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The post adjustment index (PAI) is a statistical measurement of the cost of living for staff working at a given duty station, relative to that of New York City, the base city of the system.
It is established by means of periodic comparisons of cost-of-living data between the base city and other duty stations. The data is collected through cost-of-living surveys called “place-to-place surveys” which in most cases are conducted every three years. In between these place-to-place surveys, the PAI is updated through periodic adjustments which take into account movements in local prices, as well as changes in local exchange rates relative to the US Dollar.
In years when a place-to-place survey is not scheduled, a housing survey is conducted so as to update the housing component of the cost-of-living comparison, as well as the rental subsidy thresholds.