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United States Department of Agriculture
Animal and Plant Health Inspection Service

HRDG 4500 - Recruitment and Retention Incentives - Section J

Last Modified: Jun 2, 2020
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Subchapter 4500 - Recruitment and Retention Incentives
Section J - Supervisory Differentials

 


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What is a Supervisory Differential?

You may request approval to pay a supervisory differential to a General Schedule employee who has supervisory responsibility for one or more civilian employees not under the General Schedule if:

  • In the absence of such a differential, the subordinate civilian employees would be paid more than the supervisor, and
  • The supervisor's rate of basic pay does not exceed the rate of basic pay established for a GS-15 step 10.
Conditions

Because of the potential for frequent changes in a supervisor's eligibility for a differential, OPM encourages deciding officials to authorize the differentials ONLY WHEN THERE IS A SIGNIFICANT PAY DISPARITY between the supervisor's and the subordinate's continuing pay.

The differential is not considered part of basic pay, but will be paid in the same manner and at the same time as the supervisor's basic pay.

A supervisory differential must be reduced or terminated not later than 30 days after:

  • The continuing pay (excluding the supervisory differential) of the supervisor exceeds the continuing pay of the highest-paid subordinate,
  • The continuing pay (including the supervisory differential) of the supervisor exceeds that of the highest-paid subordinate by more than three percent, or
  • The subordinate leaves his/her position or receives a pay reduction.

See the Justification Criteria in this section for the types of pay comprising "continuing pay."
Justification Criteria

To justify the payment of a supervisory differential, you must follow these 3 steps:

STEP 1. Calculate the continuing pay of the GS/GM supervisor and that of the supervisor's highest-paid subordinate not under the General Schedule:

Supervisor's Annual Continuing Pay
Include:    
 

Basic Pay

$__________
 

Locality-Based Comparability Pay
or

$__________
 

Interim Geographic Adjustment

$__________
 

Premium Pay

$__________
 

Retained Pay

$__________
 

Staffing Differential

$__________
 

Retention Allowance

$__________
  Total Included:

$__________
Exclude:    
 

Sunday Pay

$__________
 

Holiday Pay

$__________
 

Night Differential

$__________
 

Hazard Pay Differential

$__________
  Total Excluded: $__________
Subordinate's Annual Continuing Pay
Include:    
  Basic Pay $__________
 

Locality-Based Comparability Pay

or

 $__________
  Interim Geographic Adjustment $__________
  Premium Pay $__________
  Total Included: $__________
Exclude:    
  Sunday Pay $__________
  Holiday Pay $__________
  Night Differential $__________
  Hazard Pay Differential $__________
  Retained Pay $__________
  Retention Allowance $__________
  Total Excluded: $__________

STEP 2. Compare the continuing pay of the supervisor with that of the subordinate:

Supervisor:

 

 

 

 

Total Included

-

Total Excluded

=

Continuing Pay (Sup.)

$__________

-

$__________

=

$__________

Subordinate:

 

 

 

 

Total Included

-

Total Excluded

=

Continuing Pay (Sup.)

$__________

-

$__________

=

$__________

STEP 3. If the subordinate's continuing pay is, in your judgment, significantly higher than the supervisor's, you may elect to continue the process to obtain approval to pay a supervisory differential to the supervisor.
Process for Paying Supervisory Differentials

You should follow this process to request to pay such a differential:

Step

If:

Then:

1

Requesting approval

Consult the Justification Criteria in this section.

2

Request is justified

Compile the required information listed in the Justification Criteria in this section and send through channels to the Director, HRD, who will forward the request to the approving authority.

3

Request is approved

Activate employee's pay by sending documentation of approval to the SPO.
Approval Authority Approval Authority is USDA, Office of Human Resources Management.
Records

In addition to the records requirements on the Records/Reports Charts, Section A, the Human Resources Division must keep records of the following information, about each supervisor who receives a supervisory differential and the supervisor's highest - paid subordinate not under the General Schedule:

  • Copy of request to OHRM, USDA, and any response(s) received, and
  • Continuing pay at the time approval of the differential was requested.
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