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CHAPTER 200 COST-OF-LIVING ALLOWANCES 210 GENERAL 211 Definition The term "cost of living allowance" means an allowance granted under the authority of title 5 U.S.C. 5924. Cost of living allowances include the post allowance (Section 220), the foreign transfer allowance (Section 240), the home service transfer allowance (Section 250), the separate maintenance allowance (Section 260), the education allowance (Section 270) and educational travel (Section 280). 212 Scope Cost-of-living allowances are intended to reimburse an employee for certain excess costs, exclusive of any quarters costs, which result from being officially stationed in a foreign area. 220 POST ALLOWANCE 221 Definition "Post allowance" means a cost-of-living allowance granted to an employee officially stationed at a post in a foreign area where the cost of living, exclusive of quarters costs, is substantially higher than in Washington, D.C. 222 Scope The post allowance is a balancing factor designed to permit employees to spend the same portion of their basic compensation for current living as they would in Washington, D.C., without incurring a reduction in their standard of living because of higher costs of goods and services at the post. The post allowance payment tables (Section 229) represent a percentage increase over Washington cost-of-living, applied to "spendable income", i.e., that portion of basic compensation available for disbursement after deduction for taxes, gifts and contributions, savings (including insurance and retirement) and U.S. shelter and household utility expenses. In addition to local prices, the comparative cost of living considers the normal expenses of the average Government employee at the post (including imports and commissary purchases paid for in United States dollars) and additional costs resulting from local climatic and health conditions and customs, as related to costs for the same or similar items and conditions affecting Government employees in the Washington, D.C. area. Education and other costs peculiar to one segment of personnel at a post are not considered. The amount paid is a flat rate varying only by basic salary, size of family, and post, regardless of individual expenses. 223 Commencement 223.1 Newly Appointed or Transferred Employee The post allowance grant to a newly appointed or transferred employee shall commence as of the following applicable date: a. the date the employee arrives at a new post (also see Section 053), except that no post allowance authorized under this section shall be paid during any period when an employee or family member is receiving payment of a temporary quarters subsistence allowance authorized under Section 120 of these regulations; b. the date the family arrives at the new post when the employee's arrival is delayed because of his/her being ordered to report at another place for consultation or detail and the family arrives at the new post before employee; c. the date of the employee's entrance on duty, if the employee is recruited at the post; d. the effective date of transfer when the employee is already at the post to which transferred (the effective date of transfer being considered the date of first arrival at the new post). 223.2 Upon Return to Post The post allowance grant to an employee whose allowance was discontinued during a period of absence shall begin as of the date of return to the post, or as of the date of return of the family if they precede him/her to the post after such period of absence. 224 Termination 224.1 Transfer The post allowance grant to an employee who is transferred shall terminate as of: a. the date the employee or family member occupies temporary quarters prior to departure and for which the temporary quarters subsistence allowance under Section 120 of these regulations is payable; b. the date the employee commences official travel under transfer, or combined leave and transfer order; c. the effective date of transfer when no travel by the employee under the transfer order is involved. 224.2 Leave Orders The post allowance grant to an employee who has been issued official travel orders for leave, unrelated to transfer, shall terminate as of: a. the date he/she commences travel under such orders which authorize payment of travel per diem allowance, including home leave travel with return to post authorized; As an exception, the post allowance grant shall be revised to the appropriate lower family size rate while an employee with family is absent from the post under official orders for leave unrelated to transfer, in instances where the head of agency determines that the employee is required to continue the usual expenses of his/her residence at the post to maintain one or more members of family who remain at the post. b. the 31st calendar day of absence from the post under travel orders which do not authorize payment of travel per diem allowance. 224.3 Separation The post allowance grant to an employee who is separated (Section 040r) shall terminate as of the date of his/her departure from the post or the last day of employment, whichever is earlier. 