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Allowances & Benefits home

Purpose: The rental subsidy and deduction scheme is designed to provide equity in accommodation expenses among UN staff in duty stations where rents vary considerably; and to alleviate hardships of staff facing higher than average rent costs for reasonable standard accommodations.

Types: There are two different types of the rental subsidy and deduction schemes:

• Rental subsidy and deduction scheme for duty stations in Europe and North America;
• Rental subsidy and deduction scheme for duty stations outside Europe and North America.

Rental subsidy and deduction scheme FOR DUTY STATIONS IN EUROPE AND NORTH AMERICA

WHO IS ELIGIBLE?

• Staff serving in duty stations in Europe/ North America;
• Staff subject to post adjustment or monthly mission allowance;
• Technical co-operation project personnel, staff in Field Service and Professional (Ps) and higher categories (Ds);
• Newly appointed or reassigned staff ('Newcomers'); they enjoy a seven-year period of subsidy eligibility;
• Staff members forced to change dwelling due to circumstances beyond their control (affected by 'Force Majeur'); they have only a five-year subsidy eligibility, reviewed by a special administrative panel.

  WHEN DOES THE SUBSIDY NOT APPLY?

• For staff on a temporary appointment;
• The period during which a staff member is on a UN mission assignment and continues to receive emoluments of the parent duty station;
• The period during which a staff member is receiving Daily Subsistence Allowance (DSA) instead of post adjustment, usually the first 30 days following arrival in a duty station;
• The period during which a staff member's assignment grant has been extended.

  WHAT IS REASONABLE MAXIMUM RENT LEVEL?

• It is the yardstick against which the reasonableness of accommodation is assessed;
• It is based on family size (i.e., recognized spouse and dependants residing with staff member) and on a survey of rent levels in the local market. ?In view of representational responsibilities, an adjustment is made in the maximum allowable rent for D-1 and higher staff;
• If actual rent paid by staff member exceeds the applicable maximum reasonable rent, the latter is used in the subsidy formula.

  WHAT IS A RENTAL SUBSIDY?

• Subsidy rates provided for the portion of the rent (subject to reasonable maximum rent level) exceeding the Individual rental subsidy threshold vary as follows:

• Up to max. 40% of rent paid;
• Normally payable in local currency.

  WHAT IS A SUBSIDY FOR AN AGENT'S FEE?

• A subsidy to cover an agent's fee will be only issued once to staff qualifying for a rental subsidy;
• The subsidy will not affect the seven or five-year eligibility period and will be treated as a one-time rental expenditure using the rental subsidy formula;
• Only licensed rental agents/brokers' fees qualify;
• The subsidy request must be included in the original rental subsidy application;
• Should the rent upon which the fee is calculated exceed the reasonable maximum rent level, only the portion of the fee corresponding to the latter will be subject to the rental subsidy formula.

  For sample calculations, please click here.

Rental subsidy and deduction scheme FOR DUTY STATIONS OUTSIDE EUROPE AND NORTH AMERICA

WHO IS ELIGIBLE?

• Staff serving in duty stations outside Europe/ North America;
• Staff subject to post adjustment or monthly mission allowance;
• Technical co-operation project personnel, staff in Field Service and Professional (Ps) and higher categories (Ds);

  WHEN DOES THE SUBSIDY NOT APPLY?

• The period during which a staff member is on a UN mission assignment and continues to receive emoluments of the parent duty station;
• The period during which a staff member is receiving Daily Subsistence Allowance (DSA) instead of post adjustment, usually the first 30 days following arrival in a duty station;
• The period during which a staff member's assignment grant has been extended.

  WHAT IS A STANDARD RENTAL SUBSIDY?

• 80% of portion of rent exceeding the individual rental subsidy threshold;
• Up to max. 40% of rent;
• Normally payable in local currency.

  WHAT IS A MODIFIED RENTAL SUBSIDY?

• In duty stations where most of the staff stays in government-provided housing and commercial rents are substantially higher (you can find these stations in ICSC monthly circulars);
• 80% of difference between average commercial rent and Rental threshold; OR
• 90-95 % of difference between rent paid and average commercial rent.

  For sample calculations, please click here.

Rental deductions

• For staff receiving housing assistance by the Organization, a Government or a related institution;
• Staff should report annually, on form P. 84, housing assistance received;
• Newly recruited or reassigned staff to a new duty station should submit form P. 84 upon arrival, otherwise automatic rental deductions will occur whether or not housing assistance is provided;
• 80% of difference between rent paid and individual rental deduction threshold. ?In cases of provided housing below average standard, rental deduction becomes one half of the rental deduction.

How to define THRESHOLDS

* This is established for each duty station by the International Civil Service Commission (ICSC).

** Income = Net base salary + special post allowance (if any) + post adjustment or monthly mission allowance + basic rate of assignment allowance.

Combined rent

• Is when a staff member's housing expenditures in a duty station outside the capital city of the country of assignment and the rental paid for the family's accommodation in another location in that same country are considered, for administrative purposes, as one single rent;
• Applies when the duty station lacks appropriate schools and medical facilities for the family members' needs, when family members have traveled at UN expenses and settled in the capital or another city with appropriate educational and medical facilities, and when a staff member is obliged to rent at both locations;
• Does not apply when a staff member leaves the family at the home country, a third country or another location than the duty station in the country of assignment for any reasons not related to education or healthcare (i.e., general convenience of the spouse or children);
• All rules, standards and thresholds related to the rental subsidy/deduction scheme shall apply (i.e., the reasonable standard of rented accommodation).

When to submit a rental subsidy application form? + A copy of lease or receipt

• Upon arrival at the new duty station or when housing assistance is received;
• When a change of accommodation occurs;
• When a change in rent occurs;
• When changes in family size occur (dependency status) following marriage, birth or adoption, spouse/children joining staff member at duty station.

Sample calculation of rental subsidy & deduction:

i) In Europe & North America

ii) Outside Europe & North America

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