion 5 Trinidad/Tobago: Port of Spain 5
Peru: Lima 10 Tunisia: Tunis 5
Philippines: Cebu 15 Turkey: Adana-Incirlik 5
Manila 10 Ankara 5
Poland: Krakow 10 Istanbul 5
Warsaw 10 Izmir-Cigli 5
Qatar: Doha 5 Turkmenistan: Ashgabat 20
Romania: Bucharest 15 Uganda: Kampala 25
Russia: Khabarovsk 20 Ukraine: Kiev 15
Moscow 10 Uzbekistan: Tashkent 25
Saint Petersburg 15 Venezuela: Caracas 5
Vladivostok 25 Vietnam: Hanoi 25
Yekaterinberg 25 Yemen: Sanaa 25
Rwanda: Kigali 25 Zambia: Lusaka 10
1 Changes since the July 1997 publication are in boldface.
2 In addition to the differential rate shown, employees in Algeria; Bosnia-Herzegovina (except Sarajevo); Burundi and the Great Lakes region of Africa (except Kinshasa); Vukovar area of Croatia; Iraq; Lebanon; and Somalia receive a 25 percent "danger pay" allowance, employees in Albania; Sarajevo, Bosnia-Herzegovina; Cambodia; Central African Republic; Karachi, Pakistan; and Chechnya Province of Russia receive a 20 percent "danger pay" allowance, and employees in Colombia; Kinshasa, Dem. Republic of the Congo; Liberia; Peru; Sudan; and Tajikistan receive a 15 percent "danger pay" allowance.
Note:The cities listed in the table are selected important posts, including all capital cities, where hardship differentials are paid. A complete listing of locations with hardship differential for Federal civilian employees can be found in Section 920 of the Department of State Standardized Regulations (Government Civilians, Foreign Areas), available from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402.
TECHNICAL NOTES FOR OCTOBER 1997
PART A - THE COMPENSATION OF AMERICAN GOVERNMENT EMPLOYEES IN FOREIGN COUNTRIES
The U.S. Department of State publishes indexes of living costs abroad, quarters allowances, and hardship differentials in January, April, July, and October of each year. These data are published for use by private organizations in establishing compensation systems for their American employees assigned abroad.
The U.S. Government foreign area compensation program covers more than 40,000 U.S. citizen civilian employees at approximately 600 posts abroad. Allowances data and other information from this program are widely used by private business firms and government contractors in developing and maintaining their own foreign compensation programs. This summary of the U.S. Government program is provided to assist users of government data in understanding more fully the overall compensation program.
As in the private sector, many Federal employees travel abroad as part of their normal work requirements. These employees are on temporary detail and receive reimbursements for necessary transportation expenses. They also receive a travel per diem allowance to cover the cost of reasonable lodgings, meals, and incidental travel expenses. These temporary assignments are expected to be relatively short, and the travel expenses of family members are not normally reimbursed by the government.
Federal employees assigned to positions overseas receive the same base salaries as employees in comparable positions in the United States. Foreign assignments may vary in duration but generally are for at least 2 years. The government compensation system for civilian personnel assigned abroad is composed of foreign service premiums and several costofliving allowances, in addition to base salary.
Foreign Service Premiums
The U.S. Government provides recruitment and retention of service incentives in the form of housing cost savings and post differentials. The government provides either free housing or a living quarters allowance to compensate employees for housing costs. Since employees are thereby saved normal housing costs, this saving serves as a worldwide Foreign Service premium.
The government also pays a post differential (commonly called the hardship differential) to employees at those posts where living conditions are extraordinarily difficult, physical hardships are excessive, or conditions are notably unhealthy. The differential can be saved or spent by employees to help offset conditions at the post or to get away from the post for a temporary change in environment. It serves as an incentive in recruiting and retaining personnel for the more difficult locations abroad. Approximately one third of all U.S. Government posts abroad qualify for a post differential.