225 Continuance During Absence from Post 225.1 Employee Without Family The post allowance grant to an employee without family continues: a. while he/she remains in the country of assignment (Section 040g); and b. while he/she is outside the country of assignment for short periods of absences (up to 30 consecutive calendar days) unless the officer designated to authorize allowances determines that the grant should not continue. On the 31st day of absence, the grant is to be terminated. (For travel under leave orders, see also Section 224.2.) 225.2 Employee With Family The post allowance grant to an employee with family continues at the appropriate family size rate: a. while the employee and all members of the family are outside the country of assignment for short periods of absences (up to 30 consecutive calendar days) unless the officer designated to authorize allowances determines that the grant should not continue. On the 31st day of absence the grant is to be terminated. (For travel under leave orders see Section 224.2.); b. while the employee is temporarily absent from the country of assignment under official duty orders and the family remains in the country of assignment; and c. for a period not in excess of 30 days while any or all members of the family are temporarily absent from the post and the employee remains in the country, except as otherwise provided in Sections 227.1 and 227.2. On the 31st day any grant shall be reduced appropriately. 226 Determination of Rate Except as otherwise prescribed in Sections 223.1, 224.1 and 226.1, a post allowance shall be granted to an employee at a rate to be determined by the classification (Section 061 and Section 920) of his/her post (Section 040h), as prescribed in column 3, Section 920; his/her salary (Section 040l); family size (Section 040m); and the applicable annual rate prescribed in Section 229. 226.1 Special Rule - Married Couple Employees at the Same Post When married couple employees without family members are both eligible for the post allowance, each may be granted the post allowance in Section 229.1 for one person. When married couple employees with family members are both eligible for the post allowance, one employee spouse, at his/her option, may receive the post allowance for family members (Section 040m). The other employee may be granted the post allowance for one person only. 227 Revision of Grant 227.1 Change in Applicable Rate The post allowance grant shall be appropriately revised effective the date of change in any of the following: a. classification of the post (column 3, Section 920); b. payment tables (Section 229); c. employee's salary; or d. employee's family size. 227.2 Change Pursuant to an Away from Post Education Allowance and Educational Travel When a child on whose behalf an employee is currently receiving either an away from post education allowance or educational travel leaves the post for a period in excess of 30 days, the employee's post allowance shall be revised to the next lower family size rate. When the child returns to the post for a period in excess of 14 days, the allowance may again be revised to restore the reduced amount. Revisions shall be made effective as of the date of departure or arrival of the child if such date falls on the first day of a pay period. Otherwise, the revision shall be made effective as of the first day of the pay period next following the applicable date. 228 Post Allowance Levels 228.1 The post allowance level is based on the foreign cost of living as compared with that of the Washington, D.C. area. The post allowance levels for all locations are listed in column 3 of Section 920. The six tables in Section 229 list annual amounts of post allowance payments for employees with different base salaries and the number of persons eligible for the post allowance. The word person means the employee or family members eligible for post allowance payments under these regulations. 228.2 The post allowance level is based on a cost of living index number which shows living costs in the foreign location relative to living costs in Washington, D.C. as 100. This living cost comparison is developed from the Retail Price Schedule report required by Section 070 and completed in accordance with Section 950 of these regulations. Post allowance payments are based on the cost of living index as applied to the employee's spendable income. Spendable income is defined as that portion of base salary available to the employee after typical deductions for Federal, State and local income taxes; U.S. shelter and household utility expenses; retirement funds; contributions and gifts to persons and organizations outside the family; life insurance programs and personal savings. The post allowance payment tables (Section 229) are based on national Consumer Expenditure Surveys as conducted periodically by the Bureau of Labor Statistics of the U.S. Department of Labor. The following table shows how the cost of living index number is used to derive specific post allowance levels. Cost of Living Index Post Allowance Class for Foreign Location (percent applied to (Washington = 100) spendable