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OPM.gov / Policy / Pay & Leave / Pay Administration
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Critical Position Pay

Fact Sheet: Critical Position Pay

Under 5 U.S.C. 5377 and 5 CFR part 535, the U.S. Office of Personnel Management (OPM), in consultation with the Office of Management and Budget (OMB), may authorize an agency head to fix the rate of basic pay for one or more critical positions at a rate higher than the rate otherwise payable for the position.

Critical position pay (CPP) may be used for positions requiring expertise of an extremely high level in a scientific, technical, professional, or administrative field that is critical to the successful accomplishment of an important agency mission. The authority may be approved only to the extent necessary to recruit or retain an individual who is exceptionally well qualified for the position.

Final regulations published in 2026 streamlined the approval framework for CPP, removed non-statutory approval criteria, and aligned OPMʼs regulations with existing statutory and delegated authorities.

Eligibility

Categories of positions eligible for critical position pay include:

  • General Schedule (GS)
  • Senior-level (SL)
  • Senior Executive Service (SES) and the Federal Bureau of Investigation (FBI) and Drug Enforcement Administration (DEA) SES
  • Executive Schedule (EX)
  • Scientific and professional (ST)
  • FBI intelligence positions as determined by the Director of the FBI
  • Other positions designated by the Director of OPM at the request of an agency head

Not more than 800 positions may be covered Governmentwide at any one time, and not more than 30 active authorizations may be for positions otherwise paid rates of pay under the Executive Schedule.

Examples of positions that may be appropriate for CPP include senior cyber and information technology leaders, chief data officers, advanced research leaders, senior economists, and other highly specialized positions supporting mission-critical programs.

Approval Criteria

OPM's regulations in 5 CFR part 535 require agencies to submit written requests that include:

  • A description of the position, including the kinds of work required and the context in which it operates;
  • Documentation of the level of expertise required and an explanation of how any incumbent or candidate is exceptionally well qualified for the position;
  • Information on the agency's recruitment and retention experience for the position or similar positions;
  • An assessment of why other human resources flexibilities have not enabled or would not enable the agency to successfully fill the position with a desired candidate;
  • An explanation of why the position is critical to an important agency mission and the potential impact if the agency is unable to fill it with an exceptional candidate;
  • Market-based justification and other objective, evidence-based information supporting the requested pay rate; and
  • Other information required by 5 CFR 535.104(c) and (d).

Please see the Template for Requesting Use of the Critical Position Pay Authority.

Setting and Adjusting Critical Position Pay Rates

Subject to the limit approved by the Director of OPM in consultation with the Director of OMB, the head of an agency may initially set a critical pay rate not less than the rate of basic pay that would otherwise be payable for the position, but not greater than the rate for level I of the Executive Schedule (EX-I).

Rates above EX-I may be approved by the Director of OPM, in consultation with OMB, based on information and data justifying the higher rate, including market-based compensation information and recruitment or retention needs. OPM may establish a maximum rate limitation when approving requests above-EX-I.

Agencies may make subsequent adjustments to CPP rates each January, concurrent with Executive Schedule pay adjustments, subject to the requirements in 5 CFR 535.105(c).

Employees receiving critical pay are not eligible for locality pay or other similar basic pay supplements.

Relationship to Other Pay Flexibilities

Critical position pay may be used in conjunction with other pay flexibilities, including recruitment, relocation, and retention (3Rs) incentives under 5 U.S.C. 5753 and 5754, special salary rates under 5 U.S.C. 5305, student loan repayments under 5 U.S.C. 5379, and other GS pay-setting flexibilities. Critical position pay may also be used to recruit employees from other agencies and to retain employees who may otherwise leave for positions in other Federal agencies.

