Rental Subsidy - United Nations Development Programme

1 1 Rental Subsidy Document Properties Rental Subsidy Responsible Unit BOM Office of Human Resources (OHR) Creator OHR Policy Unit at Subject Human Resources Management > Salaries and Allowances (Global Payroll) > Allowances and Benefits > Rental Subsidy Issuance Date 1 October 2011 Effective date 1 October 2011 Planned Review Date 31 September 2012 Actual Review Dates 31 September 2012 Applicability UNDP internationally-recruited staff members in the Professional Category and above (including Temporary Appointments) governed by the UN Staff Rules and Regulations and who are in receipt of post adjustment.

2 Replaces All previous UNDP circulars and policies on the subject and any sections in the Personnel Manual Is part of HR User Guide | Relevant Policies | Roles and Responsibilities | Flowchart | Templates and Forms | Procedures | Additional Info. & Tools | Inputs | Lessons | Deliverables | On the Drawing Board D ES CR IPT ION The purpose of the Rental Subsidy scheme is to facilitate the settlement of new staff members and to encourage mobility within the UN Common System. It subsidises the Rental costs of eligible staff members whose Rental accommodations are of a reasonable standard but cost significantly more than the average for the duty station.

3 There are two different types of Rental Subsidy : 1-for staff members serving in Europe and 2 -North America and for staff members serving outside Europe and North America. Go to top RE LEV ANT P OL IC IES UN Administrative Instruction (ST/AI/2000/16) UN Information Circular (ST/IC/2000/90) Eligibility Internationally-recruited Staff Members in the Professional Category and above (including 2 Temporary Appointments) governed under the UN Staff Regulations and Staff Rules and who are in receipt of post adjustment. No Rental Subsidy shall be paid to staff who live in their own homes or who do not pay rent for their dwellings.

4 Period of Entitlement Staff members can apply for Rental Subsidy from the first day of the signed lease agreement following the end of the period during which the staff member was paid the daily subsistence allowance element of the assignment grant received on arrival at the duty station. For staff recruited at the duty station who did not receive an assignment grant on appointment, Rental Subsidy is payable from the date of initial arrival at the duty station and from the date of the signed lease agreement. Staff members assigned to duty stations in Europe and North America can receive Rental Subsidy for maximum seven years from the date of initial arrival at the duty station.

5 In cases of force majeure, Rental Subsidy can be paid for a maximum of five years counted from the first day of the new lease after the occurrence of the force majeure. When the Rental Subsidy is payable for part of a month, it shall be prorated in the proportion that the partial month bears to the full calendar month. Rental Subsidy is normally payable in United States Dollars. Should a staff member request payment of the Rental Subsidy in another currency it is subject to exceptional approval and will be payable in accordance with UN Operational Rate of Exchange prevailing on the date the payment is made.

6 Any fees associated with the payment of Subsidy in another currency is the responsibility of the staff member. Rent paid by the staff member Rent paid by the staff member is the recurring amount specified in the lease agreement, which the staff member agrees to pay for the right to live in the rented accommodation. This amount does not include other additional expenses either recurring or other utilities paid in addition to the rent. Individual threshold The individual threshold amount is established by applying the Rental Subsidy threshold percentage for a duty station to the staff member's income.

7 The Rental Subsidy threshold percentage is determined together with the post adjustment rates for a duty station by the International Civil Service Commission (ICSC). The threshold amount is determined at either single rate or dependency rate. The staff member is entitled to Rental Subsidy if the rent exceeds the individual threshold of the staff member. Staff members are expected to bear the rent up to the threshold amount without Subsidy . 3 Reasonable maximum rent level The reasonable maximum rent level for duty stations in Europe and North America are established by the Secretary General. The reasonable maximum rent levels for duty stations outside Europe and North America are determined by the authorized official at the duty station subject to local market conditions and in accordance with the criteria set out in the annex to ST/AI/2000/16.

8 Reimbursement rate The reimbursement rate for the Rental Subsidy at duty stations outside Europe and North America is 80 per cent of that portion of the rent paid by the staff member that exceeds the individual Rental Subsidy threshold, provided that the rent paid by the staff member does not exceed the reasonable maximum rent level. The reimbursement rate for duty stations in Europe and North America is determined based on the following table: Reimbursement rates 1st year 2nd year 3rd year 4th year 5th year 6th year 7th year Newcomers 80% 80% 80% 80% 60% 40% 20% Force majeure 80% 80% 60% 40% 20% Maximum and Minimum Amounts of Rental Subsidy The maximum amount of Rental Subsidy is 40 per cent of the rent paid by the staff member, or of the applicable reasonable maximum rent level, whichever is lower.

9 However, for specific duty stations outside Europe and North America, ICSC has waived that ceiling, or established a higher ceiling. These countries are referred to as W40. If the payable monthly Rental Subsidy amount is equal to or lower than $10 US dollars, or the equivalent amount in local currency, no Rental Subsidy shall be paid. No Rental Subsidy is payable for the amount of rent paid by the staff member, which is in excess of the determined reasonable maximum rent level. Mission Detail and Temporary Assignments Staff members, who travel on mission detail or temporary assignment to another duty station, shall continue to receive the post adjustment at their parent duty station including Rental Subsidy , provided all applicable conditions are met.

10 In such cases, the Rental Subsidy shall not be payable in respect of rented accommodation at the mission area duty station, or at the duty station where the staff member is on temporary assignment. Both Spouses are UN Staff Members If both spouses are eligible for the payment of a Rental Subsidy at different duty stations, the Rental Subsidy shall be payable to each on the basis of his or her respective income. If both spouses are eligible for the payment of a Rental Subsidy at the same duty station, only one Subsidy shall be paid. It 4 shall be computed on the basis of the higher of the two incomes.