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

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Performance & Compensation

Incentive Payments

Recruitment: An agency may pay a recruitment incentive to a newly-appointed career executive if the agency has determined that the position is likely to be difficult to fill in the absence of an incentive. A recruitment incentive may not exceed 25 percent of the executive's annual rate of basic pay in effect at the beginning of the service period multiplied by the number of years (including fractions of a year) in the service period (not to exceed 4 years).

Relocation: An agency may pay a relocation incentive to a current career executive who must relocate to accept a position in a different geographic area if the agency determines that the position is likely to be difficult to fill in the absence of an incentive. A relocation incentive may be paid only when the executive's rating of record under an official performance appraisal or evaluation system is at least “Fully Successful” or equivalent. A relocation incentive may not exceed 25 percent of the executive's annual rate of basic pay in effect at the beginning of the service period multiplied by the number of years (including fractions of a year) in the service period (not to exceed 4 years).

Retention: An agency may pay a retention incentive to a current career executive if (1) the agency determines that the unusually high or unique qualifications of the executive or a special need of the agency for the executive's services makes it essential to retain the executive, and that the executive would be likely to leave the Federal service in the absence of a retention incentive, or (2) the agency has a special need for the employee's services that makes it essential to retain the employee in his or her current position during a period of time before the closure or relocation of the employee's office, facility, activity, or organization and the employee would be likely to leave for a different position in the Federal service in the absence of a retention incentive. A retention incentive may be paid only when the executive's rating of record under an official performance appraisal or evaluation system is at least “Fully Successful” or equivalent. A retention incentive rate, expressed as a percentage of the executive's rate of basic pay, may not exceed 25 percent.

Detailed information is available at OPM's pay website.