Appendix H - Criteria for Determining Levels

1. Environment Allowance (EA)

This allowance becomes payable when a post has satisfied those criteria governing its eligibility to be considered isolated under Sections 3.2 to 3.4 inclusive of this directive. The EA is assessed on the basis of population, climate and access. Points are allocated for various degrees of these factors as shown below. Subject to 1.14.2, the payment of this allowance is a basic prerequisite to all other provisions of this directive, except the Special Location Allowance, whichis outlined in Section 5 of this appendix

Population factor

Climate factor

Points 10 - 100

The features of this factor are the degree of wind-chill, the length of the period of darkness, annual precipitation and temperature variations. This factor is assessed from a climatological index map (prepared by the Climatological Division – Meteorological Branch – Department of Transport – Canada – 1969).

Access factor

Accessibility criteria are applied in the assessment of locations. Recognition is applied to two situations: "posts with no all‑weather road access" and "posts with all‑weather road access". Points are awarded as follows:

Posts with no all-weather road access

Posts with all-weather road access

Classification level

The point values as determined by the above factors are totaled to calculate the appropriate EA classification level:

The dollar amounts of EA are determined by referring the appropriate classification level of the post to Appendix B of this directive.

Using the criteria outlined in Part II and Appendix H of this Directive; Statistics Canada will review the EA level of a post during LCD survey visits and report discrepancies to the Treasury Board Secretariat.

Note: the classification levels have now been placed in an ascending order.

2. Living Cost Differential (LCD) Allowance

A LCD may be authorized at certain isolated posts where abnormally high prices prevail for food (purchased from stores and restaurants), household supplies and operations, household/tenant insurance premiums, transportation expenses, personal care supplies and services, pharmaceutical products (excluding prescribed drugs), entertainment supplies, rental of cablevision/satellite services, reading materials, tobacco and alcoholic beverages. This allowance for the isolated post becomes effective when the price of these goods and services, as measured by Statistics Canada, reaches an index level of 115 or higher in relation to an index of 100 at the point of comparison.

When Statistics Canada is unable to measure the LCD index by reason of the lack of response to surveys by employees, the National Joint Council, on the recommendation of the Isolated Posts and Government Housing Committee, may recommend the reduction or deletion of the applicable LCD index.

The rate of the allowance is related to the expenditures of Canadian families of 2 or more, on the approved basket of goods and services, as reported by Statistics Canada annually.

There are 16 LCD levels, which reflect 5-point ranges, and the following table illustrates the LCD classification levels applicable to the various index differential ranges. A price index at any point within a given range is measured from the mid‑point of that range.

The dollar amounts of the LCD are determined by referring the appropriate classification levels of the post to Appendix C of this directive.

Points of Comparison

Living Cost Differential indexes express the relationship, at a given point in time, between retail prices for an approved basket of goods and services at isolated posts in areas of Canada and the prices in one of the points of comparison as follows:

3. Fuel and Utilities Differential (F&UD) Allowance

A F&UD shall only be paid at designated isolated posts where the following conditions are met:

1. employees are required to pay for one or both of the actual fuel or utilities consumption directly to the supplier(s) or indirectly through an identifiable portion of their rent, and
   1. the isolated post experiences 6,000 Celsius degree-days or more annually; or
   2. the cost of F&UD is at least 15 per cent greater than the base city average cost.

The differential paid, determined by referring the appropriate classification level of the post to Appendix D of this directive, is based on the differential between the National Composite Billing cost for fuel and utilities plus 15 per cent, and the calculated F&UD cost at the isolated post.

4. Shelter Cost Differential (SCD) allowance

A SCD is payable to employees in private accommodation and in government housing at qualifying isolated posts to help offset the higher shelter charges experienced there, at the rates set out in Appendix K-1 and K-2.

5. Special location allowance

Locations will be added to Appendix G when:

1. a post is deleted from Appendix A and it qualified for a LCD or a F&UD at the time it was deleted, or
2. a location is 129 km or more from a location having a population of 10,000 or more, is 257 km or more from a location having a population of 50,000 or more, received 45 points or more in accordance with Section 1 of this appendix and qualifies for a living cost and/or a F&UD.

The aggregate amount of the allowance will be the sum of the appropriate rates of the LCD and the F&UD.

When the location no longer meets the criteria for the LCD and the F&UD outlined in this appendix it will be deleted from Appendix G.