# 2024-152 Pay and Benefits, Provisional Post Living Differential

Case summary

F&R Date: 2025-05-14

The grievor contended that the implementation of both the Canadian Forces Housing Differential (CFHD) and the Provisional Post Living Differential (PPLD) resulted in unfair financial compensation for Canadian Armed Forces (CAF) members. The grievor argued that the comparator values used are incorrect for Toronto. He also asserted that the way CFHD is administered means that the calculation is one year behind current rental market trends and does not accurately reflect the cost of living. The Director General Compensation and Benefits, the Initial Authority (IA), denied redress and explained that CFHD rates are calculated so that CAF members are not required to spend more than 25 per cent of their monthly income on housing which is based on comparator values provided by Treasury Board. As for PPLD, the IA found that the grievor was not eligible. 

CFHD. The Committee reviewed available resources and sought additional details from the CAF on the method used to establish the housing allowance. Market research and analysis of rental rates in approximately 103 locations across Canada was conducted by a third party. The CFHD amount for Toronto was derived using the median of the two-bedroom median rent values across nine different regions, including downtown Toronto. In other words, the CFHD rate for Toronto was based on a Greater Toronto Area methodology.

The Committee found that because the grievor's rental cost was 22.6% of his gross income, he did not require the assistance of the CFHD. As such, the Committee concluded that the grievor was treated fairly in accordance with the CAF and Treasury Board (TB) intent that members pay no more than 25% of their gross salary in housing costs.  

PPLD. The Committee highlighted that Compensation and Benefits Instructions for the Canadian Forces (CBI) article 205.4535(4) (Entitlement) limits entitlement to PPLD to Regular or Reserve Force members who were entitled to either Post Living Differential (PLD) or Transitional Post Living Differential on 30 June 2023. The CAF have no authority or discretion to pay the grievor PLD or PPLD except as authorized by the TB in the CBI.

The Committee found that the PPLD was never intended to apply to members, such as the grievor, who were posted into a former PLD area during Active Posting Season 2023. The PPLD bridging program was implemented to lessen the impact of the transition on those already receiving PLD before 30 June 2023 (CANFORGEN 120/23) and who would see a reduction or elimination of the PLD at their current location while their financial commitments did not change. Consequently, the Committee found that the grievor was not entitled to receive PPLD because he was not in receipt of PLD at his new location on 30 June 2023. As such, the grievor was treated fairly and in accordance with policy.

The Committee recommended that the Final Authority not afford the grievor redress.