The Office of Personnel Management (OPM) provides leadership on pay administration for civilian Federal employees. We accomplish this by developing and maintaining Governmentwide regulations and policies on authorities such as basic pay setting, locality pay, special rates, back pay, pay limitations, premium pay, grade and pay retention, severance pay, and recruitment, relocation, and retention incentives. Ultimately, each Federal agency is responsible for complying with the law and regulations and following OPM's policies and guidance to administer pay policies and programs for its own employees.

Pay Policy Updates

• CPM 2012-14 2012 Annual Review of Special Rates (Results)
• CPM 2012-13 Executive Order for 2013 Pay Schedules
• CPM 2012-12 2013 Pay Adjustments for Federal Civilian Employees

Highlights

• Recruitment, Relocation, and Retention Incentives
• Biweekly Caps on Premium Pay

Pay Administration Alerts Email List

• Subscribe to What's New in Pay & Leave

Special pay and benefits apply to eligible civilian Federal employees assigned to duty in certain combat zones such as Iraq and Afghanistan. The Department of Defense, the Department of State, and the Department of Labor administer many of the pay and benefits programs provided to Federal civilian employees working in overseas locations, including combat zones. Pay and benefits may vary depending on the employee's pay system, assignment location, scope and nature of duties, and nature of assignment. Please check with your agency's local human resources office to verify the benefits that apply to you.

Pay and Benefits for Federal Civilian Employees in Combat Zones

We at OPM are committed to recruiting, retaining, and honoring a world-class workforce to serve the American people. This commitment includes doing all we can to help ensure that deployed civilians receive fair and accurate compensation and benefits in a timely way.

Below is a brief list of some of the major authorities currently available to agencies that may help attract and retain Federal civilians in a combat zone.

• Effective January 1, 2012, section 1104 of Public Law 112-81, December 31, 2011, extends to calendar year 2012 the authority provided in section 1101(a) of Public Law 110-417, October 14, 2008, as amended by section 1103 of Public Law 111-383, January 7, 2011, for the head of an agency to waive the premium pay cap provisions under 5 U.S.C. 5547. NOTE: Since the United States no longer has a military operation in Iraq, the higher premium pay cap cannot be applied to employees working in Iraq on that basis. However, the President issued a notice on May 18, 2012, that continues the declared national emergency in Iraq for 1 year (through May 22, 2013) to support stabilization efforts. The higher premium pay cap may be based on the Presidentially-declared national emergency in Iraq. The waiver authority expires December 31, 2012. Please see CPM 2012-02 and CPM 2012-05 for additional information.
• Section 1112 of Public Law 112-81, December 31, 2011, amends section 1603(a)(2) of Public Law 109-234, June 15, 2006, as amended by Public Law 110-417, October 14, 2009, to grant the head of an agency the discretionary authority to provide allowances, benefits , and gratuities comparable to those provided by the Secretary of State to members of the Foreign Service under section 413 and chapter 9 of title I of the Foreign Service Act of 1980. This authority was provided until September 30, 2013. Therefore, OPM's Memorandum for Heads of Executive Departments and Agencies, CPM 2009-26, December 29, 2009, continues to apply regarding the use of the Foreign Service Act provision.
• OPM regulations give agencies the discretionary authority to provide recruitment, relocation, and retention incentive payments (of as much as 25 to 100 percent of basic pay, in some cases) to address difficulties in recruiting or retaining employees in combat zones. (See 5 CFR part 575, subparts A, B, and C.)
• Going to a combat zone can be considered "a life event" that allows employees an opportunity to elect different health insurance coverage or enhanced life insurance coverage.
• The ceiling on the amount of annual leave that may be carried over to the next year is 360 hours for employees serving overseas, compared to 240 hours for those serving in the U.S.
• Agencies have the ability to offer time off awards. (See 5 U.S.C. 4502(e).)
• The Department of State Standardized Regulations (DSSR) provide a number of important allowances, such as post differential (for hardship conditions) and danger pay.
• The Federal Employees' Compensation Act (FECA), 5 U.S.C. 8101 et seq, provides comprehensive workers' compensation coverage for deployed employees in zones where armed conflict may take place. (See also 20 C.F.R Part 10, Federal (FECA) Procedure Manual and related guidance available from the website identified below.) A wide variety of benefits are available under FECA including medical and wage loss benefits, schedule awards for permanent impairment due to loss of hearing, vision or certain organs, vocational rehabilitation for injured employees; survivor benefits are available if an employee is killed in performance of duty or if an employee later dies from a covered injury. The Department of Labor's Office of Workers' Compensation Programs is authorized to pay an additional death gratuity of $100,000 to the survivor(s) of an "employee who dies of injuries incurred in connection with the employee's service with an Armed Force in a contingency operation." For more information, please refer to the Department of Labor's regulations on these provisions at http://www.dol.gov/owcp/dfec/index.htm and http://www.dol.gov/owcp/dfec/DeathGratuity.htm.

