PREMIUM COMPENSATION
(CT:PER-1222; 03-27-2025)
(Office of Origin: GTM/OE)
3 FAM 7551 OVERTIME pay
(CT:PER-1002; 06-29-2020)
(State and All Agencies under COM Authority)
(Applies to Locally Employed Staff Only)
a. Premium pay rates for locally employed (LE) staff are based on local law, documented locally prevailing practice, and worldwide management policies established by the Department of State and described in this section.
b. Each mission’s local compensation plan (LCP) must include a Department authorized premium pay plan that describes mission-specific premium pay rates for work performed outside of the regular workweek schedule. The plan should include rates for overtime and holiday pay as well as night differential, day differential, shift differential, on-call status rate, and/or standby duty rate as appropriate. The mission’s initial premium pay plan and all subsequent revisions must be authorized by the Department of State, GTM/OE/CM, prior to implementation. Guidance on requesting authorization to revise the mission’s premium pay plan can be found on GTM/OE intranet website.
c. Premium pay is calculated using the employee’s hourly basic salary. Basic salary is exclusive of allowances, bonuses, and all other separately identified benefits unless otherwise specified by local law.
d. A guaranteed minimum number of hours worked for premium pay purposes will only be authorized in the case of a relevant local law provision and if determined to be consistent with the U.S. Government's interest.
3 FAM 7552 subchapter DEFINITIONS
(CT:PER-843; 05-11-2017)
(State and All Agencies under COM Authority)
(Applies to Locally Employed Staff Only)
Compensatory time earned: Pay status when time off is earned in lieu of overtime pay for overtime work.
Department: U.S. Department of State.
Holiday work: Work performed by an employee during basic workweek hours on a designated holiday.
Home country: The country where the employee’s usual duty station is located.
Irregularly scheduled workweek: A tour of duty where the scheduled workweek hours are subject to change, such as from pay period to pay period.
Local holiday: A local holiday observed by the mission in accordance with 2 FAM 115.2. Recurring local holidays must be listed in the mission’s LCP.
Part-time: A workweek schedule in which the employee is regularly scheduled to work fewer hours than the full workweek used at the mission. For most posts, this means a schedule of fewer than 40 hours per week or fewer than 80 hours per biweekly pay period.
Regular pay: The hourly rate of pay normally received each pay period for each regular work hour during the employee’s regularly scheduled workweek. Regular pay does not include overtime pay, holiday pay, differentials, or any other premium pay. Regular pay is provided for basic workweek hours on a paid holiday whether or not the employee is required to work.
Regularly scheduled workweek: The employee’s basic tour of duty as reflected in a personnel action. A change to the basic tour of duty requires a new personnel action.
Total pay: The hourly rate of pay received each pay period for each regular work hour and is the sum of basic salary and all allowances usually paid each pay period.
U.S. holiday: One of the 10 U.S. Federal holidays: New Year’s Day, Birthday of Martin Luther King, Jr., Washington’s Birthday, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day, and Christmas Day. It also means any additional day or partial day off that is so declared a U.S. Federal holiday by a Presidential Executive Order, such as National Day of Mourning following the death of a former U.S. President.
Workweek: The basic workweek for a full-time LE staff will generally consist of not less than 40 hours of work, exclusive of lunch periods, within the calendar week, Sunday through Saturday. This may vary based on local law. See 3 FAM 7410 for additional information on establishment of workweek schedules.
3 FAM 7553 RESPONSIBILITIES
(CT:PER-1222; 03-27-2025)
(State and All Agencies under COM Authority)
(Applies to Locally Employed Staff Only)
a. Representatives of all agencies at post employing LE staff are responsible for reaching interagency agreement to implement authorized changes to the mission’s premium pay plan.
b. The management officer, delegating authority as appropriate, is responsible for:
(1) Ensuring the premium pay plan is up-to-date and reflects authorized benefit levels;
(2) Monitoring the government of the receiving state’s labor law and notifying GTM/OE/CM in a timely manner when changes to the law may lead to a change to the premium pay plan;
(3) Answering questions from the mission’s managers, supervisors, and employees concerning the premium pay plan;
(4) Requesting guidance from GTM/OE/CM when additional or clarifying guidance is needed; and
(5) Coordinating the implementation of authorized revised premium pay plans with representatives of other agencies at post.
