Local Overseas Allowance – LOA

The aim of LOA is to contribute towards the necessary additional cost of day-to-day living when Service personnel (SP) are assigned or deployed overseas at public expense. It recognises the amount by which average essential day-to-day expenditure in an overseas location differs from that in the UK and is made up of the following:

  1. Cost of Living Element – An element to recognise the relative difference in the average cost of living between the UK and the overseas location. The UK side is underpinned by data from the Office of National Statistics’ Living Cost and Food Survey and the overseas side is based on commercial data from Employment Conditions Abroad (ECA);
  2. Environmental Factor – An element to recognise specific environmental factors at a location is added where applicable; this is also provided by ECA;
  3. Location Factor –An element to contribute towards additional expenses such as legal requirements and other additional necessary costs specific to an overseas location.

LOA Area – A LOA area is a whole country or, exceptionally, part of a country, as indicated when LOA rates are published. The LOA rate, which is non-taxable, is normally determined by the location of the duty station, but where SP are, for service reasons, accommodated in Service provided accommodation in a different country, the LOA rate will be based on where the SP is accommodated. US LOA Areas are aligned with the Census Regions and Divisions of the US, a map of which can be found here.

Rates – LOA is paid through salary and is dependent on accurate personal details. SP must notify Unit HR immediately of any temporary or permanent changes that could affect entitlement to LOA, e.g., the arrival or departure of their spouse/civil partner and/or any child at the duty station, or a change in their Personal Status Category (PStat Cat). Failure to do so may result in the SP later becoming liable for the recovery of overpayments of LOA. LOA rates can be found via MODNET.


The following additional provisions are available to qualifying SP:

Overseas Private Vehicle Provision (OPVP) – SP who are permanently assigned to an overseas location and in receipt of permanent rates of LOA may be eligible to claim OPVP to assist them with access to a private motor vehicle in the assignment location. OPVP provides a contribution (up to a capped maximum) towards either: the cost of privately shipping one car to/from the permanent assignment location; the administrative and vehicle depreciation costs when selling and buying a vehicle; or the charges incurred when SP are required to cancel a vehicle lease agreement.

Second Vehicle Provision – Accompanied PStat Cat 1 SP (including PStat Cat 1s/c)) in receipt of LOA may be eligible for an additional daily contribution towards the cost of running and maintaining a second vehicle in the overseas assignment.

Respite Provision (RP) – SP, irrespective of PStat Cat, who are permanently assigned to an overseas location and in receipt of permanent rates of LOA are eligible to claim RP. The aim of RP is to contribute towards the travel and accommodation costs of SP and their accompanying immediate family in order to achieve overnight respite from their duty station.

For further information on LOA and the Second Vehicle Provision, including eligibility criteria, qualifying criteria, and entitlement, refer to JSP 752, Chapter 9, Section 7.

For further information on OPVP, including eligibility criteria, qualifying criteria, entitlement and rates, refer to JSP 752, Chapter 9, Section 4.

For further information on Respite Provision, including eligibility criteria, conditions, entitlement, reimbursement limits and rates, refer to JSP 752, Chapter 9, Section 5.

Contact: [email protected]

Last Updated: Jul 19, 2022 @ 3:24 pm

Scroll to Top