Title 5 › PART III — EMPLOYEES › Subpart D — Pay and Allowances › CHAPTER 54 — HUMAN CAPITAL PERFORMANCE FUND › § 5404
The Office may allow agencies to give human capital performance payments to individual employees for exceptional work that helps the agency meet its mission. No more than 15 percent of an agency’s average total civilian permanent workforce from the previous fiscal year can get these payments in any year. Each payment can be no more than 10 percent of the employee’s basic pay. The sum of an employee’s basic pay (including any locality pay) plus the human capital performance payment cannot be higher than the basic pay rate for Executive Level IV in any year. These payments are in addition to any yearly pay raise and any locality-based pay. Money from the Human Capital Performance Fund cannot be used to create new jobs, pay other performance-related awards, or pay recruitment or retention incentives under sections 5753 and 5754. Agencies may use the Fund to make initial payments when money is available. After the first year, agencies must pay continuing human capital performance payments from their own salary and expense funds.
Full Legal Text
Government Organization and Employees, Source: USLM XML via OLRC
Legislative History
Reference
Citation
5 U.S.C. § 5404
Title 5, Government Organization and Employees
Last Updated
Aug 21, 2026
Release point: 119-102