Title 5 — Government Organization and EmployeesRelease 119-73
§5373 Limitation on pay fixed by administrative action
Title 5 › Part PART III— - EMPLOYEES › Subpart Subpart D— - Pay and Allowances › Chapter CHAPTER 53— - PAY RATES AND SYSTEMS › Subchapter SUBCHAPTER VII— - MISCELLANEOUS PROVISIONS › § 5373
Summary
Agency and military department leaders who can set pay by administrative action must not set an employee’s annual basic pay higher than the rate for Executive Schedule Level IV. That limit does not change specific pay authorities created by certain other laws, such as various banking, farm credit, Federal Home Loan and Home Owners’ Loan laws, some energy and national security provisions, and the Commodity Exchange Act. The Secretary of Defense and service secretaries may set pay for civilian employees paid from nonappropriated funds, but those annual basic pay rates cannot exceed Executive Schedule Level III.
Full Legal Text
Title 5, §5373
Government Organization and Employees — Source: USLM XML via OLRC
(a)Except as provided in subsection (b) and by the Government Employees Salary Reform Act of 1964 (78 Stat. 400) and notwithstanding the provisions of other statutes, the head of an Executive agency or military department who is authorized to fix by administrative action the annual rate of basic pay for a position or employee may not fix the rate at more than the rate for level IV of the Executive Schedule. This section does not impair the authorities provided by—
(1)section 248, 482, 1766, and 1819 of title 12, section 206 of the Bank Conservation Act, section 2B(b) 11 See References in Text note below. and 21A(e)(4) 1 of the Federal Home Loan Bank Act, section 2A(i) 1 of the Home Owners’ Loan Act, and section 5.11 and 5.58 of the Farm Credit Act of 1971;
(3)section 403a–403c, 403e–403h, and 403j of title 50; 1 or
(4)22 So in original. Two pars. (4) have been enacted. section 4802.
(4)2 section 2(a)(7) of the Commodity Exchange Act (7 U.S.C. 2(a)(7)).
(b)Subsection (a) shall not affect the authority of the Secretary of Defense or the Secretary of a military department to fix the pay of a civilian employee paid from nonappropriated funds, except that the annual rate of basic pay (including any portion of such pay attributable to comparability with private-sector pay in a locality) of such an employee may not be fixed at a rate greater than the rate for level III of the Executive Schedule.
Legislative History
Notes & Related Subsidiaries
Historical and Revision Notes
DerivationU.S. CodeRevised Statutes andStatutes at Large 5 U.S.C. 2212.Aug. 14, 1964, Pub. L. 88–426, § 308, 78 Stat. 432.Oct. 6, 1964, Pub. L. 88–631, § 3(e), 78 Stat. 1008. The words “head of an Executive agency or military department” are coextensive with and substituted for “head of any executive department, independent establishment, or agency in the executive branch” because of the definitions in section 102 and 105. Standard changes are made to conform to the definitions applicable and the style of this title as outlined in the preface to the report.
