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what is overseas comparability pay

by Prof. Adan Ferry Jr. Published 2 years ago Updated 2 years ago
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OCP is designed to correct an anomaly in the existing law and place all federal employees posted abroad on an equal footing in terms of salary with those serving in Washington, D.C.

Full Answer

What benefits do GS employees get overseas?

This group includes the post allowance (more commonly referred to as the COLA), foreign transfer allowance, home service transfer allowance, separate maintenance allowance, education allowance, and educational travel. Cost of living allowances are not considered a part of taxable income.

What is pay Comparability adjustment?

Tag: Comparability adjustments Adjustments made to improve the accuracy and reliability of the comparables to ensure that the financial results of the comparables are stated on the same basis as those of the tested party. Post Tag.

Do you get locality pay overseas?

Cost of Living Allowances: Employees stationed overseas are not paid locality pay, since this is limited to employees within the continental United States, as well as to non-foreign areas, such as Alaska and Hawaii.

What is locality comparability payment?

A locality-based comparability rate is basic pay for purposes of retirement, life insurance, FICA, and thrift savings deductions; also premium pay and the biweekly premium pay limitation, severance pay, advances in pay, worker's compensation payments, and lump sum leave entitlements.

Who has the highest locality pay?

Washington, DC has the highest overall average general schedule grade level in government. As of September 2021, the average federal GS grade in the Washington, DC core based statistical area was 12.67....Seattle Comes Out on Top in Locality Pay.SAN JOSE-SAN FRANCISCO-OAKLAND, CA3.14%SAN DIEGO-CARLSBAD, CA3.07%1 more row•Dec 27, 2021

How does locality adjustment work?

For all of these pay schedules, the locality adjustment is based on place of employment, not place of residence. This allows employees to choose to commute from a more affordable area into an area with a higher cost of living in order to receive higher pay relative to where they live.

What is overseas allowance?

LQA is a tax-free allowance to pay for living quarters and utilities while overseas. Eligibility for LQA is based on the employee's status when applying for an overseas position.

How long can federal employees work overseas?

Most Federal jobs that are abroad are only for a specific amount of time, which is called a “tour.” A typical tour will be anywhere from 12 months to 36 months depending on the job you end up getting. Once your tour is up you will want to be sure you will have the resources you need to come back stateside.

How is overseas post allowance calculated?

The amount varies depending on salary level and family size. The post allowance is calculated by comparing costs for goods and services at the foreign post with the costs for the same items in the Washington, D.C. area.

How is locality pay calculated?

Determining a Locality Rate To determine an employee's locality rate, increase the employee's "scheduled annual rate of pay" by the locality pay percentage authorized by the President for the locality pay area in which the employee's official worksite is located. Locality pay areas are defined in 5 CFR 531.603.

How do you calculate cost of living adjustment?

The formula used to calculate COLA utilizes an average of the CPI-W from the third quarter of the current year (A) and the third quarter of the previous year (B). The formula is (A-B) / B * 100 = I. Usually calculated in December, the adjustment begins in January of the following year.

How is VA locality pay determined?

Determining a Locality Rate To determine an employee's locality rate, increase the employee's "scheduled annual rate of pay" by the locality pay percentage authorized by the President for the locality pay area in which the employee's official worksite is located. Locality pay areas are defined in 5 CFR 531.603.

How is differential pay calculated?

In most cases, differential rates of pay are calculated by taking a worker's regular hourly wage and then adding an additional percentage of that wage. That's the 'shift differential', the extra percentage added to the normal rate.

What is cost of labor vs cost of living?

Costs of living and labor are 2 disparate measures of calculated values. Cost of living: a government-based metric using economic factors that look at how people spend money to live their day-to-day lives. Cost of labor: a metric based on how much employers must pay to hire for specific roles.

How does GS pay work overseas?

Overseas employees in foreign areas receive the base pay on the GS pay charts with annual cost-of-living adjustments. Additional allowances such as a post differential are provided where conditions warrant.

What is locality comparability payment?

Locality-based comparability pay is designed to reduce the disparity between Federal and private sector pay to five percent in nine years. ... Locality pay adjustments must be made when non-Federal pay exceeds Federal pay by more than 5 percent. Locality pay does not apply outside the continental United States.

What is the difference between GS and FP?

