The retained rate refers to the specific percentage of an employee's basic pay that they are entitled to receive under certain legal provisions, specifically outlined in section 5363(b)(2) of the U.S. Code. This rate is typically applicable in federal employment contexts and can affect how salaries are determined for various positions.
The retained rate is primarily used in the context of federal employment law. It is relevant in cases involving salary determinations, particularly when an employee's pay is adjusted due to changes in their position or responsibilities. Understanding the retained rate is important for employees who may be transitioning between roles or facing pay adjustments, as it can impact their overall compensation.
Here are a couple of examples of abatement:
For instance, if a federal employee is promoted but their new position has a lower salary than their current pay, the retained rate allows them to keep their previous salary level for a specified time. This ensures they do not suffer an immediate financial loss due to the transition. (hypothetical example)
The primary statute governing the retained rate is 5 U.S.C. § 5363, which outlines the conditions under which an employee may retain a higher salary when moving to a new position. Other related regulations may be found in federal employment guidelines.
| Term | Definition | Difference |
|---|---|---|
| Base Pay | The standard salary an employee earns before any bonuses or adjustments. | The retained rate is a specific adjustment to base pay under certain conditions. |
| Salary Retention | The practice of keeping an employee's salary level despite changes in job role. | Retained rate is a legally defined percentage, while salary retention can be more general. |
If you believe the retained rate applies to your situation, consider reviewing your employment contract and any official communications regarding your pay. It may be beneficial to consult with your HR department for clarification. Additionally, users can explore US Legal Forms for templates that can help manage pay-related issues effectively. If your situation is complex, seeking professional legal advice is recommended.
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Only federal employees transitioning to new roles may qualify for the retained rate under specific conditions.