What is a post differential?
What is a post differential?
Post differential is an additional compensation for service at places in foreign areas where conditions of environment differ substantially from conditions of environment in the continental United States and warrant additional compensation as a recruitment and retention incentive.
How is post differential pay calculated?
Post differential will be computed per the authorized rate for the post. The differential may not exceed 35 percent of the rate of basic pay for the employee for the period served. The differential is paid along with the regular biweekly payroll through the payroll system.
Is post hardship differential taxable?
Post Hardship Differential (DSSR 500), Danger Pay (DSSR 650), and Difficult-to-Staff Incentive Differential (also known as Service Needs Differential – SND) (DSSR 1000) are all considered recruitment and retention allowances. They are included in taxable income (DSSR 054.2).
How does post allowance work?
Post allowance is not based on a percentage of your salary, but is a cost index percentage between the Washington, DC area and the assigned post, and is based upon the number of family members residing at the post and the base salary.
What is differential allowance in salary?
Dearness Allowance(DA) is 20 % of the basic salary (It is optional and depends on the company policy and is taxable). Medical Reimbursement is Rs 15000 per year (Rs. 1250 per month) Leave Travel Allowance (LTA) is dependent on the company policy and exempted till a certain amount on the submission of invoices.
Who is entitled to post allowance?
When married couple employees or domestic partnership employees with family members are both eligible for the post allowance, one employee, at his/her option, may receive the post allowance for family members (Section 040m). The other employee may be granted the post allowance for one person only.
Does Cola get taxed?
The Overseas Cost of Living Allowance (COLA) is a non-taxable allowance designed to offset the higher overseas prices of non-housing goods and services.
Does Cola count as income?
Because COLA is tax-free, and Locality Pay is taxable. Moving from COLA to Locality Pay means more taxes for you.
Who is eligible for post allowance?
Why does post allowance fluctuate?
Post Allowance rate changes and amount will fluctuate due to foreign currency exchange rate as often as every payday without advance notification to the employee.
How is CTC calculated in salary?
CTC = Earnings + Deductions Here, Earnings = Basic Salary + Dearness Allowance + House Rent Allowance + Conveyance Allowance + Medical Allowance + Special Allowance.
How is salary package calculated?
How to Calculate your Take-Home Salary?
- In order to calculate your Take-Home Salary or Net Salary, follow these steps:
- Gross Salary= Basic Salary + HRA + Other Allowances.
- Alternatively,
- Gross Salary= CTC – (EPF + Gratuity)
- Taxable Income = Income (Gross Salary + other income) – Deductions.