The post differential for each post is established on the basis of a standard evaluation of environmental conditions. The evaluation procedure consists of the collection of information concerning post conditions, primarily from a Post Differential Questionnaire, and the rating of the post for 121 specific environmental factors, weighted for relative importance. Depending on the total hardship rating, employees at qualifying posts are paid differentials of 5, 10, 15, 20, or 25 percent of base pay.
Both the housing benefit and the post (hardship) differential are intended as financial incentives for the acceptance of foreign assignments. Therefore, these benefits are provided only to American employees whose foreign residence is attributable directly to their employment by the U.S. Government.
A danger pay allowance is paid to Federal civilian employees assigned (or on temporary detail) at locations where conditions of civil insurrection, civil war, or terrorism threaten physical harm or imminent danger to the health or well-being of the employee. Depending upon the level of danger, the danger pay allowance is paid at a rate of 15, 20, or 25 percent of the employee's base salary.
The U.S. Government living quarters, post differential, and danger pay allowance programs were described in some detail under the Technical Notes portions of the April and July 1997 publications.
Cost-of-Living Allowances
Compensation for the higher cost of living in foreign countries is provided by means of several allowances. The U.S. Government establishes a post (cost-of-living) allowance where the cost of goods and services is found to be significantly higher than in the Washington, D.C. area. The government also provides education and separate maintenance allowances as part of its foreign compensation program.
The U.S. Government provision of free housing or the living quarters allowance covers excessive foreign housing costs. Housing costs for a number of foreign locations are included in Table 2 of this publication. Private organizations generally reimburse employees only for foreign rent and utility costs higher than those in the United States. Statistics on U.S. housing costs are available from a number of published sources.
The U.S. Government establishes a post (cost-of-living) allowance for locations where goods and services, excluding housing and education, cost at least 3 percent more than in the Washington, D.C. area. Indexes of living costs for both Federal and private Americans residing abroad are listed in Table 1 of this publication. A detailed description of the methodology used to develop local and U.S. Government indexes of living costs abroad was included in the Technical Notes portion of the January 1997 publication.
The U.S. Government provides its employees abroad with either free schooling or an education allowance to cover the costs of adequate elementary and secondary education comparable to that provided without charge in public schools in the United States. Different allowances cover costs at local schools, boarding schools away from the post, home-study courses, or travel costs for attendance at schools in the United States for high school and college. Separate education allowance rates are also available for handicapped children.
Government employees are free to select any method of education and any school and are reimbursed for their costs up to an established maximum allowance rate. However, education allowances are not paid for a child in the United States who has a parent also residing in the United States. Maximum allowance rates for schools at post and away from the post are established on the basis of annual surveys of education costs.
The government education allowances for local schools abroad cover the average costs of tuition, books and supplies, and local transportation. Higher allowance rates are established for away from post schools only if schools within daily commuting distance are not adequate. The allowances for schools away from the post cover the average costs of tuition, books and supplies, room and board, and periodic transportation (usually three round trips annually) to adequate boarding schools. Expenditures for supplementary instruction in foreign languages or other necessary courses not offered at the school attended and expenditures for certain nonrefundable charges, such as registration fees, may also be reimbursed. When an employee chooses to use correspondence courses or private instruction to educate a child, a home-study allowance is paid to cover costs up to a maximum dollar amount. If an employee elects to send children to secondary schools in the United States, the government may pay, at employee option, either an education allowance or transportation costs for one round trip every 12 months. Educational travel is available for full-time students attending undergraduate college or vocational schooling in the United States limited to one round trip for each 12-month period.
A separate maintenance allowance is available under certain conditions to help offset some of the extra costs of maintaining a family away from a foreign post of assignment. This allowance can be authorized when an agency determines that dangerous, notably unhealthy, or excessively adverse conditions do not permit family members to live at a post abroad. This allowance is also available to employees who have special needs or family hardships relating to career, health, or educational considerations of family members. The allowance is based on the number of family members and is paid to the employee biweekly. The use of this benefit is generally less costly than the travel and other benefits that would otherwise be provided for the dependents abroad.
