- Environmental Allowance
- Living Cost Differential
- Fuel and Utilities Differential
- Shelter Cost Differential (SCD)
- Meals or Rations
Environmental Allowance
References: s.1.7, Appendices A (http://www.njc-cnm.gc.ca/directive/ipgh-dpile/ipgh-dpile-a-a-eng.php), B (http://www.njc-cnm.gc.ca/directive/ipgh-dpile/ipgh-dpile-a-b-eng.php) & H (http://www.njc-cnm.gc.ca/directive/ipgh-dpile/ipgh-dpile-a-h-eng.php)
Description
In order to qualify as an isolated post, a location must meet the criteria outlined in Part II of the Directive qualifying it for an environment allowance. Qualification for an environment allowance is a prerequisite for all other allowances and, subject to 1.14.2, benefits under this Directive, except for the special location allowance.
Methodology
The environmental allowance becomes payable when a post has satisfied those criteria governing its eligibility to be considered isolated under sections 2.1 to 2.4 inclusive of the Directive. The environment allowance is assessed on the basis of population, climate and access. Points are allocated for various degrees of these factors as outlined in Appendix H. Total point values shall determine post classification at one of 5 levels. A minimum of 45 points is required to qualify.
Population
An 8-level population scale
Climate
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 on a 25-year average from a map prepared by the Department of the Environment for this purpose.
The new designation criteria redistribute the points formerly allocated to the Lands factor to the Climate factor. The redistribution is based on a regression analysis that found that a relationship exists between the climate factor and the lands factor in that the lands features become more apparent and has a greater impact on posts further north. The redistribution of those points is now reflected in Appendix H of the new directive.
Access
Points awarded depending on access or to an all-weather road or no all-weather road, availability of scheduled air or rail passenger service and road distance from population centers.
Review Process
Review of classifications is ongoing, with a formal reappraisal every 5 years after the Canadian Census is published. The value of environmental allowances is updated annually effective August 1st.
Approval Process
Authority to approve delegated to the Isolated Posts and Government Housing Committee with disputes referred to the Executive Committee.
Communication of Decision
After approval, Appendix A for classification level and Appendix B for allowances are amended accordingly and published by the NJC.
Living Cost Differential
References: s.1.8, Appendices A (http://www.njc-cnm.gc.ca/directive/ipgh-dpile/ipgh-dpile-a-a-eng.php), C (http://www.njc-cnm.gc.ca/directive/ipgh-dpile/ipgh-dpile-a-c-eng.php) & H (http://www.njc-cnm.gc.ca/directive/ipgh-dpile/ipgh-dpile-a-h-eng.php)
Description
A living cost differential is payable at certain isolated posts where prices for food and other goods and services are abnormally high in relation to the location identified as point of comparison.
Methodology
A living cost differential 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, personal care supplies and services, pharmaceutical products, entertainment supplies, rental of cablevision/satellite services, reading materials, tobacco and alcoholic beverages. This allowance for the isolated post becomes effective when the prices 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 index by reason of the lack of response by employees to mail survey questionnaires, the NJC, on the recommendation of the Isolated Posts & Government Housing Committee, may recommend the reduction or deletion of the living cost differential level.
The amount of the allowance is related to the Canada average based on the expenditures of a family of 2 or more for the range of goods and services covered.
There are 16 LCD levels, which reflect 5-point ranges.
Review Process
Review is done on a three and one-half-year cycle, with two regions being surveyed each year and Statistics Canada recommends adjustments to classifications of posts, where necessary, following surveys. The value of the living cost differential allowance is updated annually accordingly effective August 1st.
Approval Process
Authority to approve is delegated to the Isolated Posts and Government Housing Committee with disputes referred to the Executive Committee.
Communication of Decision
After approval, Appendix A for classification levels and Appendix C for allowances are amended accordingly and published by the NJC.
