Local Employment Policy Handbook - ICASS

COMPENSATION
See 3 FAM 7300
Compensation is based upon residency and the legal eligibility to work in country, not an individual’s
nationality.
Official Definitions
For the official definitions of Ordinarily Resident and Not Ordinarily Resident, see 3 FAM 7120.
Residency and Compensation
HR has two residency options for determining compensation and benefits for an employee:
1. Ordinarily Resident (OR): An individual who is either a citizen of the host country, or a citizen of
another country (including the US) who has legal permanent resident status in the host country, and/or is
subject to host country employment and tax law. Most Members of Household are Ordinarily Resident.
ORs are always compensated under the Local Compensation Plan.
Non-US Citizen Eligible Family Members with host country citizenship are Ordinarily Resident for
purposes of employment when working in their country of citizenship.
*Ordinarily Resident >>>>>>>>>>>>>>>>>>>>> Local Compensation Plan
2. Not Ordinarily Resident (NOR): An individual who is a non-host country citizen who may legally work
at a US diplomatic or consular post, but who is not subject to host country labor and tax law. The vast
majority of NORs are Appointment Eligible Family Members (AEFMs) and EFMs (who are not posted to
their country of citizenship) of direct hire Foreign, Civil, or uniformed service members officially
assigned to the Mission and under Chief of Mission authority or at an office of the AIT. NORs are always
compensated from an American pay plan (FP or GS). All NORs must have a US Social Security Number.
*Not Ordinarily Resident >>>>>>>>>>>>>>>>American Pay Plan (FP or GS)
Dual Nationals
If the individual is a dual national and one of the citizenships is US, the US Government always
recognizes the US citizenship first.