Post Allowance is paid to compensate in part for the higher price of many goods and services in overseas areas. It is based on the employee’s salary, work schedule, number of dependents, and the employee's duty station location. Changes in exchange rates also raise or lower the post allowance since exchange rates affect the cost of goods and services bought on the economy. Post allowance is not taxable. The payment of post allowance is governed by the

• Department of State Standardized Regulation (DSSR)
• Department of Defense Regulation 1400.25-M, Subchapter 1250

To be eligible for post allowance an employee must be a U.S. Citizen officially assigned at a foreign post and employed on a full time basis. Part-time, intermittent, and family member summer hire employees are not eligible.

Eligible employees must submit a Foreign Allowances Application Grant and Report, SF 1190, to claim Post Allowance. The amount to be paid will be primarily based upon the data contained on the SF 1190.

The post allowance rates are set by the Department of State and are periodically adjusted to reflect changes in the economic conditions of the foreign post. Revisions to the rates made by the Department of State are automatically processed by the DFAS. There are however, other factors which effect the total amount of post allowance entitlement and require submission of a new SF 1190 to report the change. These include:

• Change in number of family members by:

◊ marriage or divorce
◊ birth or death of a family member(s)
◊ arrival or permanent departure of family member(s)  (Note:  When the child returns to post for a period in excess of 14 days the marriage or divorce birth or death of a family member(s) allowance may again be restored)
◊ departure of employee and/or family member(s) on leave orders (i.e. Renewal Travel Orders)
◊ temporary absences of 31 days or more from post of employee and/or family member(s)
◊ family member(s) other than spouse reaching age 21 (to include full time students)
◊ family member(s) no longer residing with the sponsor

• Family member(s) started or stopped receiving post allowance or cost of living allowance (COLA) in their own right as a result of employment with the U.S. Government

• Change in post of assignment

• Receipt of Temporary Quarters Subsistence Allowance (TQSA) (post allowance requires termination in this case)

• Change in command sponsor sponsorship

• Change in employment status from part-time or intermittent to a full time employee

Back to the Housing home page