Review of the Accommodation Benefit for Internationally-relocated Staff on Global and/or National Plus Contracts

East Asia Region Country Nepal

Prepared by:

Anjani Amatya, HR Manager

Endorsed by:

Cecilia Keizer

Date:

January 2017

Next Review Date:

Oct 2018

Introduction:
For example, The actual benefit level paid should be defined by the market rate for accommodation in each country as outlined in the policy. The last
accommodation benefit review was completed in 2014.
Policy/ Procedure - Calculating accommodation benefit
The amount paid dependant on the maximum set by Regional Human Resources for each country/city based on local market rates. To ensure we do not
pay more than the appropriate market rate, this should be based on an average of a minimum of three quotes and should not normally exceed the global
maximum of 7,000 per annum1.
The following common standards should apply across all regions:

Maximum amounts will be set for a modest standard of accommodation in reasonable areas (e.g. a safe district, within reasonable travelling
distance of the place of work).
The maximum amounts may vary depending on family size as follows:

Benefits above the global limit - If, in exceptional circumstances, local market rates for accommodation and security costs exceed the global maximum of 7,000
per annum, Regional Human Resources can submit a business case to the Reward Team for approval by International Human Resources Director

Single person/ or couple: 1 or 2-bedroom accommodation2

Family: up to a maximum of three bedrooms3

Where security costs are essential for safety reasons, Regional HR may set separate maximum amounts for security costs for given locations.

The amount will be paid either directly to the landlord by Oxfam GB or against invoices.

In addition, other consideration to look at are:

Where Oxfam has established a Guest House, staff on short-term, Unaccompanied status may be asked to share accommodation.
Security costs set as a separate amount where this is essential for the health, safety and well being of staff and their families. (the total cost of
accommodation and security should be within the country maximum)

Utility costs not included for contracts over 12 months.

Staff costs not included (e.g. cook, gardener).

The cost of non-essential facilities is not included.

It is recommended that Oxfam conducts an annual review of housing costs, based on the market conditions in the location.

For none Internationally-relocated staff, i.e., a National staff, who is on secondment, it is recommended that you provide 50% of the set
accommodation allowance for Globally relocated staff.

Comparative Analysis - Accommodation market survey:

2

Although Oxfams policy indicates that Singles and Couple would be treated different, it was decided in East Asia that these two categories of family status would be treated
the same, when setting the sliding-scale for the accommodation benefits within East Asia.
3

Again, our interpretation of East Asia that we set the maximum limit for accommodation benefit for each category, i.e., singles/ couples, and family, then staff would rent whatever
suitable accommodation to meet their family size and needs, within the pre-determined limits. However, if staff chooses to rent an accommodation, which beyond the set limit,
staff is expected to pay for the difference.

A. City Area A:
1-Bedroom Unit
Location 1: Lalitpur Rental Cost per
month
(Jhamshikhel, Sanepa,
In apartment
Kupondole, Manbhavan,
(Flat System) :
Jawalakhel)
USD 600-800

In individual
unit (House):
NA

A. City Area B:
1-Bedroom Unit
Rental Cost per
Location 2:
month
Kathmandu (Lazimpat,
In apartment
Balwatar, Maharajgunj,
(Flat System) :
Bansbari,)
USD 650-800

In individual
unit (House):
NA

2 Bedrooms Unit
Rental Cost
Per month
In apartment (flat system):
USD 1000-1200

3-Bedrooms and plus

Rental Cost per month

Comments

In apartment (flat system):

USD 1500-1700

In Individual unit (House):

Two bedrooms individuals
units are not generally
available and have very
limited options. In case of
availability it cost :
USD; 1500-1800

In Individual unit (House):

In case of availability it cost :
USD; 1800-2200

Excluding tax and other

utilities cost (water, internet,
electricity and common
expenses)

2 Bedrooms Unit
Rental Cost
Per month
In apartment (flat system):
USD 1500-1800

3-Bedroom Unit
Rental Cost per month

Comments

In apartment (flat system):

USD 1800-2000

In Individual unit (House):

Two bedrooms individuals
units are not generally
available and have very
limited options. In case of
availability it cost :
USD; 1800-2200

In Individual unit (House):

In case of availability it cost :
USD; 2200-2500

Excluding tax and other

utilities cost (water, internet,
electricity and common
expenses)

In Individual unit (House):

Mostly available individuals
houses are generally have more
than 3 bedrooms:
USD 2200- 3000

In Individual unit (House):

Mostly available individuals
houses are generally have more

than 3 bedrooms:
USD 2500- 3000

Accommodation Benefits Survey of Other INGO Operating in the Same Location:

Name of INGO

Accommodation benefits
For Country Director: Currently paying USD 1500 but they have
provision to pay Max USD 2000

Save the Children

Mercy Corps
Plan Nepal

Care Nepal

World Vision
Tear Fund

For short term International Expatriate: As mentioned in the

contract agreement. No specific rate.
around USD 1200 (maximum) including tax and excluding other
utilities cost- electricity, water, internet
around USD 1100 (maximum) including tax and excluding
other utilities cost- electricity, water, internet
For Country Director USD 1800 -2000 (maximum).
For international staff it depends upon service length,
experience, position which is clearly mentioned in the
agreement and based on that they have to manage.
around USD 1250 including tax and excluding other utilities
cost- electricity, water, internet. and office pays maximum USD
150 for the utilities cost. They have two provisions- housing
allowance and other is organization itself involves in leasing
house. Staff can choose one of the option.
For Country Director: GBP 1000. If they need to pay higher get
approval from line manager.