Medical Care for Federal Civilian Employees in Combat Zones

In many of these combat zone areas, the Department of Defense's (DOD's) medical facilities are the only source of health care available to Federal employees. As such, non-DOD civilian employees of Federal agencies who become ill, contract disease, or are injured or wounded while serving in these areas are authorized treatment at military treatment facilities (MTF) in theater or, if necessary, air evacuation to an MTF outside the area of operations at the same level and support as the military until medical management disengagement and/or discharge.

If a non-DOD Federal employee would like to continue treatment at a military MTF, the employee must submit a written request to the Under Secretary of Defense (Personnel and Readiness, USD P&R) explaining the compelling circumstances that warrant continued care at a MTF. For example, the MTF is distinguished and has special or unique experience in treating an employee's injury, disease, or illness. However, the employee must first have an accepted Federal Employees' Compensation Act (FECA)(5 U.S.C. 8101 et seq) claim for his/her assignment related to the illness, disease, or injury from the Department of the Labor's Office of Workers' Compensation Programs. The request form for continued care at DOD's MTFs can be submitted electronically and through regular mail. The request form is located on DOD's web site.

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Federal workers' pay should be protected when they put on the uniform to defend America. But it is not for some members of the Guard and Reserves.

We are now taking a large step toward making workers whole through 'reservist differential' payments. Under a new law, OPM has published instructions for agencies on how to properly pay eligible Federal civilian employees who are serving in the Reserves or National Guard. This new law will protect them and their families by making up the difference between their active duty military pay and their civilian basic pay whenever their civilian basic pay is higher."

Federal Civilian Employees Called to Active Duty

Section 751 of the Omnibus Appropriations Act, 2009 (Public Law 111-8, March 11, 2009) added a new section 5538 to title 5, United States Code. This new section provides a new benefit to certain Federal civilian employees who are (1) absent from employment with the Federal Government because they are ordered to perform active duty in the uniformed services under a provision of law specifically referenced in 10 U.S.C. 101(a)(13)(B) and (2) entitled to reemployment rights under 38 U.S.C. chapter 43 based on such absence.

Information on Reservist Differential

• Policy Guidance (Print Version)
• Reservist Differential Policy Guidance Supplement
• Reservist Differential - Summary Description
• Reservist Differential Implementation Guidance
• Reservist Differential FAQs

Additional Information on Reservist Benefits

• Military Leave Factsheet
• Military Leave FAQs
• Health Benefits
• Life Insurance

Historical Memos

• 04/13/2011 - Reservist Differential Policy Update Memo
• 04/14/2010 - Reservist Differential Implementation Update Memo
• 12/08/2009 - Reservist Differential Memo
• 04/03/2009 - Nonreduction in Pay for Certain Federal Civilian Employees on Active Duty in the Uniformed Services or National Guard Memo

Policy Guidance

This document provides guidance to agencies on implementing a new law providing differential payments to eligible Federal civilian employees who are members of the Reserve or National Guard (hereafter referred to as "reservists") called or ordered to active duty under certain specified provisions of law.

• Policy Guidance (Print Version)

Summary Description

Overview

Under 5 U.S.C. 5538, employing agencies must pay differential payments to eligible Federal civilian employees who are members of the Reserve or National Guard (hereafter referred to as "reservists") called or ordered to active duty under certain specified provisions of law. Federal agencies must provide a payment (a "reservist differential") equal to the amount by which an employee's projected civilian "basic pay" for a covered pay period exceeds the employee's actual military "pay and allowances" allocable to that pay period.

Section 5538 became effective on the first day of the first pay period beginning on or after March 11, 2009 (i.e., March 15, 2009, for executive branch employees on the standard biweekly payroll cycle).

Coverage

Section 5538 applies to all employees and agencies within the Federal Government (executive, legislative, and judicial branches) unless the employee or agency is excluded from coverage by other provision of law.

