Pay & Leave

How to Calculate the Number of Hours of Overtime or Compensatory Time That an Employee Can Earn Without Exceeding the Biweekly Pay Limit

Except in emergencies, GS/GM employees (FLSA nonexempt staff excluded) may not earn more than the GS-15, step 10 or Level V of the Executive Schedule for a biweekly salary (in any one pay period).   The formula below shows how to compute the amount of overtime or compensatory time which can be earned without exceeding the biweekly limit.

First, determine which is greater for your location, the biweekly rate for            GS-15, step 10 http://www.opm.gov/oca/08tables/index.asp OR Level V of the Executive Schedule http://www.opm.gov/oca/08tables/indexSES.asp

A = GS/GM-15, Step 10, Biweekly Gross Salary or Executive Level V

B = Employee's Biweekly Gross Salary (from AD-334, Statement of Earnings and Leave or from the salary tables)

X = the difference between A and B (the amount that can still be earn and not exceed the limit)

Y = the current overtime hourly rate for the GS/GM employee’s locality

Z = the number of overtime or compensatory time hours the employee can work without exceeding A.
 
EXAMPLE:  The 2008 biweekly pay limit in the Baltimore-Washington, D.C. locality for a GS15/10 is $5,711.20. ($149,000 gross divided by 2087 = $71.39 X 80 = $5,711.20).      (Level V is $139,600 divided by 2087 = $66.89 X 80 = $5,351.20)  DC is higher.

To calculate for a GS/GM 14, Step 8 In the Washington, D.C. area, the GS/GM-14, Step 8, employee has a gross biweekly salary of (B) $4,634.40 ($120,907 divided by 2087 = $57.93 x 80 = $4,634.40)

(A) $5,711.20 - (B) $4,634.40 = (X) $1076.80

(X) $1,076.80 divided by (Y) $57.93 = (Z) 18.59 hours… rounded up to 18.75 hours (NFC rounds up to next quarter hour)

Other Pay Considerations

• Compensatory Time Off for Travel, Cash awards, and credit hours earned  do not count against the biweekly earnings limit.
• The 2008 calendar year aggregate limit on pay is $191,300.  Under this limit, employees may not receive a cash payment which when combined with total basic pay would cause their aggregate calendar year compensation to exceed $191,300.

If you want help with performing the calculation or need the biweekly pay limit for other locality pay areas, please contact Michelyn Boyd (301) 504-1466, Terri Ponte, 301-504-1474 or Ted Nykiel, (301) 504-4426, Human Resources Division.

Updated: 01/15/2008