Relocation Allowances
The U.S. Government pays several allowances to compensate for the costs of moving to a new post, in addition to assuming most of the direct expenses, including transportation, the shipment of personal and household effects within certain weight limits, the shipment of one automobile per family, and the storage of possessions in the United States. Employees are paid per diem during travel and normally receive a temporary quarters subsistence allowance to assist in covering the average cost of adequate accommodations in a hotel, pension, or other transient-type quarters at a new post, plus reasonable meal and laundry expenses for a period up to 90 days upon arrival at a new post, or until settled in permanent housing, and for up to 30 days after moving out of permanent quarters before departure from the foreign post. A similar allowance is paid for up to 10 days before departure from the United States.
The government also pays a transfer allowance to reimburse employees for miscellaneous relocation and wardrobe expenses. The miscellaneous expenses portion of the allowance covers expenses attributable to the move, such as foreign auto registration and new driver's license, utility and appliance installation, power transformers for converting appliances to foreign electric currents, and other initial expenses of establishing a household abroad. Lump sum fixed amounts may be granted automatically; larger, itemized claims are reimbursed up to maximum amounts for single employees and employees with families. The wardrobe expense payment is made only when the move is between extreme climate zones, for example, from Moscow to the Philippines; the amount of payment varies with family size.
Employees may also request up to 3 months' advance of salary upon transfer to a foreign post. This enables employees to cover some of the immediate and extraordinary expenses incidental to a relocation to a foreign area.
Other Benefits
American government employees are generally provided home-leave benefits. Most Government agencies pay for round-trip airfares to home residences in the United States, usually after 2 or 3 years abroad, for employees and their families. The period of home leave earned varies from 1 to 3 weeks for each year abroad, depending on the employee's conditions of government service. This home leave time is in addition to normal annual and sick leave time provided to all Federal employees. Some employees at difficult locations, where vacations providing a change of environment are not available at reasonable cost, receive free travel to designated areas for rest and recuperation once or twice per tour of duty when home leave is not taken.
Employees of different government agencies serving in foreign areas are covered by a number of specific laws and regulations covering a broad range of benefits, emergency medical travel, family visitation or compassionate travel, compensation for the loss of personal property abroad, emergency evacuation, foreign death benefits, difficult language incentives, observance of foreign holidays, and early retirement and pension benefits. Some benefits are available to employees of one or more agencies but not to employees of other agencies.
Official residence and representation allowances are used to reimburse principal government representatives for unusual housekeeping costs and for expenses incurred in providing official entertainment and courtesies abroad.
Income Taxes and Social Security
The U.S. Government does not provide a tax equalization or foreign tax protection program for its American employees in foreign countries. Government employees assigned abroad pay U.S. income taxes on their base salaries, post differentials, and danger pay allowances; other allowances are excluded from Federal income taxation. They contribute the same percentage of their salaries to Social Security, Federal retirement plans, and Federal health insurance plans as government employees in the United States. They are not subject to foreign income or social security taxes.
Americans employed by business firms and other private organizations usually are subject to both foreign and U.S. income taxes but have a portion of their foreign earned income excluded from U.S. Federal income tax when they meet certain foreign residence requirements. Some foreign countries may provide special income tax concessions to Americans who reside and work in their country.
Information on the U.S. tax obligations of American citizens employed abroad is provided in the following Internal Revenue Service publications, revised annually: Tax Guide for U.S. Citizens and Resident Aliens Abroad (Publication No. 54), Foreign Tax Credit for Individuals (Publication No. 514), Tax Guide for Individuals with Income from U.S. Possessions (Publication No. 570), and Tax Information for U.S. Government Civilian Employees Stationed Abroad (Publication No. 516).
