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Post allowance is a non-taxable cost of living allowance granted to employees stationed at a post or foreign area where the cost of living, exclusive of quarters costs, is substantially higher than in Washington, DC.

It is paid as a percentage of basic compensation in 5, 10, 15, 20, 25, 30 and 35% increments. In addition to being paid to permanently-assigned personnel, post differential may also be paid to employees on extended detail either from the U.S. or from foreign posts. See DSSR 500 for further information.

Home Service Transfer Allowance (HSTA): The purpose of the HSTA is to help defray an employee's extraordinary but necessary and reasonable costs when s/he transfers from a foreign post to a post in the United States.

Payments received by U.S. Government civilian employees for working abroad, including pay differentials, are taxable. However, certain foreign areas allowances, cost of living allowances, and travel allowances are tax free.

Post Allowance (DSSR 220 and DSSR 960 Omnibus Exhibit): Commonly referred to as the "cost-of-living" allowance (COLA), this is an allowance based on a percentage of "spendable income," i.e. money you can really put your hands on to spend on goods and services.

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.

Definition of Post Differential or Danger Pay Post differential/danger pay are two separate entitlements (taxable compensation) provided in addition to regular salary for employees permanently and temporarily assigned to certain overseas areas, which have been declared a "hostile area" by the Department of State.

The flat amount for an employee without family is the lesser of either one-week's salary or $750. For an employee with family it is the lesser of two weeks' salary or $1,500. A higher rate is available if the employee provides itemized receipts for all expenses claimed (see DSSR 242.1b).