Maximum average of the accommodation benefit provided by INGOs in the location is: Minimum USD 880 per month and Maximum USD 1700 per
month
Any other observations from the INGO survey:
The data is not fully and openly shared by other INGOs as there is ongoing issue of international staff numbers in each INGO, thus it was
difficult getting their data.
The minimum that INGOs pay for rent is USD 880 per month
Any other factors to be considered in this proposal:
(For example, availability and cost of furnished accommodation, staffs family size, security concerns, cost of living in the location, etc.)

The minimum rental cost is USD 600 per month but it is extremely difficult to find such accommodation in reasonable areas such as near
reasonable travelling distance from Oxfam office. Accommodations that are mostly available are built with two bedrooms and at corresponding
rate of minimum USD 800.
Thus the rates are collected for one bedroom also but it is very difficult to get those accommodation options. So the proposal is based on what
is available in the market at a reasonable location.
The property trend increment every year is 5% per annum. It is also clearly mentioned in the current contracts that Oxfam has with property
owners. Thus, this has also been included in the proposal.

Final Proposal/ Recommendations:

Existing accommodation allowance:
Existing rate from 2014
# of
Bed

Family size

Monthly in NPR

Annum in NPR

Single (2 bd rooms)
Couple (Single person with or without 1 child/couples without
children)

60,000.00

720,000.00

70,000.00

840,000.00

Family (Couple with child (ren))

120,000.00

1,440,000.00

Newly proposed accommodation allowance:

City, Country
Unaccompanied/ Singe

Accompanied - Couple

Either shared accommodation at Oxfams

Guest House, or same as accompanied
singles/ couples
NPR 88,000/- per month
NPR 132,000/- per month

Accompanied - Family

NPR 198,000/- per month

Projected Implementation date: 1st December, 2016

Reviewed by: Sirisom Sungboonleu

Approved by: Kevin Moyes

Appendix:
Additional policy notes RE the accommodation benefits:
Furniture and Furnishings:
1. Contracts or Deployments up to and including One Year (Relocated Staff only)
2. Contracts or Deployments over One Year (Relocated Staff only)

Money from the removal expenses allowance detailed in the contract may be used to assist with the purchase of furniture (see Basic
Furniture and Furnishings and Removal and Relocation Expenses), subject to management discretion, but those items paid for by
Oxfam GB will remain Oxfam GB property. This is a one-off purchase and Oxfam GB is not liable for replacing household items that
are lost, stolen, damaged, worn out or in need of repair or replacement

Living Expenses Contracts or Deployments up to and including One Year (Relocated unaccompanied Posts only) For costs such
as basic food, non-alcoholic drinks, laundry and transport either a per diem will be paid within the parameters set by the Regional
Director or actual expenses will be reimbursed for up to one year on any one contract or deployment in any one country base.

Guidelines on Oxfams Standards for Basic Furniture and Furnishings:

List of maximum approved household equipment for three bedroom accommodation provided by Oxfam GB for relocated staff in Global posts or on
National Plus deployments on fixed term contracts of more than 6 months and up to and including one year. For accommodation of less than three
bedrooms, the list will be reduced accordingly.
Staff on accompanied open-ended contracts, or fixed term contracts or deployments of over one year, may use some of their removal benefit to assist
with the purchase of basic and essential furniture and furnishings, such as the ones listed below. Please note that the removal benefit is not designed to
cover the cost of providing all of these items.
Bedroom 1

Bedroom 2
One single bed plus mattress
One double or two single beds plus
One chest of drawers

mattress
One chest of drawers
One wardrobe
Two blankets
Two pillows

One under-blanket
Bedroom 3
One single bed plus mattress
One chest of drawers
One wardrobe
Two blankets
Two pillows

One wardrobe
Two blankets
Two pillows

One under-blanket

Kitchen
One cooker
One refrigerator
Two kitchen cabinets
One electric iron
Basic equipment and utensils to cater for up to four people: ironing board, bucket, tray, mixing
bowls, pots, pans, baking tins, cutlery, crockery
Dining Room
One dining table plus four chairs

One under-blanket
Lounge/Living Room
One 3-piece-suite or equivalent
General (in all rooms)
Curtains and curtain rails
Light fixtures and lampshades
Floor covering as appropriate

Heaters or airc onditioners as

appropriate

Those items paid for by Oxfam GB remain Oxfam GB property. Oxfam GB is not responsible for replacing household items that are lost, stolen,
damaged, worn out or in need of repair or replacement.
See Removal and Relocation Expenses Policy for further details.