Under 5 U.S.C. 5547(a) and 5 CFR 550.105, General Schedule (GS) employees and other covered employees may receive certain types of premium pay for a biweekly pay period only to the extent that the sum of basic pay and premium pay for the pay period does not exceed the greater of the biweekly rate payable for (1) GS-15, step 10 (including any applicable locality payment or special rate supplement), or (2) the rate payable for level V of the Executive Schedule. (See NOTE 1.) The biweekly rate is computed by (1) dividing the applicable annual rate by 2,087 hours, (2) rounding the resulting hourly rate to the nearest cent, and (3) multiplying the hourly rate by 80 hours. For example, in Atlanta, GA, the GS-15, step 10, annual locality rate of $145,464 divided by 2,087 hours yields an hourly rate of $69.70 and a biweekly rate of $5,576.00 ($69.70 x 80 hours). Similarly, the Executive Level V annual rate of $139,600 divided by 2,087 hours yields an hourly rate of $66.89 and a biweekly rate of $5,351.20 ($66.89 x 80 hours).
The table below provides the biweekly premium pay caps for 2008 by locality pay area. These caps become effective as of the first day of the first pay period beginning on or after January 1, 2008.
|Locality Pay Area
(see NOTE 2)
|Locality Pay Percentage||Greater of the GS-15, Step 10, Locality Rate or Level V of the Executive Schedule (see NOTE 3)|
|Biweekly Cap||Applicable Annual Cap Assuming 26 Biweekly Salary Payments (see NOTES 1 and 4)|
|Atlanta-Sandy Springs-Gainesville, GA-AL||17.30%||$5,576.00||$144,976.00|
|Chicago-Naperville-Michigan City, IL-IN-WI||23.16%||5,711.20||148,491.20|
|Dallas-Fort Worth, TX||18.74%||5,644.80||146,764.80|
|Hartford-West Hartford-Willimantic, CT-MA||23.97%||5,711.20||148,491.20|
|Los Angeles-Long Beach-Riverside, CA||25.26%||5,711.20||148,491.20|
|Miami-Fort Lauderdale-Pompano Beach, FL||19.11%||5,662.40||147,222.40|
|Minneapolis-St. Paul-St. Cloud, MN-WI||19.43%||5,677.60||147,617.60|
|New York-Newark-Bridgeport, NY-NJ-CT-PA||26.36%||5,711.20||148,491.20|
|Pittsburgh-New Castle, PA||14.93%||5,463.20||142,043.20|
|Sacramento-Arden-Arcade-Yuba City, CA-NV||20.25%||5,711.20||148,491.20|
|San Diego-Carlsbad-San Marcos, CA||22.00%||5,711.20||148,491.20|
|San Jose-San Francisco-Oakland, CA||32.53%||5,711.20||148,491.20|
|Washington-Baltimore-Northern Virginia, DC-MD-VA-WV-PA||20.89%||5,711.20||148,491.20|
|Rest of United States||13.18%||5,380.00||139,880.00|
|Outside Continental United States||NA||5,351.20||139,131.20|
In certain emergency or mission critical situations, an agency may apply an annual premium pay cap instead of a biweekly premium pay cap, subject to the conditions provided in law and regulation. (See 5 U.S.C. 5547(b) and 5 CFR 550.106-550.107.) See NOTE 4 regarding the method of computing the annual premium pay cap.
See 5 CFR 531.603(b) and http://www.opm.gov/oca/08tables/locdef.asp for definitions of locality pay areas.
Certain special rate employees may have a higher biweekly premium pay cap at GS-15, step 10, than that shown in the table above. Since both locality rates and special rates may not exceed level IV of the Executive Schedule ($149,000 annual rate, $5,711.20 biweekly rate), the highest possible biweekly cap is $5,711.20.
The amount of the annual premium pay cap is computed by multiplying the applicable biweekly rate by the number of biweekly salary payments in the given year. (See 5 CFR 550.106(d).) The annual caps listed in the table above apply to employees with 26 biweekly salary payments in 2008. However, based on the payroll schedule of their servicing payroll provider, some employees will have 27 biweekly salary payments in 2008. For these employees, the applicable annual cap is equal to the applicable biweekly rate multiplied by 27.
Under section 1105 of Public Law 109-163, as amended, the head of an agency may waive the premium pay cap provisions under 5 U.S.C. 5547 in calendar year 2008 for an employee who performs work while in an overseas location that is in the area of responsibility of the commander of the United States Central Command, in direct support of or directly related to a military operation (including a contingency operation as defined in 10 U.S.C. 101(13)) or an operation in response to an emergency declared by the President. Under the waiver authority, a covered employee may receive premium pay in calendar year 2008 to the extent that such premium pay would not cause the employee's aggregate amount of basic pay and premium pay payable in calendar year 2008 to exceed $212,100. (See CPM 2008-04.)