---
kind: "section"
citation: "37 U.S.C. § 306"
title: "37"
title_heading: "Pay and Allowances of the Uniformed Services"
number: "306"
heading: "Special pay: officers holding positions of unusual responsibility and of critical nature"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/37/306"
units:
  - "Chapter 5 — Special and Incentive Pays"
  - "Subchapter I — Existing Special Pay, Incentive Pay, and Bonus Authorities"
---

# §306. Special pay: officers holding positions of unusual responsibility and of critical nature

- (a)
  - (1) The [Secretary concerned](/usc/37/101.md?p=5) may designate positions of unusual responsibility which are of a critical nature to an armed force under his jurisdiction and may [pay](/usc/37/101.md?p=21) special [pay](/usc/37/101.md?p=21), in addition to other [pay](/usc/37/101.md?p=21) prescribed by law, to an [officer](/usc/37/101.md?p=11) of an armed force described in [paragraph (2)](#a-2) who is performing the duties of such a position, at the following monthly rates:

    | [Pay](/usc/37/101.md?p=21) [Grade](/usc/37/101.md?p=15) | Monthly Rate |
    | --- | --- |
    | O–6 | $150 |
    | O–5 | 100 |
    | O–4 and below | 50 |

  - (2) An [officer](/usc/37/101.md?p=11) of the [armed forces](/usc/37/101.md?p=4) referred to in [paragraph (1)](#a-1) is an [officer](/usc/37/101.md?p=11) who is entitled to the basic [pay](/usc/37/101.md?p=21) under [section 204 of this title](/usc/37/204.md), or the compensation under [section 206 of this title](/usc/37/206.md), of [pay](/usc/37/101.md?p=21) [grade](/usc/37/101.md?p=15) O–6 or below.
- (b) If an [officer](/usc/37/101.md?p=11) entitled to compensation under [section 206 of this title](/usc/37/206.md) is paid special [pay](/usc/37/101.md?p=21) under [subsection (a)](#a) for the performance of duties in a position designated under such subsection, the special [pay](/usc/37/101.md?p=21) shall be paid at the rate of <sup>1</sup>⁄<sub>30</sub> of the monthly rate authorized by such subsection for each day of the performance of duties in the designated position.
- (c) The [Secretary concerned](/usc/37/101.md?p=5) shall prescribe the criteria and circumstances under which [officers](/usc/37/101.md?p=11) of an armed force under his jurisdiction are eligible for special [pay](/usc/37/101.md?p=21) under this section and, when he considers it necessary, may abolish that special [pay](/usc/37/101.md?p=21).
- (d)
  - (1) Not more than 5 percent of the number of [officers](/usc/37/101.md?p=11) on [active duty](/usc/37/101.md?p=18) (other than for training or mobilization in support of a [contingency operation](/usc/37/101.md?p=26)) in an armed force in each of the [pay](/usc/37/101.md?p=21) [grades](/usc/37/101.md?p=15) O–3 and below, and not more than 10 percent of the number of [officers](/usc/37/101.md?p=11) on [active duty](/usc/37/101.md?p=18) in an armed force in [pay](/usc/37/101.md?p=21) [grade](/usc/37/101.md?p=15) O–4, O–5, or O–6, may be paid special [pay](/usc/37/101.md?p=21) under this section.
  - (2) Of the number of [officers](/usc/37/101.md?p=11) in the Selected Reserve of the Ready Reserve of an armed force who are not on [active duty](/usc/37/101.md?p=18) (other than for training or mobilization in support of a [contingency operation](/usc/37/101.md?p=26)), not more than 5 percent of the number of such [officers](/usc/37/101.md?p=11) in each of the [pay](/usc/37/101.md?p=21) [grades](/usc/37/101.md?p=15) O–3 and below, and not more than 10 percent of the number of such [officers](/usc/37/101.md?p=11) in [pay](/usc/37/101.md?p=21) [grade](/usc/37/101.md?p=15) O–4, O–5, or O–6, may be paid special [pay](/usc/37/101.md?p=21) under [subsection (b)](#b).
- (e) This section shall be administered under regulations prescribed by the Secretary of Defense for the [armed forces](/usc/37/101.md?p=4) under his jurisdiction, and by the Secretary of Homeland Security for the Coast Guard when the Coast Guard is not operating as a service in the Navy.
- (f) This section does not apply to a person who is entitled to special [pay](/usc/37/101.md?p=21) under section [302](/usc/37/302.md), [302a](/usc/37/302a.md), [302b](/usc/37/302b.md), or [303](/usc/37/303.md) of this title.

