CHANGES IN DIFFERENTIALS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-04724A000200050020-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 9, 2016
• Document Release Date: July 27, 2000
• Sequence Number: 20
• Content Type: REPORT

- Approved F
i,~,Q00/08/2
78-0472000200050020-7
CHANGES IN DIFFERENTIALS
25X1 C
25X1 C
post for a definite amount of total compensation.
The Organization frequently receives communications from
overseas personnel,
commenting on reductions in foreign post differen-
tial rates. Communications have at times contained state-
ments that such reductions represent a "breach of faith"
inasmuch as the individual accepted employment at a particular
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t tkdifferentials vatem ~~U all allowances and t eAfurther
+t,._ important fact/ that differentials and allowances are subject
to periodic revision. Failure toy" :< may
be the for taking exception to future changes in
allowances. Accordingly, personnel are again reminded that:
1. The differential is considered to be a bonus in the
form of additional compensation for service at a.
less desirable post, and as such it is subject to
income tax.
Approved Fo1r R, as 2000/08/
'n% document is part of an Integrated
file. If separated from the His it must h
subjected to lnelividvu;, r,;~:st :o rsvii1w
78-04724A000200050020-7
 Approved For`RelI9 p ,2000/08/29. 1 8-0472000200050020-7
2. Differentials are calculated upon criteria prescribed
by statutes and executive order, which provide that
a differential may be authorized when, and only when,
living conditions at a post differ substantially
from living conditions in our country; particularly
when a post imposes extraordinarily difficult
living conditions, excessive physical hardships, or
notably unhealthful conditions.
3. All foreign assignments are expected to involve
some difference in living conditions in comparison
with those in our country. Only when this difference
develops hardship to a predetermined minimum is a
4
101 differential warranted. Successively greater
degrees of difference result in differentials of
155, 20 ,and 255.
4. Differentials are a recruitment and retention
incentive to personnel who are willing to accept
assignments involving unusual hardships. Never-
theless, reviews must be undertaken periodically to
determine the need for continuance. orders
require review at least annually/ of the places
Approved For el,~ape ?000/08/29 : CIA-RDP78-04724A000200050020-7
 Hpprovea ror rcei
designated, the rates fixed, and the regulations
prescribed 4 sui~= a~ :.M
xinsure that the payment of additional compen-
sationer, continue only
conditions justifyis" k payment and ' not
in any instance excee (the a.moun4justified.
5. Differential rates are accordingly revised when
periodic reviews disclose changes in living con-
ditions. Reviews may disclose a gradual improve-
ment at a post, yet the current degree of improve-
ment not sufficient to warrant an immediate
i~ A: 14
decrease in the differential. an accum-
ulation of gradual improvements noted by succeeding
reviews may be the basis for a decrease at a
later date. Such a decrease could become effective
while an individual is en route to the post or
shortly after arrival.
It is believed a better understanding of the purpose
and basis for determining foreign post differentials will be-.
benefit W all concerned.
Approved For Release 2000/08/p,9 : CIA RQP78-04724A000200050020-7