c. Supervisors are responsible for:
(1) Approving all overtime work, holiday work, on-call status, and standby status and ensuring funds are available for payment for such work in accordance with the terms of the premium pay plan. Overtime and holiday work is authorized or approved only as an emergency measure to avoid serious backlogging of regular work or to meet some temporary crisis. It should be kept to a minimum except when necessary to protect life, health, or U.S. Government property;
(2) Ensuring that work which incurs premium compensation is essential to the needs of the mission before approving such work; and
(3) Ensuring the accuracy of time and attendance reports before approving such reports.
d. The employee is responsible for accurately reporting compensable hours of duty worked, including those that entitle the employee to premium compensation.
3 FAM 7554 The Bureau of GLOBAL TALENT MANAGEMENT (GTM) and the bureau of the Comptroller and Global Financial Services (CGFS)
3 FAM 7554.1 The Bureau of Global Talent Management (GTM)
(CT:PER-1002; 06-29-2020)
(State and All Agencies under COM Authority)
(Applies to Locally Employed Staff Only)
The Compensation Management Division, Office of Overseas Employment, Bureau of Global Talent Management (GTM/OE/CM):
(1) Establishes the maximum possible changes to the premium pay plan based on locally prevailing practice and local labor laws;
(2) Authorizes revisions subject to approval by the appropriate State regional bureau’s executive office and Washington headquarters of the foreign affairs agencies present at the mission and signatory to the LCP; and
(3) Sets overall global LE staff premium compensation policy and provides interpretive guidance as needed, coordinating as appropriate with the State regional bureau executive directors, Washington headquarters of the foreign affairs agencies present at the mission and signatory to the LCP, and the Bureau of the Comptroller and Global Financial Services.
3 FAM 7554.2 The Bureau of the Comptroller and Global Financial Services (CGFS)
(CT:PER-1002; 06-29-2020)
(State and All Agencies under COM Authority)
(Applies to Locally Employed Staff Only)
The CGFS:
(1) Receives the signed LCPs containing revised premium pay plans from posts and implements them;
(2) Answers inquiries related to payroll processing of premium pay; and
(3) Consults with GTM/OE/CM on any premium pay issues of common concern.
3 FAM 7555 OVERTIME
3 FAM 7555.1 General
(CT:PER-843; 05-11-2017)
(State and All Agencies under COM Authority)
(Applies to Locally Employed Staff Only)
a. Overtime work is work performed outside of an employee’s regularly or irregularly scheduled workweek. Premium pay rates for overtime work are based on local law and documented locally prevailing practice in the locality of employment. They are usually stated as a percentage of hourly basic salary, e.g., 150% or 200% of hourly basic salary. There may be different overtime rates depending on the day of the week on which the overtime is performed, whether the day is a local holiday, whether the overtime work is performed during the work day or at night, and/or how many hours of overtime work are performed.
b. Overtime work on a holiday, i.e., work performed outside of basic workweek hours on a holiday, is compensated with overtime pay or compensatory time in lieu of overtime pay in accordance with the terms of the mission's premium pay plan. If supported by documented local prevailing practice or relevant local law, a greater premium rate for overtime work on a local holiday may be authorized than for overtime work on a day that is not a local holiday.
c. An employee with a part-time or irregular workweek schedule is eligible for overtime pay for overtime work performed after 40 hours (or the number of hours post uses for a full-time workweek) in pay status within a workweek. Hours in pay status include regular duty, paid holiday, paid leave, excused absence, and compensatory time used. Hours of work beyond the part-time schedule, but before 40 hours per week in pay status, are compensated with 100% of hourly basic salary. For example, an employee with a 32-hour workweek schedule works 44 hours one week. The employee is compensated for 40 hours of regular duty and 4 hours of overtime work.
d. An employee with a full-time alternate workweek schedule in which more than 40 hours are scheduled in one week of the pay period, and less than 40 are scheduled in the other week of the pay period, is eligible for overtime pay (or compensatory time in lieu) for overtime worked after 80 hours in a pay status in the pay period. If local law provides for overtime pay after 40 hours per week, post must not approve such an alternate workweek schedule to the extent it will incur overtime costs every pay period for regularly scheduled work.
e. Commuting time when an employee is called back to the duty station to work overtime is not compensable hours of work. An exception may be authorized if supported by a relevant local law .
