Benefits and Entitlements - Rental Subsidy
You can use this link to estimate your rental subsidy.
"How much will I get in rental subsidy?"
- The amount of rental subsidy that a JPO is entitled to depends on five factors:
- Monthly net salary
- Post Adjustment
- Individual threshold percentage
- Monthly rent paid
- Reasonable maximum rent level at duty station
- As a basic rule, the rental subsidy equals (monthly rent - individual threshold)
x 80%, where the individual threshold is calculated as (monthly net salary +
post adjustment) x individual threshold percentage. However, the rental subsidy can never exceed 40%
of monthly rent, and the rent will only be subsidized up to the maximum reasonable rent level in a
given duty station.
- If electricity is included in the rent, a deduction will be made.
Single JPO at salary level L-2/1 serving in Copenhagen, Denmark (May 2002):
Monthly net salary: USD 40,191 / 12 = USD 3,349.25
Post Adjustment: USD 3,349.25 x 16.5 % = USD 552.63
Individual threshold (3,349.25 + 552.63) x 26 % = USD 1,014.48
Rent = USD 1,200 (excl. electricity)
Rental subsidy: (1,200-1,014.48) x 80 % = USD 148.42
- In field duty stations where housing is provided by the government or others for free or at a very
low price, the JPO may be subject to rental deductions. The reason for this is that housing expenses
are included in the post adjustment, which all staff members receive.
"How do I apply for rental subsidy?"
- If you serve in a field duty station, you fill out the Rental Subsidy Application for Country Offices
and submit it to your HR Associate at the JPO Service Centre once it has been signed by yourself and the
- If you serve in a Headquarter duty station, you fill out the Rental Subsidy Application for North
America & Europe and submit it directly to your HR Associate at the JPO Service Centre.
- Applications can be sent to us by fax or scanned as attachment to an e-mail. It will usually
take up to six weeks from when we receive your application and all relevant documentation until
the rental subsidy is included in your salary. If you forget to submit your application
when your lease agreement starts, you can submit it as soon as you remember - payments will be
made retro-actively, if you are entitled to them.
- You are not entitled to rental subsidy for the first 30 days after
your Entry on Duty (EOD), as you are paid Daily Subsistence Allowance (DSA) during this period.
"What is the difference between "single rate" and "dependant rate" options used in the Rental Subsidy calculation sheet?"
- The "dependant rate" is only used if a Staff Member's spouse and/or child has been recognized as an eligible dependant by the Organization and the salary is at the dependency rate also. If no spouse or child is recognized as an eligible dependant, the salary is at single rate and the "single rate" option is selected in the Rental Subsidy calculation sheet.
"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.
"If I live in the tri-state area (New York, New Jersey, Connecticut) am I entitled to rental subsidy?"
- If a staff member has lived in the tri-state area (New York, New Jersey, Connecticut) for more than 7 years before being recruited as as UNDP staff member, s/he is not eligible for rental subsidy: the period of eligibility for Headquarters-based staff is limited to seven years from the date in which the person took up residency in the states of New York, New Jersey or Connecticut, regardless of the date of appointment (or regardless of the date of promotion from a status which does not grant rental subsidy - G-level contracts for example - to a professional status granting rental subsidy).
- If for some reason the staff member was living outside of the tri-state area (New York, New Jersey, Connecticut) or in another country immediately before being recruited, the count starts from the beginning of the contract in terms of rental subsidy reimbursement ratio.
"Why didn't I get rental subsidy this month?"
- Rental subsidy applications need to be re-submitted every 12 months. The same application formats are
used, but you need to check the "annual re-submission" box instead of the "first submission" box. If we
do not receive an annual re-submission, rental subsidy will stop automatically. If you are still entitled
to rental subsidy, send us the annual resubmission as soon as you can and we will process it retro-actively.
- Another reason that your rental subsidy stops could be that your
individual threshold was raised, either through an increase in your net salary, the post adjustment or
the individual threshold percentage. Note that your rental subsidy is subject to a $10 minimum monthly
"What is the W40 Rule for certain Country Offices? [Currently Egypt and Zambia]"
- When calculating a rental subsidy in a Country Office, the normal rule is to compare line 10 (80% of rent minus threshold amount) and line 11 (40% of rent for purposes of subsidy calculation) in the Rental Subsidy Calculator, and take the lowest amount as entitled subsidy.
However, for countries marked with W40 in the Post Adjustment table (currently Egypt and Zambia), line 10 is automatically selected (no comparison).
Extract from Circular ST/AI/2000/16:
"12.5 In accordance with section 3.6, the amount of a rental subsidy shall not exceed 40 per cent of the rent paid by the staff member, or 40 per cent of the applicable reasonable maximum rent level, whichever is lower. However, the 40 per cent ceiling may be waived or raised by ICSC for specific duty stations outside Europe and North America when commercial rents are considerably higher than the rental component of the post adjustment index."
To find out more...