U.S. Office of Personnel Management - Ensuring the Federal Government has an effective civilian workforce

Hourly and biweekly rates for General Schedule employees are computed under 5 U.S.C. 5504. Premium pay is computed under 5 U.S.C. chapter 55, subchapter V, and 5 CFR part 550, subpart A. The rates are computed based on an employee's annual rate of basic pay, including any applicable special rate supplement or locality payment. (NOTE: Overtime pay for nonexempt employees is computed under the Fair Labor Standards Act, subject to some special rules for Federal employees. See 5 CFR part 551. In addition, firefighters covered by 5 U.S.C. 5545b are subject to special rules for computing hourly rates and overtime pay. See 5 CFR part 550, subpart M.)

Rates must be rounded to the nearest cent, counting one-half cent and over as the next higher cent (e.g., round $18.845 to $18.85).

Follow the rules below to compute rates of pay. (NOTE: The examples below are based on annual rates that have been increased by a locality pay percentage of 20.89%. See Salary Table 2008-DCB)

**Hourly Rate.**Divide annual rate of basic pay by 2,087 hours.

GS-9, step 1 = $ 48,108.

$ 48,108 / 2,087 hours = $ 23.05.**Biweekly Rate.**Multiply hourly rate of basic pay by 80 hours.

$ 23.05 x 80 hours = $ 1,844.00.

**Title 5 Overtime Hourly Rate****if employee's rate of basic pay is less than rate of basic pay for GS-10, step 1.**Multiply hourly rate of basic pay by 1.5.

$ 23.05 x 1.5 = $ 34.58.

**if employee's rate of basic pay is more than rate of basic pay for GS-10, step 1.**Use the greater of (1) the GS-10, step 1, hourly rate of basic pay multiplied by 1.5 OR (2) the employee's hourly rate of basic pay. (5 CFR 550.113)

GS-10, step 1 = $ 52,979.

$ 52,979 / 2,087 hours = $ 25.39.

$ 25.39 x 1.5 = $ 38.09.GS-14, step 1 = $ 98,033.

$ 98,033 / 2,087 hours = $ 46.97.

In this example, the employee's hourly rate of basic pay ($46.97) is greater than the GS-10, step 1, hourly rate of basic pay multiplied by 1.5 ($38.09). Therefore, the employee's title 5 overtime hourly rate is equal to his or her hourly rate of basic pay.

**Night Pay.**Multiply hourly rate of basic pay by 10%. (5 CFR 550.121)

GS-9, step 1 = $ 48,108.

$ 48,108 / 2,087 hours = $ 23.05.

$ 23.05 x 0.10 = $ 2.31.**Sunday Premium Pay.**Multiply hourly rate of basic pay by 25%. (5 CFR 550.171)

$ 23.05 x 0.25 = $ 5.76.

**Holiday Premium Pay.**Multiply hourly rate of basic pay by number of nonovertime hours worked on holiday (not to exceed 8 hours or the number of nonovertime hours of a compressed work schedule). (5 CFR 550.131 and 5 CFR 610.407)

$ 23.05 x 8 hours = $ 184.40.