Peace Corps positions are classified to the Foreign Personnel (FP) pay plan (grade level system). As FP grades go higher, the corresponding numbers go lower. For example, the highest grade level is FP-1 (equivalent to GS-15) and the lowest grade level is FP-9 (equivalent to GS- 5).

What is locality pay?from afsa.org

Locality Pay is a pay adjustment intended to raise base salaries of federal employees nearer to the level of salaries paid in the private sector for comparable work in specific labor markets. It is not a cost-of-living adjustment or incentive pay .

How often does the government publish pay tables?from usa.gov

The government publishes new pay tables for federal employees every year.

What is educational allowance?from commerce.gov

Educational Allowance: This allowance is used to help defray the cost of an employee sending his or her child to an elementary or secondary school at the new foreign post. See DSSR 270 and 5 U.S.C. § 5924 (4) (A).

What is separate maintenance allowance?from commerce.gov

Separate Maintenance Allowance: This allowance is paid when an employee’s family is either prohibited from accompanying the employee to the new foreign duty station (“involuntary SMA”), chooses not to for personal reasons (“voluntary SMA”), or has to establish a new household temporarily due to evacuation (“transitional SMA”). This allowance helps to defray the cost of maintaining two separate households. See DSSR 260 and 5 U.S.C. § 5924 (3).

What is home service transfer allowance?from commerce.gov

Home Service Transfer Allowance: This allowance is paid to help cover necessary and reasonable expenses typically found when an employee transfers from a foreign post back to the United States. Examples include meals, lodging, dry cleaning, and vehicle registration. See DSSR 250 and 5 U.S.C. § 5924 (2) (B).

What is extraordinary quarter allowance?from commerce.gov

Extraordinary Quarters Allowance: This allowance, not to exceed 90 days, is meant to cover temporary living expenses that are incurred when a privately leased residence at the foreign post must be renovated before the employee (and his or her dependents) can move in. See DSSR 140 and 5 U.S.C. § 5923 (a) (3).

What is danger pay?from commerce.gov

Danger Pay Allowance: An allowance not to exceed 35 percent of basic pay, when service is performed in a country experiencing civil insurrection, civil war, terrorism, or wartime conditions that threaten physical harm or imminent danger to the employee’s health and well-being.

What is extraordinary quarter allowance?

Extraordinary Quarters Allowance: This allowance, not to exceed 90 days, is meant to cover temporary living expenses that are incurred when a privately leased residence at the foreign post must be renovated before the employee (and his or her dependents) can move in. See DSSR 140 and 5 U.S.C. § 5923 (a) (3).

What is danger pay?

Danger Pay Allowance: An allowance not to exceed 35 percent of basic pay, when service is performed in a country experiencing civil insurrection, civil war, terrorism, or wartime conditions that threaten physical harm or imminent danger to the employee’s health and well-being.

What is educational allowance?

Educational Allowance: This allowance is used to help defray the cost of an employee sending his or her child to an elementary or secondary school at the new foreign post. See DSSR 270 and 5 U.S.C. § 5924 (4) (A).

What is separate maintenance allowance?

Separate Maintenance Allowance: This allowance is paid when an employee’s family is either prohibited from accompanying the employee to the new foreign duty station (“involuntary SMA”), chooses not to for personal reasons (“voluntary SMA”), or has to establish a new household temporarily due to evacuation (“transitional SMA”). This allowance helps to defray the cost of maintaining two separate households. See DSSR 260 and 5 U.S.C. § 5924 (3).

What is home service transfer allowance?

Home Service Transfer Allowance: This allowance is paid to help cover necessary and reasonable expenses typically found when an employee transfers from a foreign post back to the United States. Examples include meals, lodging, dry cleaning, and vehicle registration. See DSSR 250 and 5 U.S.C. § 5924 (2) (B).

How many pay periods can an employee advance?

Moving Overseas or Medical Emergency: An employee’s pay may be advanced up to six pay periods (three months). Such advancements are found when an employee first moves overseas or when an employee or family member experiences a sudden medical emergency. See DSSR 850 and 5 U.S.C. § 5927.

What is a hardship to staff incentive?

Difficult-to-Staff Incentive: An additional recruitment or retention incentive, valued at up to 15 percent of basic pay, provided to certain employees already receiving postal hardship differential, when a post has experienced particularly adverse conditions. See DSSR 1000 and 5 U.S.C. § 5925 (b).

