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Federal
agencies have discretionary authority to provide additional compensation
to meet recruitment, relocation, and retention needs.
- Recruitment and Relocation Bonuses:
Agencies may pay as a lump sum recruitment bonuses for new employees
and relocation bonuses for current employees who are moving to a different
commuting area of up to 25 percent of basic pay, when they would encounter
difficulty in filling the position in the absence of a bonus. To receive
these bonuses, an employee must sign an agreement to complete a period
of service with the agency–at least 6 months in the case of a recruitment
bonus. These payments are not considered part of basic pay.
- Retention Payments:
Agencies may pay a retention allowance (paid bi-weekly) of up to 25
percent of basic pay to an employee, if the unusually high or unique
qualifications of the employee or a special need of the agency for the
employee's services makes it easier to retain the employee; and the
agency determines that without the allowances the employee would be
likely to leave the Federal Government. These payments are not considered
part of basic pay.
- Other Flexibilities:
Agencies may also pay pre-employment interview expenses and some travel
and moving costs for new employees. Agencies may advance pay for new
employees up to two pay periods (four weeks).
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