Title 37Pay and Allowances of the Uniformed ServicesRelease 119-73

§306 Special pay: officers holding positions of unusual responsibility and of critical nature

Title 37 › Chapter CHAPTER 5— - SPECIAL AND INCENTIVE PAYS › Subchapter SUBCHAPTER I— - EXISTING SPECIAL PAY, INCENTIVE PAY, AND BONUS AUTHORITIES › § 306

Last updated Apr 6, 2026|Official source

Summary

A Service Secretary can pick certain jobs as unusually important and pay extra money to officers who do those jobs. The extra pay is added to any other pay they get. Monthly amounts are: O‑6 $150, O‑5 $100, O‑4 and below $50. It applies to officers in pay grade O‑6 or lower who get basic pay under section 204 or compensation under section 206. If someone paid under section 206 gets this pay, it is given daily at 1/30 of the monthly rate for each day worked in the job. The Secretary sets the rules for who gets this pay and can stop it if needed. No more than 5% of officers in each O‑3 and below, and no more than 10% in each O‑4, O‑5, or O‑6, may receive it on active duty. The same percentage limits apply to Selected Reserve members not on active duty who are paid daily. The Secretary of Defense issues rules for the military, and the Secretary of Homeland Security does so for the Coast Guard when it is not operating with the Navy. People already eligible for special pay under sections 302, 302a, 302b, or 303 are not covered.

Full Legal Text

Title 37, §306

Pay and Allowances of the Uniformed Services — Source: USLM XML via OLRC

(a)(1)The Secretary concerned may designate positions of unusual responsibility which are of a critical nature to an armed force under his jurisdiction and may pay special pay, in addition to other pay prescribed by law, to an officer of an armed force described in paragraph (2) who is performing the duties of such a position, at the following monthly rates: Pay GradeMonthly Rate O–6$150 O–5100 O–4 and below50
(2)An officer of the armed forces referred to in paragraph (1) is an officer who is entitled to the basic pay under section 204 of this title, or the compensation under section 206 of this title, of pay grade O–6 or below.
(b)If an officer entitled to compensation under section 206 of this title is paid special pay under subsection (a) for the performance of duties in a position designated under such subsection, the special pay shall be paid at the rate of 1⁄30 of the monthly rate authorized by such subsection for each day of the performance of duties in the designated position.
(c)The Secretary concerned shall prescribe the criteria and circumstances under which officers of an armed force under his jurisdiction are eligible for special pay under this section and, when he considers it necessary, may abolish that special pay.
(d)(1)Not more than 5 percent of the number of officers on active duty (other than for training or mobilization in support of a contingency operation) in an armed force in each of the pay grades O–3 and below, and not more than 10 percent of the number of officers on active duty in an armed force in pay grade O–4, O–5, or O–6, may be paid special pay under this section.
(2)Of the number of officers in the Selected Reserve of the Ready Reserve of an armed force who are not on active duty (other than for training or mobilization in support of a contingency operation), not more than 5 percent of the number of such officers in each of the pay grades O–3 and below, and not more than 10 percent of the number of such officers in pay grade O–4, O–5, or O–6, may be paid special pay under subsection (b).
(e)This section shall be administered under regulations prescribed by the Secretary of Defense for the armed forces under his jurisdiction, and by the Secretary of Homeland Security for the Coast Guard when the Coast Guard is not operating as a service in the Navy.
(f)This section does not apply to a person who is entitled to special pay under section 302, 302a, 302b, or 303 of this title.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised sectionSource (U.S. Code)Source (Statutes at Large) 306(a)37:241(a) (less last sentence).Oct. 12, 1949, ch. 681, § 210; added May 20, 1958, Pub. L. 85–422, § 1(8), 72 Stat. 126. 306(b)37:241(a) (last sentence). 306(c)37:241(b). 306(d)37:241(c). 306(e)37:241(d). 306(f)37:241(e). In subsection (a), the words “an armed force under his jurisdiction” are substituted for the words “the service concerned” in the first sentence of section 241(a) of existing title 37 to conform to the last sentence of that subsection. In subsection (c), the words “(other than for training)” are inserted for clarity, since members on duty for training only are not included in computing strength authorizations.

Editorial Notes

Amendments

2003—Subsec. (a). Pub. L. 108–136, § 616(a)(1), designated existing provisions as par. (1), substituted “described in paragraph (2)” for “who is entitled to the basic pay of pay grade O–6 or below and”, and added par. (2). Subsec. (b). Pub. L. 108–136, § 616(a)(3), added subsec. (b). Former subsec. (b) redesignated (c). Subsec. (c). Pub. L. 108–136, § 616(a)(2), redesignated subsec. (b) as (c). Former subsec. (c) redesignated (d). Subsec. (d). Pub. L. 108–136, § 616(b), designated existing provisions as par. (1), inserted “or mobilization in support of a contingency operation” after “training”, and added par. (2). Pub. L. 108–136, § 616(a)(2), redesignated subsec. (c) as (d). Former subsec. (d) redesignated (e). Subsecs. (e), (f). Pub. L. 108–136, § 616(a)(2), redesignated subsecs. (d) and (e) as (e) and (f), respectively. 2002—Subsec. (d). Pub. L. 107–296 substituted “of Homeland Security” for “of Transportation”. 1992—Subsec. (a). Pub. L. 102–587, § 5205(a), substituted “of pay grade O–6 or below” for “of pay grade O–3, O–4, O–5, or O–6” in text and amended table by substituting “O–4 and below” for “O–4” and striking out line providing monthly rate of $50 for pay grade O–3. Subsec. (c). Pub. L. 102–587, § 5205(b), substituted “in each of the pay grades O–3 and below,” for “in pay grade O–3,”. 1990—Subsec. (f). Pub. L. 101–510 struck out subsec. (f) which read as follows: “The Secretary of Defense shall report to Congress by March 1 of each year following a calendar year in which special pay is disbursed under this section. Negative reports need not be submitted.” 1982—Subsec. (f). Pub. L. 97–322 struck out last sentence providing that the Secretary of Transportation shall make a similar report for the Coast Guard when the Coast Guard is not operating as a service in the Navy. 1980—Subsec. (e). Pub. L. 96–284 made section inapplicable to a person entitled to special pay under section 302a or 302b of this title. Subsec. (f). Pub. L. 96–470 substituted provision requiring the Secretary of Defense to report by Mar. 1 of each year following a calendar year in which special pay is disbursed under this section and providing that negative reports need not be submitted for provision requiring the Secretary of Defense to report by Mar. 1 of each year on the administration of this section within each military department during the preceding calendar year. 1968—Subsecs. (d), (f). Pub. L. 90–623 substituted “Secretary of Transportation” for “Secretary of the Treasury”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2002 AmendmentAmendment by Pub. L. 107–296 effective on the date of transfer of the Coast Guard to the Department of Homeland Security, see section 1704(g) of Pub. L. 107–296, set out as a note under section 101 of Title 10, Armed Forces.

Effective Date

of 1968 AmendmentAmendment by Pub. L. 90–623 intended to restate without substantive change the law in effect on October 22, 1968, see section 6 of Pub. L. 90–623, set out as a note under section 5334 of Title 5, Government Organization and Employees.

Reference

Citations & Metadata

Citation

37 U.S.C. § 306

Title 37Pay and Allowances of the Uniformed Services

Last Updated

Apr 6, 2026

Release point: 119-73