PLD Explanation:
Canadian Military's Post Living Differential (PLD) is an allowance designed to stabilize the cost of living of Canadian Military members and their families. The mandate is that Posted Military be able to enjoy a relative and predictable cost of living at their destination Base, no matter where they serve, throughout Canada.
Background
Efforts to obtain a cost of living benefit for Military go back to at least the mid 1980s when the CAF surveyed selected Military locations and determined variations in cost of living (per Base) and the effects it had on Military & families Postings. In late 1990s the Parliamentary Standing Committee on National Defence and Veterans Affairs (SCONDVA) recommended and approved the implementation of PLD, making the allowance the first of it’s kind within the Federal Government of Canada.
How does PLD work?
The PLD works to stabilize the cost of living for CAF Members. PLD is paid monthly on top of salaries of CAF Members. PLD varies per locations within Canada dependent on the location cost of living. Link to latest PLD per Base chart link is below.
How is PLD Calculated?
Each year, during March timeframe, each Base PLD rate is based on the following:
· CMHC's data on typical housing types and costs.
· National Defence data on Military population and local impact on economy.
Once annual data is compiled, changes to PLD are calculated by May. By June/July the new figures are entered into the CAF pay system and the changes are announced to Military & families. By August, CAF Members will see the changes on their monthly pay statements.
Is PLD a taxable benefit ?
Yes, PLD is taxed. As a result, an increment is added when calculating the rates to offset the income tax paid on the allowance. This means the allowance involves marginal tax allowance for loss through taxation.
What is the current PLD at my Military Base?
For latest PLD amounts, click on Base Post Living Differential chart: PLD here.