Qualifying Period

A reservist differential under section 5538 is payable to an employee during a "qualifying period" during which the employee meets both of the following conditions:

1. A covered employee is absent from a Federal civilian position in order to perform active duty in the uniformed services pursuant to a call or order to active duty under section 331, 332, 333, 688, 12301(a), 12302, 12304, 12305, or 12406, of title 10, United States Code, and is serving on such qualifying active duty; and
2. The employee is entitled to reemployment rights under the Uniformed Services Employment and Reemployment Rights Act (USERRA - 38 U.S.C. chapter 43) for such active duty.

The employee-reservist must provide his or her employing agency with a copy of his or her military orders. The employing agency will determine whether the employee-reservist meets the conditions described above.

Pay and Leave Status

The receipt of a reservist differential does not affect an employee's civilian pay and leave status. While absent from the civilian job, the employee is considered to be on leave without pay-unless the employee takes civilian paid leave or other paid time off. The employee may use paid time off (e.g., military leave, annual leave, credit hours, compensatory time off), as available to the employee, subject to the normal conditions governing use of the particular paid time off. A reservist may not receive the reservist differential for periods during which he or she uses paid time off, since the reservist is already receiving full civilian pay for such periods. (During civilian paid time off, the reservist receives full military pay and full civilian pay, except that civilian pay is offset by military pay when an employee uses military leave under 5 U.S.C. 6323(b). During civilian leave without pay periods, the reservist receives full military pay and may receive a reservist differential, which represents the amount by which civilian basic pay exceeds military pay and allowances.) Thus, the reservist differential for a pay period will be adjusted to account for any hours of paid time off.

There are two types of military leave that may be used by civilian employees during qualifying military active duty:

1. Regular military leave under 5 U.S.C. 6323(a) - providing 15 days of leave each fiscal year with no military pay offset (i.e., full military and civilian pay); and
2. Special military leave for contingency operations or law enforcement purposes under 5 U.S.C. 6323(b) - providing up to 22 days of leave each calendar year but with civilian pay offset by the amount of military pay allocated to those leave days, as required by 5 U.S.C. 5519.

In considering whether to use special military leave under section 6323(b) or to receive a reservist differential, employees should take into account the following facts:

• When payments for military leave are offset by military pay, only civilian workdays are considered. Thus, an employee on military leave under section 6323(b) for a biweekly pay period can receive 10 days of paid leave (offset by military pay for those days) plus 4 days of military pay for the civilian nonworkdays (i.e., for most employees, weekend days). This means the total pay for the period can exceed the regular civilian pay for the period.
• Employees may not use regular military leave under section 6323(a) until they exhaust any special military leave under section 6323(b) that is available to use. (See 49 Comp. Gen. 233 (1969).)
• The amount of the reservist differential depends solely on the amount of civilian basic pay, while the payment for military leave may reflect additional types of civilian pay.

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Projected Civilian Basic Pay

The employing agency must determine the projected gross amount of civilian "basic pay" that would otherwise have been payable to an employee for each pay period within a qualifying period if the employee's civilian employment had not been interrupted by military active duty. Only "basic pay" as defined in OPM guidance is considered.

The employing agency must adjust an employee's projected rate of basic pay as it would have been adjusted (with reasonable certainty) but for the interruption of military active duty. This would include general increases, locality pay increases, and within-grade increases (based on longevity and acceptable performance). It could also include certain career-ladder promotion increases and performance-based basic pay increases, if the reasonable certainty standard is met.

Military Pay and Allowances

The employee-reservist must provide his or her employing agency with a copy of his monthly military leave and earnings statement for each affected month. Based on those statements, the employing agency must determine the actual paid gross amount of military pay and allowances allocable to each pay period in a qualifying period. A definition of "military pay and allowances" is included in OPM guidance. Military pay and allowances are payable on a monthly basis. For each affected month, a daily rate will be computed by dividing the monthly total by 30 days for full months or by the actual number of days for partial months. Military pay and allowances will be allocated to a civilian pay period (usually a 2-week period) based on the applicable daily rate for days within the pay period.

Computation of Differential

For each civilian pay period, the employing agency must compare the projected civilian basic pay to the allocated military pay and allowances. If the allocated military pay and allowances are greater than or equal to the projected civilian basic pay, no reservist differential is payable for that pay period. If the projected civilian basic pay is greater than the allocated military pay and allowances, the difference represents the unadjusted reservist differential.