income to determine allowance) 103 - 107      5% 108 - 112     10 113 - 117     15 118 - 122     20 123 - 127     25 128 - 132     30 133 - 137     35 138 - 145     42 146 - 155     50 156 - 165     60 166 - 175     70 176 - 185     80 186 - 195     90 196 - 205     100 206 - 215     110 216 - 225     120 226 - 235     130 236 - 245     140 246 - 255     150 256 - 265     160 The above post allowance classes represent the mid-points of the cost of living index ranges. The index ranges were selected so as to provide increases of approximately five percent from the mid-point of one index range to the next. (e.g. an increase from 105 to 110 and from 210 to 220 are 5 and 10 index points, respectively, but both are approximately 5% increases.) The post allowance classes are in Section 920 and the payment tables are in Section 229 of these regulations. Although the present tables are designed to show allowance levels up to 100% above those of Washington, D.C. the tables may be revised as necessary to reflect any current post allowance level indicated by new cost of living survey indexes. 229 Payment Post allowances shall be computed and paid at annual rates, divided by the number of days in the calendar year to obtain a daily rate (counting 1/2 cent and over as a whole cent); multiplying the daily rate by 14 to obtain a biweekly rate; and multiplying the daily rate by the number of days involved to obtain the rate for any other period. The rate for any split pay period at the end of a calendar year shall be computed at the daily rate applicable on the first day of that pay period. (Post allowance payment tables for six family sizes are included in Section 229.1.) 240 FOREIGN TRANSFER ALLOWANCE 241 Description 241.1 Definitions a. "Foreign transfer allowance" means an allowance under 5 U.S.C. 5924(2)(A) for extraordinary, necessary and reasonable expenses, not otherwise compensated for, incurred by an employee incident to establishing him or herself at any post of assignment in a foreign area, including costs incurred in the United States, its territories, possessions, the Commonwealth of Puerto Rico and the Commonwealth of the Northern Mariana Islands prior to departure for such post. b. "Transfer" in Section 240 means an appointment, assignment, reassignment, or transfer that involves travel on the part of an employee from one foreign post to another or from a place listed in Section 242.2b, to a post listed in Section 920. (See Section. 242.6) c. "United States", for the purposes of this section, means the several States of the United States of America, including Alaska and Hawaii, the District of Columbia, its territories or possessions, the Commonwealth of Puerto Rico and the Commonwealth of the Northern Mariana Islands. 241.2 Scope The foreign transfer allowance is composed of four elements: *a. a lump sum miscellaneous expense portion to assist with certain extraordinary costs. The following and similar types of extraordinary costs are intended to be reimbursed with this allowance provided they are deemed to be reasonable and necessary in the individual case: (1) disconnecting and connecting appliances, equipment and utilities; (2) converting household equipment and appliances for operation on available utilities (including necessary power transformers); (3) cutting and fitting rugs, draperies and curtains moved from one residence to another--not cost of new rugs, etc.; (4) utility fees or contract deposits that are not offset by eventual refunds; (5) automobile registration, driver's license and similar fees; (6) personal cable and telephone costs attributable to the relocation of the employee and his/her family exclusive of such costs relating to travel and hotel arrangements intended to be reimbursed by per diem to which the employee is entitled. *(7) required quarantine of pet(s); *(8) removal or re-installation of catalytic converter; *(9) required removal or installation by host country law of automobile parts (such as tinted windows or special lights); (10) Agent fees incurred for living quarters in a foreign area that are not offset by an eventual refund. Types of costs not covered include the following: (1) losses in selling or buying real and personal property and costs of items related to such transactions; (2) costs which are reimbursed under other provisions of these regulations or under any other regulations or under provisions of any statute; (3) additional costs of moving household goods caused by exceeding the maximum weight limitation for which the employee has eligibility as provided by law or in regulations; (4) costs of newly acquired items such as the purchase or installation costs of new rugs or draperies; (5) higher income, real estate, sales, or other taxes as the result of establishing residence in the new post; (6) fines imposed for traffic infractions while enroute to the new post; (7) accident insurance premiums or liability costs incurred in connection with travel to the new post, or any other liability imposed upon the employee for uninsured damages caused by accidents for which the employee or an immediate family member is held responsible; (8) losses