Allowances and Differentials Policy for OCONUS-Based Expat Employees
The Allowances and Differentials Policy has been drafted for companies doing business with the US Government and who require staff to relocate overseas on OCONUS assignments. The allowances and differentials provided for in this policy are modeled after the best practices identified in the Department of State's Standardized Regulations, Foreign Affairs Manual, and Foreign Affairs Handbook. They include:
- Post Differential
- Living Quarters Allowance (LQA)
- Temporary Quarters Subsistence Allowances (TQSA)
- Post Allowance (COLA)
- Education Allowance
- Educational Travel
- Separate Maintenance Allowance
- Danger Pay
- Rest and Recuperation (R&R)
- Home Leave
The policy has been drafted to ensure compliance by federal awardees with the regulations pertaining to allowability of fringe benefits packages, specifically:
- FAR 31.205-6(m) "Compensation for personal services - fringe benefits" for contracts; and
- 2 CFR 200.431 "Compensation - fringe benefits" for grants and cooperative agreements.
These regulations require that companies doing business with the government have written policies in place in order for their fringe benefits packages to be deemed allowable. This document is intended to serve as such written policy.
This policy is compliant for both indirect travel and direct travel funded by the US government; however, it has not been modeled after USG agency supplemental FARs. Thus, purchasers are advised to review the terms of individual contracts, grants, and cooperative agreements for any additional restrictions that may apply to a particular award, and revise their award-specific policies accordingly.
This policy may also be used by companies operating outside the US government award space, as well, though the purchaser is advised to review other funders' rules, regulations, policies and agreements for any additional restrictions or contradictory requirements that may apply.
The document is in Word format, giving you the opportunity to tweak and customize where needed. Further, if you need additional expert guidance, purchase of this document includes one hour of service to address purchaser questions and/or requests for customization. Additional customization may be purchased for an additional fee.
Please contact us for any questions.
Microsoft Word Document

