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The following table compares the maximum recruitment or relocation incentive amounts that would be payable to an employee for service periods of various lengths. The maximum incentive amount is calculated by multiplying the employee's annual rate of basic pay (as in effect at the beginning of the service period) × maximum incentive percentage × length of the service period. The maximum recruitment or relocation incentive an agency may authorize is 25 percent or, with OPM approval based on a critical agency need, 50 percent. In no event may a recruitment or relocation incentive exceed 100 percent of the employee's rate of basic pay.
The maximum recruitment and relocation incentive amounts shown in the table below are based on a GS-13, step 1, employee in Washington, DC, in 2005, with an annual rate of basic pay of $74,782 at the beginning of the service period, including locality pay. Note that the amounts shown are the maximum incentive amounts an agency may pay for the stated period of service. (The maximum incentive amount under the 50 percent cap is shown in italics.) The agency may always choose to pay a lower incentive rate for the same period of service. (See 5 CFR 575.109 and 575.209.)
* The total amount of a recruitment or relocation incentive may not exceed 100 percent of the employee's rate of basic pay, even when OPM approves an incentive amount that exceeds 25 percent. To determine the maximum incentive percentage for service periods greater than 2 years when OPM approves an incentive amount that exceeds 25 percent, divide 100 percent by the number of years in the service period.