Title 5 — Government Organization and EmployeesRelease 119-73
§4502 General provisions
Title 5 › Part PART III— - EMPLOYEES › Subpart Subpart C— - Employee Performance › Chapter CHAPTER 45— - INCENTIVE AWARDS › Subchapter SUBCHAPTER I— - AWARDS FOR SUPERIOR ACCOMPLISHMENTS › § 4502
Summary
Cash awards to federal employees normally cannot be more than $10,000. If an agency head certifies that an idea or achievement is highly exceptional, the Office of Personnel Management (OPM) can approve awards up to $25,000. Awards are extra pay and do not give the employee, their heirs, or assigns the right to make further claims if the Government uses the idea. Agencies pay awards and honoraria from the funds of the activity that benefits. OPM may allow paid time off as an award. The Secretary of Defense can approve awards over $10,000 up to $25,000 without OPM certification.
Full Legal Text
Title 5, §4502
Government Organization and Employees — Source: USLM XML via OLRC
(a)Except as provided by subsection (b) of this section, a cash award under this subchapter may not exceed $10,000.
(b)When the head of an agency certifies to the Office of Personnel Management that the suggestion, invention, superior accomplishment, or other meritorious effort for which the award is proposed is highly exceptional and unusually outstanding, a cash award in excess of $10,000 but not in excess of $25,000 may be granted with the approval of the Office.
(c)A cash award under this subchapter is in addition to the regular pay of the recipient. Acceptance of a cash award under this subchapter constitutes an agreement that the use by the Government of an idea, method, or device for which the award is made does not form the basis of a further claim of any nature against the Government by the employee, his heirs, or assigns.
(d)A cash award to, and expense for the honorary recognition of, an employee may be paid from the fund or appropriation available to the activity primarily benefiting or the various activities benefiting. The head of the agency concerned determines the amount to be paid by each activity for an agency award under section 4503 of this title. The President determines the amount to be paid by each activity for a Presidential award under section 4504 of this title.
(e)The Office of Personnel Management may by regulation permit agencies to grant employees time off from duty, without loss of pay or charge to leave, as an award in recognition of superior accomplishment or other personal effort that contributes to the quality, efficiency, or economy of Government operations.
(f)The Secretary of Defense may grant a cash award under subsection (b) of this section without regard to the requirements for certification and approval provided in that subsection.
Legislative History
Notes & Related Subsidiaries
Historical and Revision Notes
DerivationU.S. CodeRevised Statutes andStatutes at Large 5 U.S.C. 2123(d), (e), (g).Sept. 1, 1954, ch. 1208, § 304(d), (e), (g), 68 Stat. 1113. In subsections (a) and (b), the words “cash award” are substituted for “monetary award” and “such award” to conform to the remainder of the chapter. In subsection (c), the word “Government” is substituted for “Government of the United States or the government of the District of Columbia” in view of the definition of “Government” in section 4501. Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.
Editorial Notes
Amendments
2000—Subsec. (f). Pub. L. 106–398 added subsec. (f). 1993—Subsec. (e). Pub. L. 103–89 struck out par. (2) designation and struck out par. (1) which read as follows: “Notwithstanding section 4501(2), for the purpose of this subsection, ‘employee’ includes an employee covered by the performance management and recognition system established under chapter 54.” 1990—Subsec. (e). Pub. L. 101–509 added subsec. (e). 1981—Subsecs. (a), (c). Pub. L. 97–35 substituted “subchapter” for “chapter”. 1978—Subsec. (a). Pub. L. 95–454, § 503(b), substituted “$10,000” for “$5,000”. Subsec. (b). Pub. L. 95–454, § 503(c), substituted “Office of Personnel Management” for “Civil Service Commission”, “$10,000” for “$5,000”, and “Office” for “Commission”.
Statutory Notes and Related Subsidiaries
Effective Date
of 1993 AmendmentAmendment by Pub. L. 103–89 effective Nov. 1, 1993, see section 3(c) of Pub. L. 103–89, set out as a note under section 3372 of this title.
Effective Date
of 1990 AmendmentAmendment by Pub. L. 101–509 effective on such date as the President shall determine, but not earlier than 90 days, and not later than 180 days, after Nov. 5, 1990, see section 529 [title III, § 305] of Pub. L. 101–509, set out as a note under section 5301 of this title.
Effective Date
of 1981 AmendmentAmendment by Pub. L. 97–35 effective Oct. 1, 1981, see section 1703(c) of Pub. L. 97–35, set out as a note under section 4501 of this title.
Effective Date
of 1978 Amendment Pub. L. 95–454, title V, § 504(a), Oct. 13, 1978, 92 Stat. 1184, provided that amendment by Pub. L. 95–454 was effective on first day of first applicable pay period which began on or after Oct. 1, 1981, except it could take effect with respect to any category or categories of positions before such day to extent prescribed by Director of Office of Personnel Management.
Executive Documents
Delegation of Functions Functions of President under former section 2123(e) [now subsec. (d)] of this section delegated to Director of Office of Personnel Management, see section 2 of Ex. Ord. No. 11228, June 14, 1965, 30 F.R. 7739, set out as a note under section 301 of Title 3, The President.
Reference
Citations & Metadata
Citation
5 U.S.C. § 4502
Title 5 — Government Organization and Employees
Last Updated
Apr 6, 2026
Release point: 119-73