as the result of the sales or disposal of items or personal property not considered convenient or practicable to move; (9) damage or loss of clothing, luggage or other personal effects while traveling to the new post; (10) subsistence, transportation or mileage expenses in excess of the amounts reimbursed as per diem or other allowances under pertinent regulations; (11) medical expenses due to illness or injury of the employee or a member of family while en route to the new post; (12) costs incurred in connection with structural alterations; remodeling or modernizing of living quarters, garages or other buildings, to accommodate privately owned automobiles, appliances or equipment or the cost of replacing or repairing worn-out or defective appliances or equipment shipped to the new post; (13) additional insurance on household goods while in transit to the new post. b. a lump sum wardrobe expense portion. For this portion, posts are grouped into three zones according to climate, and employees into three family sizes. The flat rates provided for in this portion are intended to offset a part of the wardrobe cost of two zone transfers only, from zones 1 to 3 or 3 to 1. c. a predeparture subsistence expense portion applicable to lodging, meals (including tips), laundry, cleaning and pressing expenses in temporary quarters for employee and each member of family for up to 10 days before final departure from a post in the United States to a post in a foreign area, beginning not more than 30 days after they have vacated residence quarters. Expense of local transportation is not allowable. d. a lease penalty expense portion to assist employees receiving the living quarters allowance to help offset the expense of unavoidable lease penalties in a foreign area for the early termination of a lease due to transfer required by a Federal agency. 242 Amounts 242.1 Miscellaneous Expense Portion a. The following amounts may be granted without receipts or itemizing required: (1) for an employee without family - $350 or the equivalent of one week's pay, whichever is the lesser amount; (2) for an employee with family - $700 or the equivalent of two weeks' pay, whichever is the lesser amount. b. The following amounts, based on the employee's salary at the time of entrance on duty at the new post, may be granted in lieu of the amounts provided in Section 242.1a, if supported by either paid bills or other acceptable evidence justifying the amounts claimed: (1) for an employee without family - an amount based on actual allowable itemized expenditures not to exceed one week's salary for the employee or one week's salary for an employee at GS-13, step 10, whichever is the lesser amount; (2) for an employee with family - an amount based on actual allowable itemized expenditures not to exceed two week's salary for the employee or two weeks' salary for an employee at GS-13, step 10, whichever is the lesser amount. 242.2 Wardrobe Portion a. Transfer Between Foreign Posts The amount of the wardrobe portion of the foreign transfer allowance granted to an employee shall be determined by the zone classification of the respective posts to which and from which the employee is transferred that are in effect on the date of arrival at the new post and by family size. Receipts for wardrobe expenses are not required and such receipts may not be submitted to support any claim for miscellaneous expenses. b. Transfer Between the United States or Other Specified Places and Foreign Areas Places listed below shall be considered to be classified as indicated for the purpose of determining the amount of the wardrobe portion of the transfer allowance payable to an employee who is transferred from one of these places to a post listed in Section 920.

ALASKA COMMONWEALTH OF PUERTO RICO COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS CONTERMINOUS UNITED STATES HAWAII PACIFIC ISLAND POSSESSIONS OF THE UNITED STATES VIRGIN ISLANDS OF THE UNITED STATES

ZONE 1 ZONE 3 ZONE 3 ZONE 2 ZONE 2 ZONE 3 ZONE 3

*242.3 Predeparture Subsistence Expense Portion *The amount of predeparture subsistence expense granted to an employee for expenses in departing a post in the United States for a post in a foreign area shall be determined according to the maximum per diem rate for the U.S. locality from which transferred and according to family status, except that lodging tax incurred as predeparture lodging expense shall not be included in the amount of lodging expense subject to the maximum per diem rate cap but may be reimbursed separately. Agencies may choose either the Partial Flat Rate Method described at "a." or the Total Actual Subsistence Method of reimbursement to employees at "b.". Agencies may offer either method under "a." or "b." follow: *a. Partial Flat Rate Method. Agencies may allow employees to be reimbursed an actual lodging amount (excluding lodging tax) up to the lodging portion of the per diem of the locality from which transferred and a flat amount equal to the meal and incidental expense (M&;IE) portion of the per diem according to the formula below. In addition to this amount, agencies may allow for employees to