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OPM.gov / Policy / Pay & Leave / Pay Administration
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Back Pay

Back Pay

Description

Title 5, United States Code, authorizes the payment of back pay, interest, and reasonable attorney fees for the purpose of making an employee financially whole (to the extent possible), when, on the basis of a timely appeal or an administrative determination (including a decision relating to an unfair labor practice or a grievance), the employee is found by an appropriate authority to have been affected by an unjustified or unwarranted personnel action that resulted in the withdrawal, reduction, or denial of all or part of the pay, allowances, and differentials otherwise due to the employee.

See 5 U.S.C. 5596 and 5 CFR part 550, subpart H, for additional information on the back pay authority, including:

  • Applicability and coverage
  • Determining entitlement to back pay
  • Back pay computations
  • Interest computations
  • Payment of reasonable attorney fees

Interest Rates Used for Computation of Back Pay

Information on the interest rates used for the computation of back pay is available at Interest Rates Used for Computation of Back Pay.

Back Pay Interest Calculator

A calculator that may be used to estimate the interest due on a back pay award is available. 

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