3 FAM 7555.2 Compensatory Time in Lieu of Overtime Pay
(CT:PER-843; 05-11-2017)
(State and All Agencies under COM Authority)
(Applies to Locally Employed Staff Only)
a. Compensatory time may be granted for overtime work in lieu of overtime pay if requested by the employee and consistent with relevant local law. Compensatory time in lieu of overtime pay will be earned at the rate of 1 hour of compensatory time for each hour of overtime worked. An exception may be authorized by the Department if supported by relevant local law, such as a provision providing for compensatory time to be earned at the same rate as overtime pay, e.g., 1.5 hours of compensatory time earned for each hour of overtime worked in lieu of overtime pay at 150%.
b. The mission may request authorization to revise the premium pay plan to provide compensatory time only (no overtime pay) for all overtime worked, provided this is consistent with local labor law. Such a restriction may be requested for all grade levels or only for those grades specified (usually upper level grades). The Department will not authorize exceptions based on job series.
c. Compensatory time earned in lieu of overtime pay that is not used within 26 pay periods after the pay period in which it was earned is forfeited. An exception to permit “cashing out” unused compensatory time will only be authorized by the Department if supported by relevant local law.
3 FAM 7556 work on HOLIDAYs
3 FAM 7556.1 U.S. Holidays
(CT:PER-843; 05-11-2017)
(State and All Agencies under COM Authority)
(Applies to Locally Employed Staff Only)
Each hour of holiday work on a U.S. holiday that is not also a local holiday is compensated with a U.S. holiday premium of 100% of basic hourly salary in addition to regular pay.
3 FAM 7556.2 Local Holidays
(CT:PER-1222; 03-27-2025)
(State and All Agencies under COM Authority)
(Applies to Locally Employed Staff Only)
Each hour of holiday work on a local holiday is compensated with the local holiday premium as stated in the mission's premium pay plan, in addition to regular pay. When the local holiday is also a U.S. holiday, the greater of the local holiday or U.S. holiday premium pay rate is paid for each hour of holiday work. An occasional local holiday declared on an ad hoc basis by the government of the receiving state which the mission observes must be documented for premium pay purposes by revising the LCP holiday list or by sending an unclassified telegram to the CGFS payroll office, State regional bureau’s post management officer, and GTM/OE/CM.
3 FAM 7556.3 Compensatory Time
(CT:PER-843; 05-11-2017)
(State and All Agencies under COM Authority)
(Applies to Locally Employed Staff Only)
Missions are not permitted to provide compensatory time in lieu of U.S. or local holiday pay.
3 FAM 7556.4 Overtime Work on a U.S. or Local Holiday
(CT:PER-843; 05-11-2017)
(State and All Agencies under COM Authority)
(Applies to Locally Employed Staff Only)
See 3 FAM 7555.1, paragraph b.
3 FAM 7556.5 Part-Time and Irregular Workweek Schedules
(CT:PER-843; 05-11-2017)
(State and All Agencies under COM Authority)
(Applies to Locally Employed Staff Only)
a. When a holiday occurs during the employee's basic part-time workweek, holiday pay is provided only when the hours of work exceed 40 hours (or the number of hours post uses for a full-time workweek) in that workweek. If the employee is in pay status for 40 or fewer hours during the work week when the holiday occurs, those hours are compensated as regular duty. When a holiday occurs outside of the part-time workweek schedule, the employee is not entitled to a day off in lieu of the holiday.
b. Employees with an irregular workweek schedule should not be scheduled to work on a holiday.
c. The workweek hours must be established in advance by the employee’s supervisor and a copy provided in a timely manner to the employee responsible for time and attendance reports as well as to the CGFS payroll office so that premium pay will be correctly paid.
