Rental Subsidy

FAQ

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. 

Example:

Single JPO at salary level P2/1 serving in Copenhagen, Denmark (September 2014):

  • Monthly net salary: USD 3,901.58
  • Post Adjustment: USD 3,901.58 x 77.4 % = USD 3,019.83
  • Individual threshold (3,901.58 + 3,019.83) x 23 % = USD 1,591.92
  • Rent = USD 2,000 (excl. electricity)
  • Rental subsidy: (2,000 - 1,591.92) x 80 % = USD 326.46

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.

"What is the difference between "single rate" and "dependent rate" options used in the Rental Subsidy calculation sheet?"

The "dependent 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 agent/broker's 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 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 payment.

"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 adjus

Related content

 
 
Useful links
Download the guidelines
How to Apply for Rental Subsidy in HR eServices