# Pay & Leave Pay Administration

## Fact Sheet: How to Compute Rates of Pay

### Background

Hourly and biweekly rates for General Schedule employees are computed under 5 U.S.C. 5504.  Premium pay is computed under 5 U.S.C. chapter 55, subchapter V, and 5 CFR part 550, subpart A.  The rates are computed based on an employee’s annual rate of basic pay, including any applicable special rate supplement or locality payment.  (Note:  Overtime pay for nonexempt employees is computed under the Fair Labor Standards Act, subject to some special rules for Federal employees.  See 5 CFR part 551.  In addition, firefighters covered by 5 U.S.C. 5545b are subject to special rules for computing hourly rates and overtime pay.  See 5 CFR part 550, subpart M.)

### Rules for Rounding

Rates must be rounded to the nearest cent, counting one-half cent and over as the next higher cent (e.g., round \$18.845 to \$18.85).

### Procedure

Follow the rules below to compute rates of pay.  (Note:  The examples below are based on annual rates that have been increased by a locality pay percentage of 24.22%. See 2014 - DCB)

1. Hourly Rate.

Divide annual rate of basic pay by 2,087 hours.

GS-9, step 1 = \$ 52,146.
\$ 52,146 / 2,087 hours = \$ 24.99.

2. Biweekly Rate.

Multiply hourly rate of basic pay by 80 hours.

\$ 24.99 x 80 hours = \$ 1,999.20.

3. Title 5 Overtime Hourly Rate

1. if employee's rate of basic pay is less than rate of basic pay for GS-10, step 1

Multiply hourly rate of basic pay by 1.5.

\$ 24.99 x 1.5 = \$ 37.49.

2. if employee's rate of basic pay is more than rate of basic pay for GS-10, step 1

Use the greater of (1) the GS-10, step 1, hourly rate of basic pay multiplied by 1.5 OR (2) the employee’s hourly rate of basic pay.  (5 CFR 550.113).

GS-10, step 1 = \$ 57,426.
\$ 57,426 / 2,087 hours = \$ 27.52.
\$ 27.52 x 1.5 = \$ 41.28.

GS-14, step 1 = \$ 106,263.
\$ 106,263 / 2,087 hours = \$ 50.92.

In this example, the employee’s hourly rate of basic pay (\$50.92) is greater than the GS-10, step 1, hourly rate of basic pay multiplied by 1.5 (\$41.28).  Therefore, the employee’s title 5 overtime hourly rate is equal to his or her hourly rate of basic pay.

4. Night Pay.

Multiply hourly rate of basic pay by 10%.  (5 CFR 550.121)

GS-9, step 1 = \$ 52,146.
\$ 52,146 / 2,087 hours = \$ 24.99.
\$ 24.99 x 0.10 = \$ 2.50.