3 FAM 7557 DIFFERENTIALS
3 FAM 7557.1 Night Differential
(CT:PER-843; 05-11-2017)
(State and All Agencies under COM Authority)
(Applies to Locally Employed Staff Only)
a. When the mission has LE staff who are regularly scheduled to work at night, a night differential rate may be authorized if supported by local prevailing practice or relevant local law. The night differential will be paid for regularly scheduled nighttime work during the specified hours in addition to regular pay, for example, a 10% night differential in addition to regular pay. The mission's premium pay plan must document the specified nighttime hours that are covered by the night differential, for example, 10 p.m. to 6 a.m. The hours will be based on local law or locally prevailing practice.
b. The night differential rate will be based on local law or locally prevailing practice. When relevant local law provides a premium for night work but does not specify the premium amount, and there is insufficient data on locally prevailing practice, the Department will authorize a maximum night differential rate of 10%. The mission may request a lower rate.
c. Work at night outside of an employee's basic workweek hours is overtime work at night and is paid in accordance with the overtime rates stated in the mission's premium pay plan. Night differential will not be paid for overtime work at night outside of the employee's basic workweek, unless relevant local law provides otherwise.
d. A night differential is not paid for hours not actually worked, including leave, holidays, compensatory time used, and excused absence. An exception may be authorized by the Department if relevant local law provides otherwise.
e. An employee with a part-time or irregular workweek schedule is eligible for night differential if the employee's basic workweek schedule includes hours covered by the night differential.
3 FAM 7557.2 Day Differential
(CT:PER-843; 05-11-2017)
(State and All Agencies under COM Authority)
(Applies to Locally Employed Staff Only)
a. When the mission has LE staff who are regularly scheduled to work on a day that is customarily considered a rest day in the country (for example, Sunday when the customary workweek is Monday through Friday), a day differential may be authorized when relevant local law provides for this or when needed by the mission to recruit and retain employees to work on that day.
b. The day differential rate is based on local law or locally prevailing practice. When relevant local law provides for a premium for regularly scheduled work on a specific day of the week but does not specify the premium amount, and there is insufficient data on locally prevailing practice, the Department will authorize a 25% differential. The mission may request a lower rate.
c. Work on the specified day outside of basic workweek hours is overtime work and is compensated accordingly. Day differential will not be paid for overtime work on the specified day outside of the employee's basic workweek, unless relevant local law provides otherwise.
d. A day differential is not paid for hours not actually worked, including leave, holidays, compensatory time used, and excused absence. An exception may be authorized by the Department if relevant local law provides otherwise.
e. An employee with a part-time or irregular workweek schedule is eligible for the day differential if the employee's basic workweek schedule includes hours on the specified day.
3 FAM 7557.3 Shift Differential
(CT:PER-843; 05-11-2017)
(State and All Agencies under COM Authority)
(Applies to Locally Employed Staff Only)
a. When the mission has LE staff who are scheduled to work on rotating shifts, a shift differential may be authorized when supported by relevant local law or local prevailing practice.
b. The shift differential rate is based on local law and locally prevailing practice. When relevant local law provides for a shift work premium but does not specify the amount, and there is insufficient data on locally prevailing practice, the shift differential with be set at a maximum of 10% of basic salary. The mission may request a lower rate.
c. Work outside of the shift is overtime work and is compensated accordingly.
d. A shift differential is not paid for hours not actually worked, including leave, holidays, compensatory time used, and excused absence. An exception may be authorized by the Department if relevant local law provides otherwise.
e. An employee with a part-time or irregular workweek schedule is eligible for the shift differential if the employee is required to work on a rotating shift.
3 FAM 7558 On-Call Status and Standby Duty
3 FAM 7558.1 On-Call Status
(CT:PER-843; 05-11-2017)
(State and All Agencies under COM Authority)
(Applies to Locally Employed Staff Only)
a. On-call status is a requirement to be available to return to duty on short notice during off duty hours. While in on-call status, the employee may move about as long as the employee can be reached by telephone, beeper, or similar device and, if so ordered, be able to return to the duty station within 1 hour to perform urgent work.
b. There is no entitlement to compensation for the hours that an employee is in on-call status and not working. Compensation starts once the employee begins working at the duty station or alternate site as provided in paragraph d of this section. An exception may be authorized by the Department only if relevant local law provides otherwise.
