The amount of rental subsidy that a staff member is entitled to depends on five factors:
- Monthly net salary
- Post Adjustment
- Individual threshold percentage
- Monthly rent paid
- Reasonable maximum rent level at duty station (only applicable for Duty Stations in Western Europe and North America)
Additionally, for Western Europe and North America the reimbursement percentage is dependant on the number of years completed at the Duty Station:
- Completed 0-3 years: 80%
- Completed 4 years: 60%
- Completed 5 years: 40%
- Completed 6 years: 20%
- Completed 7 years: 0%
Please note that time served at the duty station prior to effective date of eligibility may count against number of completed years at the duty station (e.g. ALD appointment).
As a basic rule, the rental subsidy equals (monthly rent - individual threshold) x 80%, where the individual threshold is calculated as (monthly net salary + post adjustment) x individual threshold percentage. However, the rental subsidy can never exceed 40% of monthly rent, and the rent will only be subsidized up to the maximum reasonable rent level in a given duty station.
If electricity is included in the rent, a deduction will be made.
The reasonable maximum rent level is determined at the duty station: In field duty stations the country office certifies that the rent paid is reasonable. In Headquarters duty stations, the reasonable maximum is also settled locally. 10% is added for levels D1 and D2, and 20% for ASG and USG levels.
In field duty stations where housing is provided by the government or others for free or at a very low price, the staff member may be subject to rental deductions. The reason for this is that housing expenses are included in the post adjustment, which all staff members receive.
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