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2012 BIWEEKLY CAPS ON PREMIUM PAY
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.
| 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) | ||
| Alaska | 24.69% | $5,960.80 | $154,980.80 |
| Atlanta-Sandy Springs-Gainesville, GA-AL | 19.29% | 5,922.40 | 153,982.40 |
| Boston-Worcester-Manchester, MA-NH-RI-ME | 24.80% | 5,960.80 | 154,980.80 |
| Buffalo-Niagara-Cattaraugus, NY | 16.98% | 5,808.00 | 151,008.00 |
| Chicago-Naperville-Michigan City, IL-IN-WI | 25.10% | 5,960.80 | 154,980.80 |
| Cincinnati-Middletown-Wilmington, OH-KY-IN | 18.55% | 5,885.60 | 153,025.60 |
| Cleveland-Akron-Elyria, OH | 18.68% | 5,892.00 | 153,192.00 |
| Columbus-Marion-Chillicothe, OH | 17.16% | 5,816.80 | 151,236.80 |
| Dallas-Fort Worth, TX | 20.67% | 5,960.80 | 154,980.80 |
| Dayton-Springfield-Greenville, OH | 16.24% | 5,771.20 | 150,051.20 |
| Denver-Aurora-Boulder, CO | 22.52% | 5,960.80 | 154,980.80 |
| Detroit-Warren-Flint, MI | 24.09% | 5,960.80 | 154,980.80 |
| Hartford-West Hartford-Willimantic, CT-MA | 25.82% | 5,960.80 | 154,980.80 |
| Hawaii | 16.51% | 5,784.00 | 150,384.00 |
| Houston-Baytown-Huntsville, TX | 28.71% | 5,960.80 | 154,980.80 |
| Huntsville-Decatur, AL | 16.02% | 5,760.00 | 149,760.00 |
| Indianapolis-Anderson-Columbus, IN | 14.68% | 5,693.60 | 148,033.60 |
| Los Angeles-Long Beach-Riverside, CA | 27.16% | 5,960.80 | 154,980.80 |
| Miami-Fort Lauderdale-Pompano Beach, FL | 20.79% | 5,960.80 | 154,980.80 |
| Milwaukee-Racine-Waukesha, WI | 18.10% | 5,863.20 | 152,443.20 |
| Minneapolis-St. Paul-St. Cloud, MN-WI | 20.96% | 5,960.80 | 154,980.80 |
| New York-Newark-Bridgeport, NY-NJ-CT-PA | 28.72% | 5,960.80 | 154,980.80 |
| Philadelphia-Camden-Vineland, PA-NJ-DE-MD | 21.79% | 5,960.80 | 154,980.80 |
| Phoenix-Mesa-Scottsdale, AZ | 16.76% | 5,796.80 | 150,716.80 |
| Pittsburgh-New Castle, PA | 16.37% | 5,777.60 | 150,217.60 |
| Portland-Vancouver-Beaverton, OR-WA | 20.35% | 5,960.80 | 154,980.80 |
| Raleigh-Durham-Cary, NC | 17.64% | 5,840.80 | 151,860.80 |
| Richmond, VA | 16.47% | 5,782.40 | 150,342.40 |
| Sacramento-Arden-Arcade-Yuba City, CA-NV | 22.20% | 5,960.80 | 154,980.80 |
| San Diego-Carlsbad-San Marcos, CA | 24.19% | 5,960.80 | 154,980.80 |
| San Jose-San Francisco-Oakland, CA | 35.15% | 5,960.80 | 154,980.80 |
| Seattle-Tacoma-Olympia, WA | 21.81% | 5,960.80 | 154,980.80 |
| Washington-Baltimore-Northern Virginia, DC-MD-VA-WV-PA | 24.22% | 5,960.80 | 154,980.80 |
| Rest of United States | 14.16% | 5,668.00 | 147,368.00 |
| Not in a Locality Pay Area | NA | 5,584.80 | 145,204.80 |
NOTES
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.
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See http://www.opm.gov/oca/12tables/locdef.asp for definitions of locality pay areas
Locality rates for GS employees are capped at the rate for level IV of the Executive Schedule (EX-IV), which is $155,500 in 2012. (See Note 4 for an explanation of why annual premium pay cap is different than the annual rate shown in applicable salary schedules.) Certain special rate employees may have a higher biweekly premium pay cap at GS-15, step 10, than that shown in the table above.
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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 2012. The caps do not match the annual rates shown on applicable salary schedules. For example, the GS-15, step 10, annual locality rate in Washington, DC, is $155,500 (EX-IV cap), but the corresponding annual premium pay cap based on 26 payments is $154,980.80. Similarly, the EX V annual rate is $145,700, but the corresponding annual premium pay cap based on 26 payments is $145,204.80. However, some employees may have 27 biweekly salary payments in 2012. For these employees, the applicable annual cap is equal to the applicable biweekly rate multiplied by 27.
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We will notify agencies separately about any reauthorization for 2012 of the premium pay cap that may be applied to certain employees who perform work while in certain overseas locations. See CPM 2011-03 for information regarding this authority for calendar year 2011.
No exemptions have been granted to waive the annual premium pay limitation under section 5547 for any emergency situations, except as provided in note 5, above.
When the biweekly (or annual, if applicable) cap on premium pay is reached, employees may still be ordered to perform overtime work without receiving further compensation. (See Comptroller General Opinions: B-178117, May 1, 1973; B-229089, December 28, 1988; and B-240200, December 20, 1990.)
Historical Pages –– BIWEEKLY CAPS ON PREMIUM PAY
This page can be found on the web at the following url: http://www.opm.gov/oca/pay/HTML/12GSCap.asp
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