1. Environment Allowance (EA)

This allowance becomes payable when a post has satisfied those criteria governing its eligibility to be considered isolated under Sections 2.3 to 2.5 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 subsection 1.14.2, the payment of this allowance is a basic prerequisite to all other provisions of this directive, except the Special Location Allowance, which is outlined in Section 5 of this appendix.

Population factor

Population

Points

1 – 24

70

25 – 99

50

100 – 499

40

500 – 999

35

1,000 – 1,999

30

2,000 – 4,999

25

5,000 – 7,499

15

7,500 – 9,999

5

10,000 or more

0

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).

Climate Index

Points

80

100

75

95

70

90

65

85

60

80

55

75

50

60

45

55

40

50

35

35

30

30

25

25

20

20

15

15

10

10

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

 

Points

No all-weather road (automatically assigned) and, additional points allocated as follows

15

No scheduled air or rail passenger services; or

15

Scheduled service 1 to 3 days per week; or

10

Scheduled service more than 3 days per week.

5

Maximum points possible

30

Posts with all-weather road access

 

Points

Over 803 kilometres from a population centre more than 15,000; or

15

483 to 803 kilometres from a population centre more than 15,000; or

10

402 to 482 kilometres from a population centre more than 15,000; or

5

Less than 402 kilometres from a population centre more than 15,000.

0

Maximum points possible

15

Classification level

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

Level of Post

Point Range

Does not qualify

0 – 44

1

45 – 54

2

55 – 69

3

70 – 99

4

100 – 134

5

135 or higher

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

An 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.

Price Index Differential Ranges

Post Classification

115-119

1

120-124

2

125-129

3

130-134

4

135-139

5

140-144

6

145-149

7

150-154

8

155-159

9

160-164

10

165-169

11

170-174

12

175-179

13

180-184

14

185-189

15

190

16

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:

St. John's, NL:

Newfoundland and Labrador

Montreal, QC:

Gaspé Peninsula (QC)

 

Îles de la Madeleine (QC)

 

North Shore of Quebec

 

Hudson/James Bay (QC)

 

Nunavut (Baffin) & Ungava Bay

 

Labrador City, NL

 

Wabush, NL

Toronto, ON:

James Bay, ON

 

Peawanuck, ON

 

Pelee Island, ON

 

Seine River, ON

Winnipeg, MB:

Manitoba

 

Northwestern Ontario

 

Nunavut (Kivillaq)

Saskatoon, SK:

Saskatchewan, SK

Edmonton, AB:

Alberta

 

Northwest Territories

 

Cambridge Bay, NU

 

Gjoa Haven, NU

 

Kugluktuk, NU

 

Taloyoak, NU

 

Fort Nelson, BC

 

Toad River, BC

Vancouver, BC:

British Columbia

 

Yukon

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

An 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

An 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 an LCD or an 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 an 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.