Local Employment Policy Handbook - ICASS

RESIDENCY STATUS AND DETERMINING COMPENSATION USING
THE LOCAL EMPLOYMENT COMPENSATION WORKSHEET
Compensation -- pay and benefits provided to individuals employed under PSA authority – is determined
by the individual’s residency status. HR must complete the most recent version of the Local Employment
Compensation Worksheet as part of the employee hiring process.
The Local Employment Compensation Worksheet is available on the HR/OE website.
The Human Resources Officer (HRO) or Management Officer (absent the HRO), in consultation with
HR/OE, if needed, determines the residency status of an individual selected for employment at the
Mission by completing the Local Employment Compensation Worksheet. HR must complete a
Compensation Worksheet for every individual recruited locally (including Appointment Eligible Family
Members, other EFMs, and Members of Household). HR must carefully decide and document the
residency status. Once the individual officially enters on duty, HR may not change the residency status.
There is no exception to this policy.
Dual Nationals: If an individual has dual citizenship and one of the citizenships is US, the US
Government always recognizes the US citizenship first.
Following is an overview of residency-based compensation.
A. Ordinarily Resident (OR) – The applicant is in the host country as a citizen, legal permanent resident,
or holder of a non-Diplomatic work visa, or work permit, or residency permit, or both a work visa/permit
and a residency permit. This person comes under local labor law. This category will include most
Members of Household and all non-US Citizen Eligible Family Members who are in their country of
citizenship.
Ordinarily Residents are always paid under the Mission’s Local Compensation Plan.
B. Not Ordinarily Resident (NOR) – The applicant is a Appointment Eligible Family Member (AEFM) or
EFM on the travel orders of a direct hire Foreign Service, Civil Service, or uniformed service member
permanently assigned to the Mission and under Chief of Mission authority, or at an Office of the
American Institute of Taiwan. This person has a diplomatic visa, does not come under local labor law,
and thus does not need a work permit. Non-US Citizen EFMs must have a US Social Security Number
and may not be in their country of citizenship to qualify as NOR. This category may also include
Members of Household with US Social Security Numbers who are not on the travel orders, but who do
not need a work permit or visa work stamp to legally work in country.
Not Ordinarily Residents (NOR) are always paid under an American compensation plan. All NORs
must have a US Social Security Number for compensation under an American pay plan. If the individual
is unable to get a US Social Security number, HR may not hire as a NOR.