Editorial Notes
References in Text
The Government Employees Salary Reform Act of 1964 (78 Stat. 400), referred to in subsec. (a), is Pub. L. 88–426, Aug. 14, 1964, 78 Stat. 400. For complete classification of this Act to the Code, see Tables. Level IV of the Executive Schedule, referred to in subsec. (a), is set out in section 5315 of this title. section 206 of the Bank Conservation Act, referred to in subsec. (a)(1), is classified to section 206 of Title 12, Banks and Banking. section 2B(b) and 21A(e)(4) of the Federal Home Loan Bank Act, referred to in subsec. (a)(1), were classified to former section 1422b(b) and 1441a(e)(4), respectively, of Title 12, Banks and Banking. Section 1422b of Title 12 was repealed by Pub. L. 110–289, div. A, title II, § 1204(1),
July 30, 2008, 122 Stat. 2786. Section 1441a of Title 12 was repealed by Pub. L. 111–203, title III, § 364(b),
July 21, 2010, 124 Stat. 1555. section 2A(i) of the Home Owners’ Loan Act, referred to in subsec. (a)(1), probably should be a reference to section 3(g) of the Home Owners’ Loan Act, act
June 13, 1933, ch. 64, as amended by Pub. L. 101–73, title III, § 301, Aug. 9, 1989, 103 Stat. 278, which was classified to section 1462a(g) of Title 12, Banks and Banking, prior to repeal by Pub. L. 111–203, title III, § 369(3)(B),
July 21, 2010, 124 Stat. 1558. section 5.11 and 5.58 of the Farm Credit Act of 1971, referred to in subsec. (a)(1), are classified to section 2245 and 2277a–7, respectively, of Title 12, Banks and Banking. section 403a–403c, 403e–403h, and 403j of title 50, referred to in subsec. (a)(3), were editorially reclassified to sections 3501 to 3503, 3505, 3323, 3506, 3507, 3508, and 3510, respectively, of Title 50, War and National Defense. Section 403e–1 of Title 50, included within the reference to section 403e–403h of Title 50, was enacted by Pub. L. 98–215, title IV, § 402, Dec. 9, 1983, 97 Stat. 1477, after subsec. (a)(3) was enacted, and subsequently editorially reclassified to section 3323 of Title 50. Level III of the Executive Schedule, referred to in subsec. (b), is set out in section 5314 of this title.
Amendments
2002—Subsec. (a)(2). Pub. L. 107–171, § 10702(c)(3)(A), which directed amendment of par. (2) by striking “or” at end, could not be executed because the word “or” did not appear at the end. See below. Pub. L. 107–123, § 8(d)(1)(C)(i), struck out “or” at end. Subsec. (a)(3). Pub. L. 107–171, § 10702(c)(3)(B), which directed substitution of “; or” for the period at the end, could not be executed because there was no period at the end. See below. Pub. L. 107–123, § 8(d)(1)(C)(ii), substituted “; or” for the period at the end. Subsec. (a)(4). Pub. L. 107–171, § 10702(c)(3)(C), added par. (4) relating to section 2(a)(7) of the Commodity Exchange Act. Pub. L. 107–123, § 8(d)(1)(C)(iii), added par. (4) relating to section 4802. 1999—Pub. L. 106–65 designated existing provisions as subsec. (a), substituted “(a) Except as provided in subsection (b) and” for “Except as provided”, and added subsec. (b). 1996—Pub. L. 104–201 redesignated pars. (2) to (4) as (1) to (3), respectively, and struck out former par. (1) which read as follows: “section 1202 of the Panama Canal Act of 1979;”. 1990—Pub. L. 101–509 substituted “rate for level IV of the Executive Schedule.” for “maximum rate for GS–18.” 1989—Par. (2). Pub. L. 101–73, § 1209, amended par. (2) generally. Prior to amendment, par. (2) read as follows: “section 248, 481, 1437, 1439, and 1819 of title 12;”. Pub. L. 101–73, § 742(b), inserted references to section 1437 and 1439 of title 12. 1979—Par. (1). Pub. L. 96–70 substituted “section 1202 of the Panama Canal Act of 1979” for “section 121 of title 2, Canal Zone Code (76A Stat. 15)”.
Statutory Notes and Related Subsidiaries
Effective Date
of 2002 AmendmentAmendment by Pub. L. 107–123 effective Oct. 1, 2001, see section 11 of Pub. L. 107–123, set out as a note under section 78ee of Title 15, Commerce and Trade.
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 1979 AmendmentAmendment by Pub. L. 96–70 effective Oct. 1, 1979, see section 3304 of Pub. L. 96–70, set out as an
Effective Date
note under section 3601 of Title 22, Foreign Relations and Intercourse.
Reference
Citations & Metadata
Citation
5 U.S.C. § 5373
Title 5 — Government Organization and Employees
Last Updated
Apr 6, 2026
Release point: 119-73