Information on foreign tax and social security obligations may be obtained from the appropriate foreign government. Information on the U.S. Social Security tax and Binational Social Security (Totalization) Agreements may be obtained from the United States Social Security Administration, Office of International Policy, P.O. Box 17741, Baltimore, MD 21235.
The U.S. Government Program
A basic foreign area allowances and benefits program is administered for all Federal U.S. citizen employees by the Department of State through the Standardized Regulations (Government Civilians, Foreign Areas). This program includes fifteen separate benefits related to allowances for foreign transfers, quarters, living costs, danger pay, education, and post differentials. Individual Federal agencies may issue additional implementing regulations to carry out this program for their employees. Revisions to the Department of State Standardized Regulations (Government Civilians, Foreign Areas) are published every 4 weeks and are available by subscription from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402.
Federal agencies provide for the travel, transportation, and the storage of household effects for civilian employees under various government regulations. These include the Federal Travel Regulations issued by the General Services Administration, the Joint Travel Regulations of the Department of Defense, and the Department of State Foreign Service Travel Regulations. These documents also contain regulations pertaining to the payment of travel per diem allowances for employees on official detail abroad. Maximum travel per diem allowances for foreign areas are published monthly as Section 925 of the U.S. Department of State Standardized Regulations (Government Civilians, Foreign Areas).
A number of other benefits, primarily for Civil Service employees, are included in Title 5, Part 591 of the Code of Federal Regulations. Certain benefits applicable only to members of the U.S. Foreign Service are included in Foreign Affairs Manuals issued by the Department of State.
PART B INDEXES OF LIVING COSTS ABROAD
Adjustment for Exchange Rate Changes
Department of State indexes of living costs abroad are computed at the currency exchange rate in effect as of the date of survey or index computation. Salaries and cost-of-living allowances for Americans employed abroad are generally established in U.S. dollars. For this reason, periodic allowance revisions for currency fluctuations are usually necessary to provide employees with the same purchasing power until new survey results are available and published. New survey indexes will reflect inflation abroad and in Washington, D.C., as well as more current exchange rate data. Foreign currency exchange rates are reviewed regularly by the Office of Allowances. When the exchange rate for a country has changed enough to alter the government post allowance, the U.S. Government index is recomputed and the post allowance appropriately revised. The Department of State does not publish these interim U.S. Government indexes or any comparable local index adjustments. Current post allowance levels for Federal civilian employees are published in Section 920 of the Department of State Standardized Regulations (Government Civilians, Foreign Areas). All indexes in Table 1 are original survey indexes computed by the Office of Allowances on the basis of Retail Price Schedule submissions.
The local index can be recomputed to approximate the effects of a new exchange rate by holding constant the 15 percentage points of the local index that represent consumer expenditures outside the foreign country of assignment. These items include some vacation expenses, automobile purchase, medical insurance, and household furnishings. The suggested recomputation method limits the exchange rate adjustment to those expenditures typically made in local currency. The following formula can be used to show approximately what the local index would have been at the original survey date had all prices been converted to U.S. dollars at the new exchange rate:
Suggested formula:
New local index =
15 + ( (local index - 15) X (local index exchange rate)/ (new exchange rate) )
Example:The December 1996 local index for Brussels is 151, at the exchange rate of Franc 31.9. The following calculations would be performed to recompute this index to Franc 35.4:
= 15 + ( (151-15) X (31.9/ 35.4) )
= 15 + (136 x 0.9011)
= 15 + 123
at Franc 35.4 = 138
For posts in countries with very high rates of inflation, allowances may not warrant a reduction for currency exchange rate changes. However, a substantial devaluation may require some interim allowance adjustment until a new price survey is received and reviewed.
