Code of Federal Regulations (Last Updated: May 6, 2024) |
Title 5 - Administrative Personnel |
Chapter XCIX - Military Compensation and Retirement Modernization Commission |
Part 9901 - Disclosure of Records and Information |
Subpart C - Pay and Pay Administration |
Performance-Based Pay |
§ 9901.343 - Pay reduction based on unacceptable performance and/or conduct.
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An employee's rate of base salary may be reduced based on a determination of unacceptable performance, conduct, or both after applying applicable adverse action procedures. Such a reduction will be at least 5 percent of base salary and may not exceed 10 percent of base salary. However, a reduction in base salary may be less than 5 percent to prevent the employee's base salary from falling below the minimum rate of the employee's pay band and may be more than 10 percent if a larger reduction is needed to place the employee at the maximum rate of the lower band. (See also §§9901.353(f) and 9901.355(b)(4).) An employee's rate of base salary may not be reduced more than once in a 12-month period based on unacceptable performance, conduct, or both.