Understanding Post Hardship Differential Under Department of State Standardized Regulations
Definition & meaning
The post hardship differential is an additional payment provided to employees working in challenging foreign environments. This compensation is above their basic salary and is intended to attract and retain staff in locations where living and working conditions differ significantly from those in the continental United States. The hardship differential is calculated as a percentage of the employee's basic salary, with increments available at five percent intervals, including 5, 10, 15, 20, 25, 30, and 35 percent.
Legal use & context
This term is primarily used in the context of employment law, specifically for government employees and those working in international positions. It serves as a recruitment and retention tool for positions in foreign service where conditions may be less favorable. Understanding the post hardship differential is essential for employees considering overseas assignments and for employers managing compensation packages.
Real-world examples
Here are a couple of examples of abatement:
Example 1: An employee assigned to a U.S. embassy in a country with high security risks may receive a 25 percent post hardship differential added to their salary due to the challenging living conditions.
Example 2: A worker stationed in a remote area with limited access to healthcare facilities may qualify for a 30 percent hardship differential to compensate for the difficult environment. (hypothetical example)