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A subsistence allowance is any allowance given to an employee or a holder of any office for expenses incurred or to be incurred in respect of personal subsistence and incidental costs (for example, drinks, lunch, parking).
Post Allowance (DSSR 220): Commonly referred to as the "cost-of-living" allowance (COLA), this is an allowance based on a percentage of "spendable income," i.e. money you can really put your hands on to spend on goods and services. The amount varies depending on salary level and family size.
When married couple employees or domestic partnership employees with family members are both eligible for the post allowance, one employee, at his/her option, may receive the post allowance for family members (Section 040m). The other employee may be granted the post allowance for one person only.
All areas of the FTA are non-taxable.
Overseas allowances are pay supplements and are not included in regular salary or benefits base salary; the TLC benefit rate is applied to overseas allowances paid. Generally, there are three types of allowances: housing, living and education.

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A subsistence allowance is intended for abnormal circumstances and therefore an allowance of this nature cannot form part of the remuneration package of an employee. It is an amount paid by an employer to the employee IN ADDITION to the employee's normal remuneration.
Home Service Transfer Allowance (HSTA): The purpose of the HSTA is to help defray an employee's extraordinary but necessary and reasonable costs when s/he transfers from a foreign post to a post in the United States.
All areas of the FTA are non-taxable.
The Department of State Standardized Regulations (DSSR) are maintained by the Office of Allowances within the U.S. Department of State. Changes to the DSSR are proposed through an interagency and union consultation process.
Foreign Transfer Allowance (FTA): The purpose of the FTA is to help defray an employee's extraordinary but necessary and reasonable costs when he/she transfers to a post in a foreign area.

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