No, the world is not getting less dangerous but according to our sources, the State Department is eyeing changes in danger pay that could result in the loss of danger pay for a number of posts worldwide.
A group inside the State Department called the Danger Pay Working Group reportedly noted that the current practice of awarding Danger Pay has “veered from the original legislative language” which narrowly awards the additional compensation for a few extreme circumstances such as active civil unrest and war. Under the proposed changes, the definition of Danger Pay would reportedly revert to — you guess it, “the original legislative language” which would result in a probable loss of Danger Pay for a number of posts worldwide.
The State Department is also revising its Hardship Differential Pay. The idea appears to involve moving some of the factors which previously resulted in Danger Pay into the Hardship calculation. The number crunchers estimate that this may not result in equivalent levels of pay but apparently, the hope is “to compensate employees to some degree for these factors.”
Let’s back up a bit here — the Danger Pay allowance is the additional compensation of up to 35 percent over basic compensation granted to employees (Section 031 and 040i) for service at designated danger pay posts, pursuant to Section 5928, Title 5, United States Code (Section 2311, Foreign Service Act of 1980).
Here is the full language of 5 U.S. Code § 5928 (via Cornell Law)
An employee serving in a foreign area may be granted a danger pay allowance on the basis of civil insurrection, civil war, terrorism, or wartime conditions which threaten physical harm or imminent danger to the health or well-being of the employee. A danger pay allowance may not exceed 35 percent of the basic pay of the employee, except that if an employee is granted an additional differential under section 5925 (b) of this title with respect to an assignment, the sum of that additional differential and any danger pay allowance granted to the employee with respect to that assignment may not exceed 35 percent of the basic pay of the employee. The presence of nonessential personnel or dependents shall not preclude payment of an allowance under this section. In each instance where an allowance under this section is initiated or terminated, the Secretary of State shall inform the Speaker of the House of Representatives and the Committee on Foreign Relations of the Senate of the action taken and the circumstances justifying it. [Section effective Feb. 15, 1981, except as otherwise provided, see section 2403 of Pub. L. 96–465, set out as a note under section 3901 of Title 22, Foreign Relations and Intercourse].
In 1983—Pub. L. 98–164 inserted provision that presence of nonessential personnel or dependents shall not preclude payment of an allowance under this section, and that each instance where an allowance under this section is initiated or terminated, the Secretary of State shall inform the Speaker of the House of Representatives and the Committee on Foreign Relations of the Senate of action taken and circumstances justifying it.
In 1984 — Pub. L. 98–533, title III, § 304,Oct. 19, 1984, 98 Stat. 2711, provided that: “In recognition of the current epidemic of worldwide terrorist activity and the courage and sacrifice of employees of United States agencies overseas, civilian as well as military, it is the sense of Congress that the provisions of section 5928 of title 5, United States Code, relating to the payment of danger pay allowance, should be more extensively utilized at United States missions abroad.”
We note that specific provision added in 1983 but it appears that in 2005, the State Department amended the Foreign Affairs Manual (3 FAM 3275-pdf) to say this:
Danger pay may be authorized at posts where civil insurrection, civil war, terrorism, or wartime conditions threaten physical harm or imminent danger to the health or well being of employees. It will normally be granted at posts where the evacuation of family members and/or nonessential personnel has been authorized or ordered, or at posts at which family members are not permitted.
The Global Terrorism Database indicates that there were 3,421 terrorist incidents in 1984, the year when Congress recognized that danger pay allowance should be more extensively utilized at U.S. missions overseas. The same database indicates that there were 11,952 terrorist incidents in 2013. Hard to argue that the world has become less dangerous in the intervening years.
Below is a list of posts with danger pay based on the latest data from the State Department or see snapshot here:
Post Hardship Differential, Danger Pay, and Difficult-to-Staff Incentive Differential (also known as Service-Needs Differential) are all considered recruitment and retention incentives. These allowances are designed to recruit employees to posts where living conditions may be difficult or dangerous.