The reservist differential is not payable for periods during which the employee is receiving civilian basic pay for performing work or using civilian paid leave or other paid time off. Thus, the unadjusted reservist differential must be adjusted (reduced) to take into account any paid hours (paid work or paid time off). The agency must follow the adjustment methodology prescribed by OPM in its guidance.

Payment

The reservist differential must be paid from the same appropriation or fund that would have been used to pay the employee's civilian salary but for the interruption to perform military active duty. Reservist differentials should be paid at the same frequency as regular civilian salary payments (e.g., generally on a biweekly basis for executive branch employees). Given the need to obtain information about an individual's military pay and allowances and other matters to accurately compute the reservist differential, a reservist differential is considered due and payable on a scheduled date that is no later than 8 weeks (4 biweekly pay periods) after the normal civilian salary payment date for a given pay period, except that this scheduled date may be pushed back beyond 8 weeks if the employee does not provide the agency with a copy of any needed military orders and military leave and earnings statement on a timely basis.

The reservist differential is not basic pay for any purpose. The reservist differential is considered to be pay for the purposes of various other laws governing Federal employee compensation (e.g., laws governing salary offset for debt collection, waiver of overpayments, garnishment, back pay). However, the reservist differential will not be counted as part of aggregate compensation in applying the aggregate pay limit in 5 U.S.C. 5307.

Taxability

The Internal Revenue Service has given OPM the following guidance regarding the treatment of reservist differentials paid under 5 U.S.C. 5538 for Federal tax purposes:

• Reservist differentials are taxable income for Federal income tax purposes.
• Reservist differentials are treated as wages for Federal income tax withholding purposes, regardless of the length of the active duty. Reservist differentials would be reported as wages in box 1 of Form W-2 and in line 7 of Form 1040.
• Reservist differentials are not subject to FICA (Social Security and Medicare) taxes if those differential payments are paid for periods of active duty of more than 30 days.
• Reservist differentials are subject to FICA taxes if those differential payments are paid for periods of active duty of 30 days or less.

References

• 5 U.S.C. 5538 [added by section 751 of the Omnibus Appropriations Act, 2009 (Public Law 111-8, March 11, 2009) and amended by section 745 of the Consolidated Appropriations Act, 2010 (Public Law 111-117, December 16, 2009)]
• OPM Policy Guidance Regarding Reservist Differential under 5 U.S.C. 5538, originally issued on December 8, 2009, via memorandum to agency Chief Human Capital Officers, and most recently amended and reissued on April 13, 2011
• OPM regulations are under development.

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2012

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 $154,501 divided by 2,087 hours yields an hourly rate of $74.03 and a biweekly rate of $5,922.40 ($74.03 x 80 hours). Similarly, the Executive Schedule Level V annual rate of $145,700 divided by 2,087 hours yields an hourly rate of $69.81 and a biweekly rate of $5,584.80 ($69.81 x 80 hours).

The table below provides the biweekly and annual premium pay caps for 2012 by locality pay area. These caps become effective as of the first day of the first pay period beginning on or after January 1, 2012.

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2011

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 $154,501 divided by 2,087 hours yields an hourly rate of $74.03 and a biweekly rate of $5,922.40 ($74.03 x 80 hours). Similarly, the Executive Schedule Level V annual rate of $145,700 divided by 2,087 hours yields an hourly rate of $69.81 and a biweekly rate of $5,584.80 ($69.81 x 80 hours).

The table below provides the biweekly premium pay caps for 2011 by locality pay area. These caps become effective as of the first day of the first pay period beginning on or after January 1, 2011.

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2010

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 $154,501 divided by 2,087 hours yields an hourly rate of $74.03 and a biweekly rate of $5,922.40 ($74.03 x 80 hours). Similarly, the Executive Schedule Level V annual rate of $145,700 divided by 2,087 hours yields an hourly rate of $69.81 and a biweekly rate of $5,584.80 ($69.81 x 80 hours).

The table below provides the biweekly premium pay caps for 2010 by locality pay area. These caps become effective as of the first day of the first pay period beginning on or after January 1, 2010.

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2009

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 $151,275 divided by 2,087 hours yields an hourly rate of $72.48 and a biweekly rate of $5,798.40 ($72.48 x 80 hours). Similarly, the Executive Schedule Level V annual rate of $143,500 divided by 2,087 hours yields an hourly rate of $68.76 and a biweekly rate of $5,500.80 ($68.76 x 80 hours).

