White House Increases Bonus Spending Cap to 1.5 Percent For Federal Employees

Government Executive: Federal agencies will be able to give their employees slightly larger bonuses in fiscal 2017 after a six-year freeze on performance awards, according to new guidance from the Obama administration.

The aggregate spending cap on agency performance and individual contribution awards for non-Senior Executive Service and non-senior level employees will increase from about 1 percent – the level it has been at since 2010 – to 1.5 percent for bonuses paid in fiscal 2017. Agencies will be able to spend up to 1.5 percent of the aggregate (fiscal 2016) salaries of all non-SES/SL/ST employees for these bonuses in fiscal 2017. The change applies to employees in the General Schedule, wage grade, and other non-senior level workers.

Read article