be reimbursed separately for taxes imposed on actual lodging expenses. Receipts are required for only lodging if this method is followed. For the initial occupant, whether employee or family member age 12 or over, a daily lodging amount not in excess of the published lodging portion of the per diem rate for the locality from which transferred and a flat amount equal to the meal and incidental expense portion of the referenced per diem rate to defray costs for meals, laundry and dry cleaning. For each additional occupant, whether employee or family member age 12 or over, a daily lodging amount not in excess of 75% of the published lodging portion of the per diem rate for the locality from which transferred and a flat amount equal to 75% of the meal and incidental expense portion of the referenced per diem rate to defray costs for meals, laundry and dry cleaning. For each family member occupant under age 12, a daily lodging amount not in excess of 50% of the published lodging portion of the per diem rate for the locality from which transferred and a flat amount equal to 50% of the meal and incidental expense portion of the referenced per diem rate to defray costs for meals, laundry and dry cleaning. Example of the Partial Flat Rate Method: If the per diem for the U.S. post of assignment is $164 (Lodging portion $118; M&IE portion $46), allowable amounts for each employee and each family member are as follow:

Lodging Flat Rate Maximum Portion
Initial Occupant (Empl. or Fam. member 12 & over) (100% of each portion)	$118.00    $ 46.00
Each Additional Occupant (12 & over) (75% of each portion)	$ 88.50    $ 34.50
Each Additional Occupant (under 12) (50% of each portion)	$ 59.00    $ 23.00

If family consists of employee, spouse, one child 15 and one child 10, maximum up to lodging limit would be $354 per day.  Flat rate for family per day would be $138. Tax on lodging is reimbursed separately. *b. Total Actual Subsistence Method. Agencies may also allow only reimbursement for documented costs based on the maximum per diem (no breakdown between lodging and meal and incidental expense portions for this type of calculation) according to the formula below. Receipts would be required for lodging and commercial laundry and dry cleaning; and a certified per day statement of meal costs (may include coin-operated laundry expenses). Agencies shall determine how detailed they want this statement: either a per day meal statement or a per meal/per day statement. Lodging tax may be reimbursed separately. For the initial occupant, whether employee or family member age 12 or over, a daily amount not in excess of the published maximum per diem rate for the locality from which transferred. For each additional occupant, whether employee or family member age 12 or over, a daily amount not in excess of 75% of the published per diem rate for the locality from which transferred. For each family member occupant under age 12, a daily amount not in excess of 50% of the published per diem rate for the locality from which transferred. Example of the Total Actual Subsistence Method: If the per diem for the U.S. post of assignment is $164 (no breakdown between lodging and M&IE for this calculation), maximum allowances for each employee and each family member are as follows:

Maximum based on U.S. post of assignment per diem
Initial Occupant (Empl. or Fam. member 12 & over) (100% of per diem)	$164.00
Each Additional Occupant (12 & over) (75% of per diem)	$123.00
Each Additional Occupant (under 12) (50% of per diem)	$ 82.00

If family consists of employee, spouse, one child 15 and one child 10, reimbursement will be based totally on actual documented expenses up to a maximum of $504 per day. Tax on lodging is reimbursed separately. c. The ten days may be anywhere in the U.S. as long as employee or family members have not begun travel on orders and final departure is from the U.S. post of assignment. If in an agency's judgment unusual circumstances cause an employee or family member to be unable to travel to the foreign post of assignment within the ten day limit, the agency may permit additional days beyond the ten allowed. (One example of a reason to approve beyond the ten days may be if the employee submitted application for passport/visa in a timely manner and still did not receive documents in time to proceed to the foreign area.) Rates of per diem are published in the following regulations: *1. Conterminous/Continental United States (CONUS) (48 contiguous states and the District of Columbia): Appendix A to Chapter 301 of the Federal Travel Regulation. Internet site: http://policyworks.gov/org/main/mt/homepage/mtt/perdiem/per99d.html *2. Non-foreign areas (Alaska, Hawaii, Commonwealth of Puerto Rico, Commonwealth of the Northern Mariana Islands and territories and possessions of the United States): Department of Defense Joint Travel Regulations, Volume II, Appendix A. These rates are also included in Civilian Personnel Per Diem Bulletins issued by the Department of Defense and published in Section 925 of these regulations. Internet site: http://www.dtic.mil/perdiem/pdrates.html Next section of the DSSR: 242.4