Retention Incentives

An employee may be paid a retention incentive upon written determination by the authorizing official that the unusually high or unique qualifications of the employee or a special need of the organization for the employee's services makes it essential to retain the employee, and that absent a retention incentive, the employee would be likely to leave Federal service. The determination must document the factors used as a basis for the determination and for determining the amount of the incentive, up to 25% of basic pay, to include a special or locality rate. Organizations can target groups of employees, however, a group retention incentive over 10% must be approved by the Office of Personnel Management.

The incentive is paid on a pay period basis and must be reviewed at least every 12 months.

Content last reviewed: 5/30/2006-RJM