A calculation error has led the federal government to overpay foreign allowances to approximately one-third of its employees stationed abroad. According to reports by “Der Spiegel,” the resulting financial damage amounts to around five million euros.
The Federal Foreign Office explained that when federal employees are posted overseas, their compensation includes “foreign service pay in addition to the regular domestic salary,” which aims to reflect the special conditions and demands of the assignment abroad. The calculation for the applicable zone level, which determines the allowance amount, was handled by a private company that collects global data and developed a calculation method in coordination with the Foreign Office.
This method assesses not only intangible factors, such as security and supply situations, but also price differences for goods and services between Berlin and the duty station overseas. A cost index is calculated for this purpose: a positive figure results if the purchasing power at the duty station is lower and costs are consequently higher; conversely, if living is cheaper at the overseas station than in the federal capital, the factor is negative.
However, information from “Der Spiegel” indicates that the company entered all figures with a positive sign, causing the zone levels for some stations to be classified too highly. Seventy-one out of 220 foreign duty stations are affected. This list includes locations in Lithuania, where Bundeswehr soldiers are deployed as part of the developing Lithuanian Brigade.
The Foreign Office is currently investigating ways to hold the company responsible for the incurred damage. However, due to legal restrictions, the federal government cannot recover the excess allowances from the civil servants themselves. This error has been corrected in the current determination of zone levels.