What was the Federal Pay Comparability Act of 1990?from afsa.org

The Federal Pay Comparability Act of 1990 in advertently excluded some federal employees posted outside the continental United States from receiving locality pay adjustments. As a result, the majority of Foreign Service personnel, who spend about 60 percent of their careers posted abroad, receive less salary during that time and less of a career total than their Civil Service department or agency colleagues who perform the same or similar functions exclusively within the United States.

What is locality pay?from afsa.org

Locality Pay is a pay adjustment intended to raise base salaries of federal employees nearer to the level of salaries paid in the private sector for comparable work in specific labor markets. It is not a cost-of-living adjustment or incentive pay .

Do civil service employees on TDY overseas get locality pay?from afsa.org

Civil Service Employees on Temporary Duty (TDY) overseas do retain the locality pay designated for their place of domestic assignment. Locality pay in such cases is not permanent, even though TDY assignments can run as long as a year or longer, with waivers. Federal employees in that status can also receive differential and cost of living adjustments for the post of assignment and in some cases per diem, as well. Civil Service employees on long-term or permanent assignment overseas, however, do not receive locality pay.

When will the Foreign Service Officer salary change?from pathtoforeignservice.com

January 22, 2020. The Foreign Service Officer salary is dynamic and ever-changing. Along with your promotion, each assignment can bring with it different danger pay, hardship pay, and cost-of-living adjustments that affect what you take home. Depending on international geopolitics, the strength of domestic and national currencies, ...

What is danger pay allowance?from pathtoforeignservice.com

Danger pay allowance is a taxable supplement that is designated at 15%, 25%, or 35% and is based on overseas comparability pay.

How is annual spendable income determined?from pathtoforeignservice.com

Annual spendable income is determined by your base pay and family size.

Is a cost of living allowance taxable?from pathtoforeignservice.com

A cost-of-living allowance (COLA) differs from the previous two allowances by not being a percentage of your overseas comparability pay, and it is also not taxable.

Is hardship pay life threatening?from pathtoforeignservice.com

Posts that are designated with hardship allowance, are much more common. However, unlike danger pay, hardship doesn’t mean life-threatening.

Can your salary rise or fall between posts?from pathtoforeignservice.com

Depending on international geopolitics, the strength of domestic and national currencies, and the size of your family, to name a few, your salary can rise or decline between posts.

Is there a lot of information in salary comparisons?from pathtoforeignservice.com

There is a lot of information found in salary comparisons. For complete review, I urge you to look at this spreadsheet I have made available for you:

Where are expat prices collected?

A: Prices are collected from locations where the executive expats shop and are within the area where they live for that city.

What is the foreign CPI?

A: The foreign CPI is based on the local consumer living pattern and would not represent the spending patterns and products chosen by an American employee assigned to the foreign post. CPI changes tend to reflect a number of expenditure categories such as housing & utilities and children�s education that are not included in the post allowance because they are covered by other allowances. Thus, employees would not be appropriately compensated, especially in the under-developed countries of the world.

Where to find annual post allowance?

A: The annual post allowance amounts are found in the six payment tables in DSSR 229.1. To assist employees in calculating the amount they might receive on a biweekly basis, the Office of Allowances has created a 'COLA Calculator' which is available on our website on the Post Allowance (COLA) page. The base salary does include the Overseas Comparability Pay.

Does the Department of State offer accommodation exchange?

For many locations where the Department of State does not offer official accommodation exchange, our diplomatic posts transmit information on a biweekly basis reporting exchange rates from the local banks most used by USG personnel.

Is post allowance taxable?

A: No. Per D SSR 054.1 the post allowance is not taxable.

Is organic food cheaper than non organic?

A: Prices are based on the medium prices in the foreign area as well as in the Washington, D.C. suburbs � not the most expensive nor the lowest. While organic could cost you much more than non-organic this is a personal choice.

Is post allowance a percentage of salary?

A: The post allowance is not a percentage of base salary. DSSR 228.2 states �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.�

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Url:https://afsa.org/overseas-comparability-pay

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Url:https://ljks.hedbergandson.com/what-is-overseas-comparability-pay

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Url:https://www.gao.gov/products/gao-11-772r

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Url:https://hr.nih.gov/sites/default/files/public/documents/2022-01/HHS_2022%20_COMPARABILITY_PAY_TABLE.pdf

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7.U.S. Department of State | Home Page

Url:https://aoprals.state.gov/content.asp?content_id=166&menu_id=75

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Url:https://www.usaid.gov/sites/default/files/documents/1877/470mac.pdf

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