How large can a 3R incentive be?

Recruitment and relocation incentives generally may not exceed 25 percent of the employee’s annual rate of basic pay in effect at the beginning of the service period multiplied by the number of years (including fractions of a year) in the service period, although in cases of critical need it can be 50 percent. There is a cap of 100 percent of pay at starting point.

A retention incentive typically may not exceed 25 percent, although in cases of critical need it can be 50 percent. Retention incentives may be paid in biweekly installments when no service agreement is required. If a service period is required, they may be paid in installments after the completion of specified periods or in a single lump sum after completion of the full period.



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