The aim of the Operational Allowance is to recognise the significantly increased and enduring nature of the danger in specified operational locations (SOL), over and above that compensated for within the X Factor.
The Operational Allowance is paid for each day that eligible Service personnel are in a SOL where the Allowance has been declared as payable. The geographical boundary includes personnel serving on RN ships in specified waters and those flying sorties over or into a designated operational area, provided that they directly support the operation. The dates on which an Operational Allowance begins and ceases to be payable, in a SOL, will be announced by SP Pol Allowances.
On 10 October, the Secretary of State for Defence announced that a new, tax-free "Operational Allowance" would be introduced to recognise the increased and enduring nature of danger in specified operational locations, over and above that compensated for in the X-Factor element of a Service person’s salary. Those locations have been agreed based on the security situation in each location.
The Allowance will be back-dated to 1 April 2006 and paid for each day that Service personnel serve in Iraq, Afghanistan, the Balkans and some other discrete locations.
The Allowance will also be paid to personnel serving in RN ships in Iraqi territorial waters (CTF 158).
It will also be paid to aircrew located outside Iraq, Afghanistan and the Balkans but fly sorties over or into these countries. Further eligibility details for aircrew at the Forward Operating Bases and routing from the UK into Iraq, Afghanistan and the Balkans will be issued shortly.
The locations qualifying for the Operational Allowance will be reviewed periodically. Locations will be removed from or added to the eligibility list as circumstances change.
The Allowance will be paid at the daily rate of £12.31 and to all Regulars, Mobilised Reserves and those on Full-Time Reserve Service. For a 6-month deployment this will amount to £2,240.
Payment of the Allowance will be as a tax-free lump sum, paid into a Service person’s salary, at the end of their deployment to a specified operational location.
Regulations for the Operational Allowance have been passed to the Services for distribution to units.
The new regulations will be contained in 'JSP 752: Tri-Service Regulations for Allowances'; an advance copy is reproduced below.
Downloadable File: Operational Allowance - Interim Regulations (PDF)
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