LQA rates are established based on 'quarters groups'. The LQA rates are designed to substantially cover the average employee's costs for rent, utilities, required taxes levied by the local government, and other allowable expenses. Living quarters allowance rates are categorized by "quarters groups" based on the employee's grade level and his/her family size. A maximum LQA rate is established by the Department of State. The LQA was put in place to keep the civilian workers out of the oversea. A maximum LQA is established for each post abroad based on the employee's grade, quarter's group and family size.
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