The post-living differential is paid within Canada at locations where the local cost of living is assessed to be higher than the Canadian Forces weighted average cost of living for all members based in Canada. A post-living differential payment is not part of base salary; it is a supplement to offset higher local living costs. Runzheimer Canada, an internationally renowned company specializing in cost of living data collection and compensation development, collects the data for annual calculations. Rates are assessed annually and post-living differential payments are amended accordingly.
Approximately 47% of the regular force, 27,000 members, receives a post-living differential. In 2002, while certain locations experienced cost of living changes that reduced the differential between local costs and the weighted average Canadian Forces cost of living, other locations experienced differential increases. For instance, post-living differentials paid to Canadian Forces members living in Quebec City and Halifax were raised.
A post-living differential is not based solely on the local cost of living; rather, it is paid to offset the difference between various local living costs, and the Canadian Forces weighted average cost of living. Rates are based on several variables, such as local accommodation costs, and federal and provincial income tax rates. These variables are combined with other indicators to establish the local cost of living. These costs are then compared to the Canadian Forces weighted average cost of living. This difference between local costs and the Canadian Forces weighted average is adjusted by the provincial marginal tax rate and the resulting amount is published as the annual post-living differential rate. There is no need to provide additional income when post-living differential rates decrease because these changes only take effect after the relative cost of living has already decreased.
The Department of National Defence continues to monitor the post-living differential program to ensure fair and equitable treatment for all Canadian Forces members.
