Embarking on an overseas assignment opens doors to vibrant cultures, fresh experiences and once-in-a-lifetime adventures.
But whether you’re flying solo or moving your entire family, life abroad brings extra expenses – from higher grocery bills to travel logistics.
There are a range of overseas allowances designed to help smooth the way. Here’s everything you need to know to make the most of them…
LOCAL OVERSEAS ALLOWANCE
Day-to-day living costs abroad may often outpace UK expenses, from groceries and utilities to leisure activities. LOA is designed to contribute to the additional expense of living overseas compared with the UK for certain costs. The rate will depend on the location you are assigned to but applies equally, regardless of rank. Features of LOA include:
● Monthly Top-Up: Paid alongside your regular salary.
● Accompanied Premium: If you are accompanied by your spouse or civil partner you get an extra accompanied rate. If you have children you will also receive the extra child element for each child.
● Vehicle Bonus: Extra if you can demonstrate you are running two private vehicles whilst overseas.
Remember: LOA rates change twice a year and can go up and down, so be careful not to make your financial plan based on the current numbers.
OVERSEAS PRIVATE VEHICLE PROVISION
If you are taking your car overseas the costs of shipping, exiting a lease or selling it and buying another can add up fast. OPVP helps to soften the blow, it contributes towards the cost of taking one vehicle overseas and there are different options available.
You can choose to ship a car overseas, sell a car in the UK and buy another overseas or exit a lease. You can use a combination of selling a car and entering a lease. You can also use it when assigned back to the UK. The amount you would get to contribute towards this would be £1,093, effective April 2025 and reviewed yearly.
There are alternatives. Depending on where you are assigned to, you may be able to drive your car to the overseas location instead and claim Motor Mileage Allowance plus one day’s subsistence, up to the OPVP rate.
TAKE A BREAK
Respite Provision offers a much-needed breather in the form of a short stay away from your overseas duty station. Where you are assigned to determines how many days you can claim each year, and the maximum daily cap. Use your days in one extended break or sprinkle them through the calendar. Claims cover accommodation and travel but meals are self-funded. Simply submit receipts via JPA within 14 days of your return. You can even request up to 80 per cent of the expected reimbursement in advance.
GET YOU HOME OVERSEAS
GYH (O) covers one return flight back to the UK, or your domicile country, every 12 months for you and your immediate family, excluding children on school children’s visits.
Claims are submitted through JPA. You may be able to request up to 100 per cent of the fare in advance, ensuring your trip back is stress-free.
Remember: Each location has its own capped cost, so always verify your entitlement before you book.
The rates will change frequently and can go up or down, the rate that you receive will be at the time of booking. So, if you know the rates are going to decrease, book before they do.
ADVANCE OF PAY
There are some costs that may not be covered by MOD allowances when moving overseas, for example costs to transport pets. If you are facing initial set-up expenses, you could ask for an advance of pay. You can apply to borrow up to four months’ worth of the serving person’s net salary and then repay over 24 months or sooner.
DOES YOUR ASSIGNMENT TYPE MATTER?
Yes, the allowances detailed support those on regular postings overseas. If you are on Loan Service or Defence Attaché post, you may get different allowances or travel packages.
For example, those on a Defence Attaché posting may not receive LOA but may get a different package and Cost of Living Allowance (COLA).
Visit tinyurl.com/AFFmilallowances to find out more about what’s available.