Critical position pay may be used in conjunction with other pay flexibilities, including recruitment, relocation, and retention (3Rs) incentives under 5 U.S.C. 5753 and 5754, special salary rates under 5 U.S.C. 5305, student loan repayments under 5 U.S.C. 5379, and other GS pay-setting flexibilities. Critical position pay may also be used to recruit employees from other agencies and to retain employees who may otherwise leave for positions in other Federal agencies.

Service Agreements

Agencies may require employees to sign a written service agreement governing future payments of critical position pay. OPM may also require a service agreement as a condition of approving a critical pay request and will communicate any such requirement in its determination letter.

Service agreements govern only future payments of critical position pay. Employees who do not complete a service period are not required to repay critical pay already received.

See the Model Critical Position Pay Service Agreement.

Rate of Basic Pay

A critical position pay rate is considered a rate of basic pay for most purposes, including retirement, life insurance, application of premium pay provisions, and the aggregate limitation on pay under 5 U.S.C. 5307, except for:

  • Application of any pay retention provisions under 5 U.S.C. 5363
  • Application of any adverse action provisions under 5 U.S.C. 7512; and
  • Application of the General Schedule pay administration rules in 5 CFR part 531, subpart B (such as the two-step promotion rule).

GS maximum payable rate rule: When an employee leaves a critical position pay position, the former critical pay rate may be used as the employeeʼs highest previous rate under the General Schedule maximum payable rate rule (5 CFR 531.221(a)(4)). This may allow pay to be set at a higher step rate in a subsequent GS position, up to but not exceeding step 10 of the grade.

Discontinuing and Terminating Critical Position Pay

Once critical position pay is granted, an agency may continue to use the authority for authorized positions as long as needed. An agency may discontinue critical position pay for a given position on its own initiative.

OPM will monitor the use of critical position pay authorities annually through agency reports required under 5 CFR 535.107 and will terminate the authority associated with a given position, after notifying the agency, if OPM determines in consultation with OMB that the authority is no longer needed.

If an employee's critical position pay is reduced or terminated, the employee's rate of basic pay will be set at the rate to which the employee would be entitled absent the critical pay authorization, unless the employee is eligible for a higher payable rate under the GS maximum payable rate rule and the agency elects to apply that rule.

Reporting

OPM must submit an annual report to Congress on the use of the critical position pay authority. Agencies must submit the following information to OPM by January 31 of each year covering their use of critical position pay authority for the previous calendar year:

  • The name, title, pay plan, and grade/level of each employee receiving a higher rate of basic pay under this authority;
  • The annual rate or rates of basic pay paid in the preceding calendar year to each such employee;
  • The beginning and ending dates of such rate(s) of basic pay, as applicable;
  • The rate or rates of basic pay that would have been paid but for the grant of critical position pay; and
  • Whether the authority is still needed for the critical position(s).

EHRI Reporting, Oversight, and Management of Authorizations

Because each CPP authorization counts against a finite Governmentwide limit (800 positions at any one time, of which not more than 30 may be otherwise paid under the Executive Schedule), OPM monitors whether authorizations remain necessary so capacity is available for agencies with current mission-critical needs.

OPM monitors use annually through the agency reports required under 5 CFR 535.107. OPM uses this information to meet the statutory reporting requirement and to identify authorizations that may be candidates for termination. If OPM determines, in consultation with OMB, that an authority is no longer needed, including where an agency holds an authorization it is not using, OPM will notify the agency and terminate the authority for that position (5 CFR 535.103(d)).

In addition to the annual submission under 5 CFR 535.107, agencies must accurately and timely record employees in critical positions in the Enterprise Human Resources Integration (EHRI) system. Critical position pay is captured in EHRI through Pay Rate Determinant (PRD) Code "C – Critical Position Pay," as specified in OPM's Data Standards. Accurate coding allows OPM to track active authorizations against the statutory ceilings, reconcile agency annual submissions, and identify authorizations no longer in use. Discrepancies between EHRI data and an agency's 5 CFR 535.107 submission may prompt OPM follow-up and, where an authorization appears unused, consideration for termination.


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