![]() Environmental Factor (EF): This reflects the lived experience overseas in comparison with that in the UK.Cost of Living (CoL): This element determines the difference in the cost of living between the UK and the overseas location.The daily rate is comprised of three separate elements that address different types of additional costs related to living overseas. The Daily rateĪll service personnel who are eligible for LOA will receive a daily rate based on where they are serving overseas, which is paid alongside monthly salaries. These additional contributions will be accessible only to service personnel on permanent assignments overseas. As such, when comparing the new LOA with the current it is important to compare the overall package rather than making a straight comparison between daily rates. Currently, these two provisions are included in the overall LOA daily rate which is spread throughout the assignment. It will also be more fairly distributed across the ranks, to reflect that all personnel incur these same costs and rank is already reflected within Basic Pay. The new construct better reflects the actual costs incurred by service personnel and enables them to claim Vehicle and Respite provisions when they incur the costs. The new LOA package is made up of the LOA daily rate and two needs-based provisions that contribute towards your overseas private vehicle and respite (travel and accommodation) costs. All increases in rates will immediately take full effect on 1 July 2021. This will ensure that service personnel do not experience a single significant shift in the rate during the transition period. This transition is based on a (maximum) 25% of the difference between the existing and future rate each year. However, any locations that see a significant reduction in the daily rate of LOA, will have their rates reduced over a period of up to three years (1 July 2021 to 1 July 2024). Transitioning to the new LOA packageĪll service personnel receiving LOA on 30 June 2021 will automatically transfer on to the new LOA package on 1 July 2021. The changes will be fully implemented over a three-year transition period. This new transparent system means the amount offered to service personnel will not be associated to rank. This modernisation means service personnel will see changes to the rates of LOA, which could increase, although some will decrease depending on the current rank-related level they receive and the location they serve. The new methodology is based on commercially available data used by multi-national corporations as well as the Foreign, Commonwealth and Development Office ( FCDO), and is needs-based. One of the most significant changes will be the introduction of a single band for all service personnel regardless of rank, removing the previous rank-based banding system. The changes are the result of a thorough review of the current methodology, in place since 1981, which has taken more than three years to complete. They do not impact eligibility or other allowances and are not a saving measure but designed to be cost neutral. The changes will make the allowance more transparent, fairer to all service personnel, and improve oversight. A useful idea is to email yourself a scan or picture of your passport and important documents, so that you can access them wherever you are.From 1 July 2021, the way in which the Armed Forces’ Local Overseas Allowance ( LOA) is calculated will be changing. Keep electronic and paper copies of your passport, and other necessary documents, safe but accessible to you while away (e.g. Your location and circumstances may limit the help we can give you. We will do our best to help you as quickly as possible but it can take some time. If required, provide advice and assistance in applying for new passport.An emergency travel document that will get you home.Staff in our Embassy or Consulate can give you: We will not provide you with a new travel document without a police report. You will need a police report if you want to make a claim on your travel insurance. There are some things you can do to make the situation easier to resolve. Losing your passport or other important documentation or having them stolen while you’re abroad can be a real headache. But if your passport is lost or stolen abroad, we can help. Your passport is an important document and should always be kept safe.
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