5 U.S.C. § 5941: Allowances based on living costs and conditions of environment; employees stationed outside continental United States or in Alaska

living costs substantially higher than in the District of Columbia; conditions of environment which differ substantially from conditions of environment in the continental United States and warrant an allowance as a recruitment incentive; or both of these factors. This section shall apply only to areas that are designated as cost-of-living allowance areas as in effect on December 31, 2009 . January 1, 2010 ; and January 1 of each calendar year in which a locality-based comparability adjustment takes effect under paragraphs (2) and (3), respectively, of section 1914 of the Non-Foreign Area Retirement Equity Assurance Act of 2009. In this paragraph, the term “applicable locality-based comparability pay percentage” means, with respect to calendar year 2010 and each calendar year thereafter, the applicable percentage under paragraph (1), (2), or (3) of section 1914 of Non-Foreign Area Retirement Equity Assurance Act of 2009. subtracting 65 percent of the applicable locality-based comparability pay percentage from the cost-of-living allowance percentage rate in effect on December 31, 2009 ; and one; and the applicable locality-based comparability payment percentage expressed as a numeral. No allowance rate computed under paragraph (2) may be less than zero. Each allowance rate computed under paragraph (2) shall be paid as a percentage of basic pay (including any applicable locality-based comparability payment under section 5304 or similar provision of law and any applicable special rate of pay under section 5305 or similar provision of law). An employee entitled to a cost-of-living allowance under section 5924 of this title may not be paid an allowance under subsection (a) of this section based on living costs substantially higher than in the District of Columbia. an examination of the pay practices of other employers in the affected areas; a consideration of alternative approaches to dealing with the unusual and unique circumstances of the affected areas, including modifications to the current methodology for calculating allowances to take into account all cost of living in the geographic areas of the affected employee; and an evaluation of the likely impact of the different approaches on the Government’s ability to recruit and retain a well-qualified workforce.