c. An authorizing officer at the mission will request qualified volunteers for on-call availability. Management will not impose any restraint or coercion on employees who decline to volunteer. In the absence of sufficient volunteers, the authorizing officer may assign on-call status on a rotating basis among employees with the requisite skills. An employee who refuses to perform on-call duty when so assigned, without an acceptable justification, may be subject to disciplinary action, consistent with local law.
d. When an employee is in on-call status and required to periodically work for short periods of time, and such work can be accomplished without returning to the duty station (e.g., a first response duty team member who answers, screens, and forwards consular related telephone inquiries or a nurse who handles telephone inquiries), then the time spent working will be compensated, as applicable, in accordance with the mission's premium pay plan.
3 FAM 7558.2 Standby Duty
(CT:PER-843; 05-11-2017)
(State and All Agencies under COM Authority)
(Applies to Locally Employed Staff Only)
a. Standby duty is a state of readiness to immediately answer a call to work outside of basic workweek hours. The employee's whereabouts are narrowly limited and activities are substantially reduced. The employee may not leave the duty station except in an emergency.
b. Premium pay for standby duty is based on local law and locally prevailing practice. When relevant local law provides for a standby duty premium but does not specify the amount, and there is insufficient data on locally prevailing practice, the Department will authorize up to a 25% standby duty payment. The mission may request a lower rate.
c. Unless relevant local law provides otherwise, during standby duty, up to 8 hours will be considered sleep and meal time and not compensated if:
(1) The standby duty shift is 24 hours or longer; and
(2) During the standby duty there are adequate facilities so that an employee may usually enjoy an uninterrupted period of sleep of at least 5 hours.
d. When the employee is required to perform work while on standby duty, the period of working time will be compensated as overtime work or, if appropriate, as holiday work, in accordance with the terms of the mission's premium pay plan.
3 FAM 7559 Miscellaneous
3 FAM 7559.1 More than One Premium Pay Rate
(CT:PER-843; 05-11-2017)
(State and All Agencies under COM Authority)
(Applies to Locally Employed Staff Only)
If more than one premium pay rate applies to the same hour of work, the rates will be added and the total paid, unless relevant local law provides otherwise. For example, a mission has a 10% night differential rate. An employee who is regularly scheduled to work at night is required to work on a U.S. holiday (100% premium). The employee will receive a total premium of 110% in addition to regular pay.
3 FAM 7559.2 Shelter in Place
(CT:PER-843; 05-11-2017)
(State and All Agencies under COM Authority)
(Applies to Locally Employed Staff Only)
During a shelter-in-place or other emergency, LE staff may be restricted to their post’s premises for periods that extend beyond their normal tour of duty. Unless relevant local law provides otherwise, the time period when an employee is restricted to a work location due to an emergency outside of the control of the mission and is not required to perform work, is not compensable hours of duty. However, if an employee is required to remain in a state of readiness to perform work and/or work during this extended period, they may be entitled to premium pay (e.g. stand-by pay or overtime pay) as outlined in the premium pay plan.
3 FAM 7559.3 Premium Pay When on TDY at Another Post
(CT:PER-843; 05-11-2017)
(State and All Agencies under COM Authority)
(Applies to Locally Employed Staff Only)
a. Receipt of per diem does not affect an employee's entitlement to pay for regular duty, overtime work, or holiday work.
b. An employee who is on temporary duty (TDY, including detail and training) in another country continues to be paid under the employee's home country's LCP, including the premium pay plan. The employee is not eligible for any premium pay rates from the LCP for the country where the TDY takes place.
c. If the employee is required to work or attend training on a day that is a local holiday in the employee's home country, and the local holiday occurs during the employee's basic workweek, then the employee is entitled to local holiday pay.
d. When there is a local holiday in the country where the TDY takes place, and it is not also a local holiday in the employee's home country, then an employee who is not required to work or attend training is granted excused absence. The employee is not required to use leave or earned compensatory time. An employee who is required to work or attend training in these circumstances is compensated with basic salary. Local holiday pay is not warranted since it is not a Local Holiday in the employee's home country.
e. See also 3 FAM 7412.2 regarding a temporary change to the employee's basic workweek days when customary workweek days in the employee's home country are different from those in the country where the TDY takes place.