Post (Hardship) Differential is additional compensation of 5, 10, 15, 20, 25, 30 or 35 percent over basic compensation for service at places in foreign areas where conditions of environment differ substantially from conditions of environment in the United States. For FDRMC, Bahrain is the only location that receives this benefit.

How is Post (Hardship) Differential calculated?
A numeric score is developed by evaluating the information included in post’s Form DS-267 against the post hardship differential standards. Form DS-267 provides detailed information on all facets of environmental conditions at post.

It is important to note that because it is a percentage of basic compensation (DSSR 040k), it is included in gross income for Federal income tax purposes (DSSR 054.2).

Office of Allowances – Bahrain
Post (Hardship) Differential – FAQ