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GAO: Overseas Allowances: State Should Assess the Cost-Effectiveness of Its Hardship Pay Policies

September 1, 2017

Pursuit's Take

The Department of State provides two types of additional compensation for employees working in challenging overseas areas: hardship pay and danger pay. When employees temporarily leave those posts, State adjusts the pay.

While danger pay is automatically adjusted, State’s procedures for adjusting hardship pay are resource intensive—involving 10,000 manual adjustments each year—and contributed to $2.9 million in payment errors between 2015 and 2016.

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