The table below provides the biweekly premium pay caps for 2009 by locality pay area. These caps become effective as of the first day of the first pay period beginning on or after January 1, 2009.

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2008

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.

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2007

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 Washington, DC, the GS-15, step 10, annual locality rate of $143,471 divided by 2,087 hours yields an hourly rate of $68.75 and a biweekly rate of $5,500 ($68.75 x 80 hours). Similarly, the Executive Level V annual rate of $136,200 divided by 2,087 hours yields an hourly rate of $65.26 and a biweekly rate of $5,220.80 ($65.26 x 80 hours).

The table below provides the biweekly premium pay caps for 2007 by locality pay area. These caps become effective as of the first day of the first pay period beginning on or after January 1, 2007.

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2006

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 for (1) GS-15, step 10 (including any applicable locality payment or special rate supplement), or (2) level V of the Executive Schedule. (See NOTE 1.) The biweekly rate is computed by (1) dividing the applicable scheduled 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 Washington, DC, the GS-15, step 10, scheduled annual locality rate of $139,774 divided by 2,087 hours yields an hourly rate of $66.97 and a biweekly rate of $5,357.60 ($66.97 x 80 hours). Similarly, the Executive Level V annual rate of $133,900 divided by 2,087 hours yields an hourly rate of $64.16 and a biweekly rate of $5,132.80 ($64.16 x 80 hours).

The table below provides the biweekly premium pay caps for 2006 by locality pay area. These caps become effective as of the first day of the first pay period beginning on or after January 1, 2006.

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2005

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 for (1) GS-15, step 10 (including any applicable locality payment or special rate supplement), or (2) level V of the Executive Schedule. (See NOTE 1.) The biweekly rate is computed by (1) dividing the applicable scheduled 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 Washington, DC, the GS-15, step 10, scheduled annual locality rate of $135,136 divided by 2,087 hours yields an hourly rate of $64.75 and a biweekly rate of $5,180.00 ($64.75 x 80 hours). Similarly, the Executive Level V annual rate of $131,400 divided by 2,087 hours yields an hourly rate of $62.96 and a biweekly rate of $5,036.80 ($62.96 x 80 hours).

The table below provides the biweekly premium pay caps for 2005 by locality pay area. These caps become effective as of the first day of the first pay period beginning on or after January 1, 2005.

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2004

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 for (1) GS-15, step 10 (including any applicable special salary rate or locality rate), or (2) level V of the Executive Schedule. (See Note 1.) The biweekly rate is computed by (1) dividing the applicable scheduled 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 Los Angeles, the GS-15, step 10, scheduled annual locality rate of $136,466 divided by 2,087 hours yields an hourly rate of $65.39 and a biweekly rate of $5,231.20 ($65.39 x 80 hours). Similarly, the Executive Level V annual rate of $128,200 divided by 2,087 hours yields an hourly rate of $61.43 and a biweekly rate of $4,914.40 ($61.43 x 80 hours).

The table below provides the biweekly premium pay caps for 2004 by locality pay area. These caps are effective as of the first day of the first applicable pay period beginning on or after January 1, 2004.

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2003

(Revised to Reflect the Consolidated Appropriations Resolution, Public Law 108-7, February 20, 2003 )

Under 5 U.S.C. 5547(a) and 5 CFR 550.105, General Schedule 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 for (1) GS-15, step 10 (including any applicable locality rate or special salary rate), or (2) level V of the Executive Schedule. (See NOTES 1 and 2.) The biweekly rate is computed by (1) dividing the applicable scheduled 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 Los Angeles, the GS-15, step 10, scheduled annual locality rate of $130,284 divided by 2,087 hours yields an hourly rate of $62.43 and a biweekly rate of $4,994.40 ($62.43 x 80 hours). Similarly, the Executive Level V annual rate of $125,400 divided by 2,087 hours yields an hourly rate of $60.09 and a biweekly rate of $4,807.20 ($60.09 x 80 hours).

The table below provides the biweekly cap amounts for 2003 by locality pay area.  These caps are effective as of the first pay period beginning on or after January 1, 2003.

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The fact sheets below provide information on various topics concerning pay administration for Federal employees covered under title 5 of the United States Code and title 5 of the Code of Federal Regulations.

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