The U.S. Government index cannot be recomputed using this simple formula because the government index generally reflects non-local currency purchases to a greater extent, and these costs must be held constant when adjusting for new exchange rates. The Office of Allowances recomputes the U.S. Government index by determining the exact proportion of total expenditures that are made in local currency and adjusting only that amount for the change in exchange rates. The resulting U.S. Government allowance levels are published in the Department of State Standardized Regulations (Government Civilians, Foreign Areas) every 4 weeks.
A complete and accurate interim allowance revision would require an index adjustment for: (1) the new exchange rate; (2) the probable effect of the revaluation on prices of imported goods purchased locally by Americans and on American purchasing patterns; and (3) price changes at the foreign post relative to price changes in Washington, D.C., since the last survey. The full effects of a currency revaluation are not immediately apparent and may not be known for several months. Furthermore, correction for relative price changes since the previous survey date cannot be made easily. Using the relative trends in national Consumer Price Indexes can produce an interim adjusted index significantly at variance with new survey results because survey items, expenditure weights, and retail outlets sampled for the national Consumer Price Index are not usually comparable to those for the American living cost measures. Under these circumstances, there are no truly reliable interim indexes of living costs until the foreign post completes a new Retail Price Schedule and the Office of Allowances computes new indexes.
The Payment of Cost-of-Living Allowances
The U.S. Government pays a cost-of-living allowance to its American civilian employees at foreign locations where the post allowance index is 103 or above.
The post allowance is calculated by applying the index to each employee's spendable income. Spendable income is defined by the Department of State as that portion of base salary available to an employee for the purchase of food, household operations, home furnishings and equipment (including telephone), apparel, transportation (including auto operations and purchase), health care, entertainment, personal care items, reading material, education, alcohol, tobacco, and miscellaneous goods and services.
To avoid minor adjustments in allowance payments, post allowance indexes are grouped into ranges, and the percentages to be applied to spendable income are based on the approximate midpoints of each index range. The percents applied to spendable income used by the government are shown in Table A.
The following example illustrates the necessary steps to determine a cost-of-living allowance for a family of three with an annual salary of $50,000, at a location with a local index of 158 (Washington, D.C. = 100):
(1) Percent to be applied to spendable income is 60 percent (Table A).
(2) Spendable income for a family of three at the $50,000 salary level is $24,600 (Table B).
(3) Annual cost-of-living allowance is 60 percent times $24,600 = $14,760.
Table A:Local Cost-of-Living Index and Percent Applied
| Local Index | Percent applied to spendabel income | Local Index | Percent applied to spendable income |
| 103-107 | 5 | 166-175 | 70 |
| 108-112 | 10 | 176-185 | 80 |
| 113-117 | 15 | 186-195 | 90 |
| 118-122 | 20 | 196-205 | 100 |
| 123-127 | 25 | 206-215 | 110 |
| 128-132 | 30 | 216-225 | 120 |
| 133-137 | 35 | 226-235 | 130 |
| 138-145 | 42 | 236-245 | 140 |
| 146-155 | 50 | 246-255 | 150 |
| 156-165 | 60 | 256-265 | 160 |
The spendable income table used by the Department of State, as of October 6, 1991, is shown in Table B. This table was developed by the Department of State, using consumer expenditure data for all urban U.S. families from Bureau of Labor Statistics data for 1987-88, with detailed tabulations for income ranges up to $90,000 and above.
