Cost-of-living allowance to drop for civilians working in Europe
Most U.S. civilians working in Europe will receive less post allowance in their next paychecks.
The State Department’s Office of Allowances on Sunday posted new allowance rates, which are designed to offset some of the cost differences of living overseas.
As a result of a stronger dollar, those living in Belgium, Germany, Italy and the United Kingdom will see their allowances slip. The rates are based on a number of factors, including location, number of dependents, market surveys and the exchange rate.
A married Defense Department employee with two children making $60,000 at most locations in Germany would receive an annual post allowance rate of $9,630 – down from $11,235. That’s roughly $62 less each pay period.
The same employee would receive $11,235 in Italy (down from $13,482), $8,075 in Belgium (down from $9,630) and $4,816 in the U.K. (down from $9,630).
The dollar reached a four-year high against the euro last week, but has gotten weaker since. So the rates could change again. They’ve already changed five times in Germany and the U.K. in 2010.