The US Department of State recently updated the Department of State Standardized Regulations (DSSR) with the issuance of the Transmittal Letter: Standardized Regulations (TL: SR) – 946 which took effect July 8, 2018.
Stuttgart had a 5 percent reduction in its post allowance. The Dept. of State has a FAQ page to explain how post allowance is determined worldwide.
For example:
4. Q: How do you determine the post allowance?
A: An index is developed by comparing the cost of goods and services and living pattern information reported by the foreign posts to the cost of goods and services and living patterns in Washington , D.C.
Visit the Dept. of State website’s Office of Allowances page to learn more. The Office of Allowances in the Bureau of Administration develops and coordinates policies, regulations, standards, and procedures to administer the government-wide allowances and benefits program abroad under the DSSR.
The office compiles statistics of living costs abroad, quarters allowances, hardship differentials, and danger pay allowances and computes the established allowances to compensate U.S. Government civilian employees for costs and hardships related to assignments abroad. The office is also responsible for establishing maximum per diem rates for foreign areas.