Table B.Average Annual Spendable Income by Salary and Family Size
|
|
Number of Persons in Family |
||||||
|
Annual Base Salary |
One |
Two |
Three |
Four |
Five |
Six or More |
|
|
$139,000 and over |
$31,700 |
$35,600 |
$39,600 |
$41,600 |
$45,500 |
$47,500 |
|
|
132,000--138,900 |
31,600 |
35,500 |
39,500 |
41,500 |
45,400 |
47,400 |
|
|
125,000--131,999 |
31,400 |
35,300 |
39,200 |
41,200 |
45,100 |
47,000 |
|
|
118,000--124,999 |
31,000 |
34,800 |
38,700 |
40,600 |
44,500 |
46,400 |
|
|
112,000--117,999 |
30,600 |
34,400 |
38,200 |
40,100 |
43,900 |
45,800 |
|
|
106,000--111,999 |
30,000 |
33,800 |
37,500 |
39,400 |
43,100 |
45,000 |
|
|
100,000--105,999 |
29,400 |
33,100 |
36,800 |
38,600 |
42,300 |
44,200 |
|
|
95,000--99,999 |
28,800 |
32,400 |
36,000 |
37,800 |
41,400 |
43,200 |
|
|
90,000--94,999 |
28,200 |
31,700 |
35,200 |
37,000 |
40,500 |
42,200 |
|
|
85,000--89,999 |
27,400 |
30,900 |
34,300 |
36,000 |
39,400 |
41,200 |
|
|
80,000--84,999 |
26,600 |
30,000 |
33,300 |
35,000 |
38,300 |
40,000 |
|
|
75,000--79,999 |
25,800 |
29,000 |
32,200 |
33,800 |
37,000 |
38,600 |
|
|
71,000--74,999 |
25,000 |
28,100 |
31,200 |
32,800 |
35,900 |
37,400 |
|
|
67,000--70,999 |
24,200 |
27,200 |
30,200 |
31,700 |
34,700 |
36,200 |
|
|
63,000--66,999 |
23,400 |
26,300 |
29,200 |
30,700 |
33,600 |
35,000 |
|
|
59,000--62,999 |
22,500 |
25,300 |
28,100 |
29,500 |
32,300 |
33,700 |
|
|
55,000--58,999 |
21,500 |
24,200 |
26,900 |
28,200 |
30,900 |
32,300 |
|
|
51,000--54,999 |
20,600 |
23,100 |
25,700 |
27,000 |
29,600 |
30,800 |
|
|
48,000--50,999 |
19,700 |
22,100 |
24,600 |
25,800 |
28,300 |
29,500 |
|
|
45,000--47,999 |
19,000 |
21,300 |
23,700 |
24,900 |
27,300 |
28,400 |
|
|
42,000--44,999 |
18,200 |
20,400 |
22,700 |
23,800 |
26,100 |
27,200 |
|
|
39,000--41,999 |
17,400 |
19,500 |
21,700 |
22,800 |
25,000 |
26,000 |
|
|
36,000--38,999 |
16,500 |
18,500 |
20,600 |
21,600 |
23,700 |
24,700 |
|
|
33,000--35,999 |
15,600 |
17,600 |
19,500 |
20,500 |
22,400 |
23,400 |
|
|
30,000--32,999 |
14,700 |
16,600 |
18,400 |
19,300 |
21,200 |
22,100 |
|
|
28,000--29,999 |
13,900 |
15,700 |
17,400 |
18,300 |
20,000 |
20,900 |
|
|
26,000--27,999 |
13,400 |
15,000 |
16,700 |
17,500 |
19,200 |
20,000 |
|
|
24,000--25,999 |
12,700 |
14,300 |
15,900 |
16,700 |
18,300 |
19,100 |
|
|
22,000--23,999 |
12,100 |
13,600 |
15,100 |
15,900 |
17,400 |
18,100 |
|
|
20,000--21,999 |
11,400 |
12,800 |
14,200 |
14,900 |
16,300 |
17,000 |
|
|
18,000--19,999 |
10,700 |
12,100 |
13,400 |
14,100 |
15,400 |
16,100 |
|
|
16,000--17,999 |
10,100 |
11,300 |
12,600 |
13,200 |
14,500 |
15,100 |
|
|
14,000--15,999 |
9,400 |
10,500 |
11,700 |
12,300 |
13,500 |
14,000 |
|
|
Under 14,000 |
8,600 |
9,700 |
10,800 |
11,300 |
12,400 |
13,000 |
|
[End of Document]