What it means
A relocated worker often pays for many small things at once, such as temporary lodging, deposits, basic household items and local transport. A settling-in allowance gives some cash early, instead of making the worker wait for receipts to be reimbursed.
The United Nations staff rules give one documented example. Rule 7.11 says its settling-in grant is meant to provide a reasonable amount of cash at the start of an assignment, on the assumption that the main installation costs come at the outset.
That grant has two parts: a daily subsistence allowance for 30 days for the staff member, plus 30 days at half rate for each eligible family member, and a lump sum based on one month of net base salary and, where appropriate, post adjustment at the new duty station. The rule also shows why details matter.
A staff member on a temporary appointment gets only the daily subsistence portion, for themselves, while a fixed-term or continuing appointment for one year or more can receive both parts. The 30-day period may be extended to 90 days under conditions set by the Secretary-General, at up to 60% of the prevailing rate.
Returning to a place can change the amount. The rule says full payment is not normally due unless the person has been away for at least one year, and a shorter absence usually leads to a proportion of the grant.
UNDP's procedure shows how it works in practice. Payment is authorised after arrival is confirmed, and for reassigned staff the lump sum may be authorised up to three months ahead on request, based on the exchange and post adjustment rates on the payment date with no later adjustment for changes.
Those are UN rules, not a universal formula. A private employer may use a flat amount, a percentage of salary or a receipt-based policy, so ask for the policy in writing, and ask how tax, repayment on early departure and spouse or child coverage are handled.
In practice
Real-world examples.
Example
A fictional employee moves abroad for a two-year assignment. Her employer pays a 30-day subsistence amount and a lump sum. She uses the cash for temporary housing and basic items, and keeps the policy letter for her tax records.
Example
A fictional contractor accepts a temporary role in another city. His policy gives only a daily allowance and no lump sum. He plans a smaller budget instead of assuming the permanent-staff terms apply, and he asks in writing how many days the daily allowance covers.
Example
A fictional employee moves back to a place where she worked eight months ago. The policy pays a share based on completed months away. She asks HR how the proportion is calculated before booking costs, so that she does not budget for the full amount and then face a shortfall.
Formula
Calculation
Illustrative UN-style grant = subsistence portion + lump-sum portion. A fictional staff member has a daily rate of $180 and two eligible family members. The subsistence portion is 30 x $180 + 2 x (30 x $90) = $5,400 + $5,400 = $10,800.
If net base salary plus any post adjustment is $9,000, the lump sum is $9,000. The total is $10,800 + $9,000 = $19,800 in this simplified fictional case. Real calculations use the rates and conditions in force.
For comparison, a fictional staff member on a temporary appointment with the same $180 daily rate receives only the subsistence portion for themselves, which is 30 x $180 = $5,400, with no lump sum and no family amounts.Case study
Seen in the real world.
This case study is fictional and illustrative. A project manager accepts a one-year posting in a new country with her partner and child. The employer's policy resembles the UN structure, with a daily portion and a lump sum. Her HR contact confirms the daily rate and which family members qualify.
She calculates 30 days at the full rate for herself and 30 days at half rate for each family member. She adds the lump sum from the policy. Her budget lists deposits, temporary lodging and early purchases. She keeps a separate note that the allowance is not a salary raise and that she must ask about tax.
When the posting begins, she checks the payment date against the policy. The case shows how a plan helps cash flow. It does not replace asking about reimbursement of moving costs, taxes or repayment if she leaves early.
Watch out
Common mistakes.
- Assuming every employer uses the UN grant formula.
- Treating the allowance as the same thing as moving-cost reimbursement.
- Skipping questions about tax, family coverage and repayment on early departure.
Questions
People also ask.
Is a settling-in allowance guaranteed?
No. It depends on the employer's written policy and the worker's status.
Do family members count?
In the UN rule, eligible family members add a half-rate daily portion if travel is paid by the organisation.
Does the rate change after payment?
UNDP says its lump sum is not adjusted for later exchange or post adjustment changes.
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