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Prevailing Wage for A-3 and G-5 Domestic Workers

NOTICE: Effective March 8, 2016 the 9 FAM 402.3-9(B)(4) notes have been updated to reflect a change in wage requirements for G-5 domestic workers, as well as A-3, B-1, and NATO-7 domestic workers. Effective immediately, all contracts for domestic workers must state an hourly wage to be paid to the domestic worker, and the rate must meet or exceed  the greater of the minimum wage under U.S. federal, state, or local law.

Consular officers will no longer be required to compare prevailing wage and minimum wage to determine the appropriate wage in contracts for these domestic workers. Instead, officers will determine whether the wage to be paid to the domestic worker as stated in the contract is at least the greater of the federal minimum wage and the state or local minimum wage where the applicant will work. Existing G-5 contracts must be amended to reflect the greater of the appropriate minimum wage or the hourly rate of contract. When the local minimum wage changes, contracts must be immediately amended and brought into compliance.

Download HWS’ Free G-5 Domestic Payroll Guide!

G-5 Domestic Household Payroll Guide

G-4 payroll compliance is subject to audit. Why?

Sponsoring organizations such as the World Bank, IMF and OAS have implemented procedural safeguards to ensure proper wage payment and tax compliance on the part of BOTH the G-4 sponsor and the G-5 domestic. They are required to do so by the U.S. State department (9 FAM 41.21 N6.6). Fees may be imposed on the G-4 sponsor by their host organization to offset audit expenses. These fees are waived if the G-4 subscribes to a household employee payroll service.

All G-5 and A-3 employment contracts are subject to automatic adjustment on the effective date of any minimum wage change. Adjustments made AFTER the effective date are subject to retroactive payroll adjustment.