An allowance is a compensation action adding extra pay to your base salary for special assignments, skills, qualifications, and credentials for enhanced duties. Allowances are removed when your special assignment ends, or skill, qualifications, and credentials for enhanced duties are no longer required.
There are three types of allowances:
- Fixed Amount Allowances
- Variable Amount Allowances
- Percentage Based Allowances
Fixed amount allowances do not vary based on other compensation factors, for example Acute Care Differential – Amount Allowance, assigned a flat $25 per month.
Variable amount allowances vary based on other compensation factors, for example Work Out of Class (WOC) – Amount. Amount assigned is the difference between the employee’s base pay and higher classification’s salary range.
Percentage-based allowances are based on a specified percentage of the assigned base pay, for example bilingual differentials, five percent of assigned base pay.
Last Updated: 9/14/2026