CFR > Title 5 - Administrative Personnel > CHAPTER XCIX—DEPARTMENT OF DEFENSE HUMAN RESOURCES MANAGEMENT AND LABOR RELATIONS SYSTEMS (DEPARTMENT OF DEFENSE—OFFICE OF PERSONNEL MANAGEMENT) > PART 9901—DEPARTMENT OF DEFENSE NATIONAL SECURITY PERSONNEL SYSTEM (NSPS) > SUBPART C—Pay and Pay Administration (§9901.301 to §9901.372) > 9901.305—Rate of pay.

9901.305—Rate of pay.

(a) The term “rate of pay” in 5 U.S.C. 9902(e)(9) means—
(1) An individual employee's base salary rate, local market supplement rate, and overtime and other premium pay rates (including compensatory time off); and
(2) The rates comprising the structure of the pay system that govern the setting and adjusting of the individual employee rates identified in paragraph (a)(1) of this section, including, but not limited to—
(i) Band rate range minimum and maximum rates;
(ii) Control points within a band rate range;
(iii) Local market supplement rates;
(iv) Maximum rates of base salary and adjusted salary;
(v) Premium pay rates; and
(vi) The percentage rate of total base salary payroll constituting the portion of a pay pool applied to provide performance-based increases in employees' base salary rates.
(b) For the purpose of 5 U.S.C. 9902(e)(9), the establishment or adjustment of a rate of pay includes the establishment or adjustment of the amount or level of the rate and of the eligibility requirements associated with the type and level of pay in question. Illustrative examples of actions that establish or adjust a rate of pay include, but are not limited to, the following:
(1) Establishing the starting base salary rate for a newly hired employee;
(2) Establishing a retained rate for an employee under § 9901.356(e) ;
(3) Adjusting an employee's base salary rate through various pay actions, including general salary increases, targeted general salary increases, performance pay increases, extraordinary performance recognition increases, organizational or team achievement recognition increases, pay reductions for unacceptable performance or conduct, reassignment increases and decreases, promotion increases, within-grade increase adjustments, and accelerated compensation for developmental positions (ACDP) increases;
(4) Establishing or adjusting the minimum or maximum rate of a band rate range or control points within that range;
(5) Establishing or adjusting the percentage amount of a targeted local market supplement, as well as the geographic area and other coverage requirements associated with that supplement;
(6) Establishing a higher premium pay limit under § 9901.362(a)(2) ;
(7) Establishing an overtime rate equal to an employee's adjusted salary rate under § 9901.362(b)(6)(i) ;
(8) Establishing a new hazardous duty premium rate under 9901.362(i)(3); and
(9) Establishing the percentage rate of total base salary payroll constituting the portion of a pay pool applied to provide performance-based increases in employees' base salary rates.