Department of Defense
MANUAL
NUMBER 1416.08
May 30, 2013
Incorporating Change 1, Effective July 23, 2020
USD(P&R)
SUBJECT: DoD Manual for Foreign National Compensation
References: See Enclosure 1
1. PURPOSE. This manual reissues DoD Manual 1416.8-M (Reference (a)) in accordance with
the authority in DoD Directive 5124.02 (Reference (b)); DoD Instruction 1400.25, Volume 1251
(Reference (c)); and section 3968 of Title 22, United States Code (U.S.C.) (Reference (d)) to
prescribe procedures and instructions on DoD compensation administration for foreign national
employees in foreign areas.
2. APPLICABILITY. This manual:
a. Applies to OSD, the Military Departments, the Office of the Chairman of the Joint Chiefs
of Staff and the Joint Staff, the combatant commands, the Office of the Inspector General of the
Department of Defense, the Defense Agencies, the DoD Field Activities, and all other
organizational entities within the DoD (referred to collectively in this manual as the “DoD
Components”).
b. Does not apply to:
(1) DoD Components that have established activities under Chief of Mission authority at
diplomatic missions with human resource support provided to the DoD by the Department of
State (DOS). Instead, a DoD and DOS Memorandum of Agreement (Reference (e)) and chapter
200 of the U.S. Department of State Foreign Affairs Handbook (Reference (f)) applies.
(2) Indirect hire systems where the U.S. forces, by agreement, use host government
compensation systems, and the U.S. forces do not retain pay fixing authority, except that the total
compensation comparability (TCC) provisions (see Enclosure 9) apply in all cases.
3. POLICY. It is DoD policy in accordance with Reference (c) that:
