PA is 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. Allowance payments are based on family size and salary levels.
People also ask, what is post differential pay?
POST DIFFERENTIAL/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.
Is post differential taxable income?
Cost-of-living allowances are not considered a part of taxable income. Post Hardship Differential, Danger Pay, and Difficult-to-Staff Incentive Differential (also known as Service-Needs Differential) are all considered recruitment and retention allowances. They are included in taxable income.
What is a hardship post?
A hardship post is a term used in the United States Diplomatic Service to describe a diplomatic post where living conditions are difficult due to climate, crime, health care, pollution or other factors. Employees assigned to such posts receive a hardship differential of between 10 and 35 percent of their salary.