Post allowance to be cut in half in South Korea
YONGSAN GARRISON, South Korea — Civilian employees’ post allowance will be cut in half, just a month after it doubled.
Effective Nov. 13, the rate will be cut from 10 percent to 5 percent of a person’s spendable income, defined as the percentage of money a person spends off base for goods and services on the South Korean economy.
The cut comes as the American dollar has strengthened against the South Korean won. Wednesday at Community Bank, $1 equaled 1,156 won — 35 won more than Oct. 4, when $1 equaled 1,121 won.
Post allowance rates depend on a person’s income and the number in his or her family. A civilian making $51,000 to $54,999 annually now will get $1,395 per year as opposed to $2,790.
Only civilian U.S. government employees are eligible for post allowance.
Post allowance, partially tied to exchange rates, goes up when the won becomes stronger against the dollar.
The Office of Allowances uses a three-day average of exchange rates from military banks when recalculating post allowance.
The State Department’s Office of Allowances determines the additional money. It’s given to make up the difference between the cost of goods and services in Washington, D.C., versus a foreign post. If the cost of goods and services in a foreign area is 3 percent higher than Washington, post allowance is authorized.