Fuel and Utilities Differential
References: s.1.9, Appendices A (http://www.njc-cnm.gc.ca/directive/ipgh-dpile/ipgh-dpile-a-a-eng.php), D (http://www.njc-cnm.gc.ca/directive/ipgh-dpile/ipgh-dpile-a-d-eng.php) & H (http://www.njc-cnm.gc.ca/directive/ipgh-dpile/ipgh-dpile-a-h-eng.php)
Description
A fuel and utilities differential is payable at designated posts to assist employees to meet abnormally high prices for fuel and utilities, provided employees are paying fuel and utility charges directly to the supplier. These prices are caused by higher transportation costs and consumption rates imposed by the geographical location of the isolated post.
Methodology
A fuel and utilities differential shall only be paid at designated isolated posts where the following conditions are met:
- employees are required to pay for one or both of the actual fuel or utilities consumption directly to the supplier(s); or
- employees are renting private accommodations and are paying indirectly through an identifiable portion of their rent; and
- the isolated post experiences 6,000 Celsius degree-days or more annually; or
- the cost of fuel and utilities is at least 15 per cent greater than the point of comparison's 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 Average Expenditure for fuel and utilities plus 15 per cent, and the calculated fuel and utilities expenditure at the isolated post.
Review Process
Statistics Canada conducts an annual review of post classifications and recommends adjustments where necessary. Since the results are not released until the following year, any increases to the allowances are effective October 1 of the previous year.
Approval Process
Authority to approve is delegated to the Isolated Posts and Government Housing Committee with disputes referred to the Executive Committee.
Communication of Decision
After approval, Appendix A is amended accordingly to reflect new fuel and utilities levels and published by the NJC.
Shelter Cost Differential (SCD)
References: s.1.10 (https://njc-cnm.gc.ca/directive/d4/v237/s618/en#s618-tc-tm_2_4), Appendix K-1 (http://www.njc-cnm.gc.ca/directive/ipgh-dpile/ipgh-dpile-a-k1-eng.php) and K-2 (http://www.njc-cnm.gc.ca/directive/ipgh-dpile/ipgh-dpile-a-k2-eng.php)
A shelter cost differential is payable at designated isolated posts where shelter costs are abnormally high in comparison to the national average rent for a similar unit at the 12 points of departure cities designated in the Directive.
Methodology
"Private Accommodation"
The SCD represents the difference between the average rent for a three-bedroom detached bungalow at the isolated post and the national average rent for a similar unit at the 12 locations identified as points of departure in the Directive.
"Government Housing"
The SCD represents the difference between the current average base shelter value for all three‑bedroom single-detached government housing units at the post and the national average rent for a similar unit at the 12 locations identified as points of departure.
The national model used by the Canada Mortgage and Housing Corporation is a 1200 sq. foot single detached bungalow with overall average conditions and undeveloped basement.
Review Process
The Canada Housing and Mortgage Corporation will review the base shelter values and the national average rent annually, normally in January. The timing coincides with the review of the base shelter values, to maintain the relativities with the average rent. Adjustments to the SCD, as a result of this review, shall be effective August 1.
Approval Process
Authority to approve is delegated to the Isolated Posts and Government Housing Committee with disputes referred to the Executive Committee.
Communication of Decision
After approval, Appendix K-1 and K-2 is amended accordingly and published by the NJC.
Meals or Rations
References: s. 1.17 (https://njc-cnm.gc.ca/directive/d4/v12/s120/en#s120-tc-tm_5_1), Appendix I (http://www.njc-cnm.gc.ca/directive/ipgh-dpile/ipgh-dpile-a-i-eng.php)
Description
When employees and their dependants, if any, are provided with meals or rations by or on behalf of the employer, they shall be charged for meals or rations at the rates specified in Appendix I (of the IPGHD).
Methodology
The meals or rations rates are calculated by the Department of National Defence (DND) taking into account the basic food cost (BFC) and the weighted average labour cost per meal day (i.e. 3 meals per day) calculated from the previous fiscal year for each military base. The average basic food cost, plus the average labour cost per meal-day are then multiplied by 296 days. This annual total is divided by 12 to obtain the monthly charge.
Review Process
The rates are updated annually effective August 1.
Approval Process
In accordance with the methodology and paragraph 1.17.6 of the IPGHD, the Treasury Board Secretariat may vary the rates annually.
Communication of Decision
After approval, Appendix I is amended accordingly to reflect the new rates and published by the NJC. A notice is also published on the TBS Web site.