Post Differentials

The Federal Government pays post differentials to eligible civilian white collar employees in the nonforeign areas shown in the table below. The post differential is based on:

• Extraordinarily difficult living conditions;
  
  
• Excessive physical hardship; or
  
  
• Notably unhealthful conditions.

To be eligible for a differential:

• The employee must be a citizen or national of the United States.
  
  
• The employee's official duty station or detail to temporary duty must be in a post differential area.
  
  
• Immediately prior to being assigned to duty in the post differential area, the employee must have maintained his or her actual place(s) of residence outside the post differential area for an appropriate period of time (generally at least 1 year or more).
  
  
• Current residents of a post differential area must have been originally recruited from outside the differential area and have been in substantially continuous employment by the United States or by U.S. firms, interests, or organizations.

In areas where the Office of Personnel Management has authorized both a cost-of-living allowance (COLA) and a post differential, the Government pays the full COLA and a partial differential so as not to exceed 25 percent of the employee's hourly rate of basic pay. COLAs are exempt from Federal income taxes; post differentials are not.