The way that FCDO contracts are structured creates disincentives for implementing partners to hire local staff, particularly in project lead roles. While FCDO fee rates for locally hired staff may be linked to local pay-scales in humanitarian and development settings, they can lead to large inequalities when compared to internationally hired staff. This can undermine relations with local actors, damage trust and make frontline workers feel undervalued.

The way that FCDO contracts are structured creates disincentives for implementing partners to hire local staff, particularly in project lead roles. While FCDO fee rates for locally hired staff may be linked to local pay-scales in humanitarian and development settings, they can lead to large inequalities when compared to internationally hired staff. This can undermine relations with local actors, damage trust and make frontline workers feel undervalued. Type: conclusion | Number: 34 | Paragraph: 89 | Response status: under_consideration Government response: The FCDO has a responsibility to maintain stability and avoid distortion of local markets. We must ensure wages are fair in regional contracts and that fees accurately reflect costs of living. We assess wages in categories (international, national or regional) as well as by job ‘family’ at Initiatio