Patrick Costello (Dublin South Central, Green Party)
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100. To ask the Minister for Foreign Affairs and Trade the details of the system of tax-free allowances paid to civil servants assigned to Irish missions abroad; the way in which they are calculated; the annual cost of same; and if he will make a statement on the matter. [38313/24]

Micheál Martin (Cork South Central, Fianna Fail)
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All civil servants posted to our missions abroad are paid the standard salary for their grade as determined by the Department of Public Expenditure, NDP Delivery and Reform and are subject to the normal taxation and social security obligations that apply to civil servants.

In common with other diplomatic services, this Department further supports officers who are assigned abroad to serve the State in an official capacity through a system of Foreign Service Allowances (FSA). This is to assist in contributing to defraying the additional costs officers and their families incur in moving and living abroad. These allowances are based on independently sourced data and are reviewed annually. The various components of the system can increase, decrease or be removed altogether during an officer’s posting.

The components of the allowance system are:

Cost of Living Allowance (COLA), which is designed to estimate and defray costs associated with a higher cost of living at the post abroad. The Department uses the services of an independent firm to provide cost of living indices for the locations where we have missions. COLA only becomes payable at mission locations with a higher cost of living index than Dublin.

Local Post Allowance (LPA), which assists mainly with the additional indirect costs arising from the representational role of officers. This allowance is payable at all locations abroad. LPA is updated in line with inflation annually, and when a cost of living index applies to the location. Officers serving in designated “hardship” posts may also be currently entitled to a hardship allowance as part of their LPA.

Children’s Foreign Allowance (CFA), which contributes towards the additional costs incurred with regard to qualifying children at post overseas.

The Finance Act 2005 provides for FSA to be disregarded as income for the purposes of the Income Tax Acts.

The total expenditure on FSA to end August 2024 was €12,173,000.