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New Federal Employee Pay System: Performance-Based Compensation

This act introduces a five-year pilot program that changes how some federal employees are paid. Their salaries will depend on their performance, aiming to increase efficiency and job satisfaction. Citizens may experience improved public services as employees are motivated to perform better.
Key points
Salaries for certain federal employees (GS-11 to GS-15 levels and senior-level positions) will be linked to their work performance.
Employees who significantly exceed expectations may receive a salary increase of up to 10%, while those who do not meet expectations may have their salary reduced by 10%.
The program aims to improve productivity, quality, and timeliness of public services, potentially leading to better service for citizens.
Federal agencies will be required to regularly evaluate employees and provide training to help them meet their goals.
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Additional Information
Print number: 118_HR_10411
Sponsor: Rep. Tenney, Claudia [R-NY-24]
Process start date: 2024-12-16