## Source credit

(Pub. L. 87–649, Sept. 7, 1962, 76 Stat. 466; Pub. L. 90–623, § 3(1), Oct. 22, 1968, 82 Stat. 1314; Pub. L. 96–284, § 6, June 28, 1980, 94 Stat. 593; Pub. L. 96–470, title II, § 202(b), Oct. 19, 1980, 94 Stat. 2242; Pub. L. 97–322, title I, § 116, Oct. 15, 1982, 96 Stat. 1586; Pub. L. 101–510, div. A, title XIII, § 1322(c)(3), Nov. 5, 1990, 104 Stat. 1672; Pub. L. 102–587, title V, § 5205, Nov. 4, 1992, 106 Stat. 5074; Pub. L. 107–296, title XVII, § 1704(c), Nov. 25, 2002, 116 Stat. 2314; Pub. L. 108–136, div. A, title VI, § 616, Nov. 24, 2003, 117 Stat. 1502.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| Revised section | Source (U.S. Code) | Source (Statutes at Large) |
| 306(a) | 37:241(a) (less last sentence). | Oct. 12, 1949, ch. 681, § 210; added May 20, 1958, Pub. L. 85–422, § 1(8), 72 Stat. 126. |
| 306(b) | 37:241(a) (last sentence). |  |
| 306(c) | 37:241(b). |  |
| 306(d) | 37:241(c). |  |
| 306(e) | 37:241(d). |  |
| 306(f) | 37:241(e). |  |

In subsection (a), the words “an armed force under his jurisdiction” are substituted for the words “the service concerned” in the first sentence of section 241(a) of existing title 37 to conform to the last sentence of that subsection.

In subsection (c), the words “(other than for training)” are inserted for clarity, since members on duty for training only are not included in computing strength authorizations.

### Editorial Notes

### Amendments

2003—Subsec. (a). Pub. L. 108–136, § 616(a)(1), designated existing provisions as par. (1), substituted “described in paragraph (2)” for “who is entitled to the basic pay of pay grade O–6 or below and”, and added par. (2).

Subsec. (b). Pub. L. 108–136, § 616(a)(3), added subsec. (b). Former subsec. (b) redesignated (c).

Subsec. (c). Pub. L. 108–136, § 616(a)(2), redesignated subsec. (b) as (c). Former subsec. (c) redesignated (d).

Subsec. (d). Pub. L. 108–136, § 616(b), designated existing provisions as par. (1), inserted “or mobilization in support of a contingency operation” after “training”, and added par. (2).

Pub. L. 108–136, § 616(a)(2), redesignated subsec. (c) as (d). Former subsec. (d) redesignated (e).

Subsecs. (e), (f). Pub. L. 108–136, § 616(a)(2), redesignated subsecs. (d) and (e) as (e) and (f), respectively.

2002—Subsec. (d). Pub. L. 107–296 substituted “of Homeland Security” for “of Transportation”.

1992—Subsec. (a). Pub. L. 102–587, § 5205(a), substituted “of pay grade O–6 or below” for “of pay grade O–3, O–4, O–5, or O–6” in text and amended table by substituting “O–4 and below” for “O–4” and striking out line providing monthly rate of $50 for pay grade O–3.

Subsec. (c). Pub. L. 102–587, § 5205(b), substituted “in each of the pay grades O–3 and below,” for “in pay grade O–3,”.

1990—Subsec. (f). Pub. L. 101–510 struck out subsec. (f) which read as follows: “The Secretary of Defense shall report to Congress by March 1 of each year following a calendar year in which special pay is disbursed under this section. Negative reports need not be submitted.”

1982—Subsec. (f). Pub. L. 97–322 struck out last sentence providing that the Secretary of Transportation shall make a similar report for the Coast Guard when the Coast Guard is not operating as a service in the Navy.

1980—Subsec. (e). Pub. L. 96–284 made section inapplicable to a person entitled to special pay under section 302a or 302b of this title.

Subsec. (f). Pub. L. 96–470 substituted provision requiring the Secretary of Defense to report by Mar. 1 of each year following a calendar year in which special pay is disbursed under this section and providing that negative reports need not be submitted for provision requiring the Secretary of Defense to report by Mar. 1 of each year on the administration of this section within each military department during the preceding calendar year.

1968—Subsecs. (d), (f). Pub. L. 90–623 substituted “Secretary of Transportation” for “Secretary of the Treasury”.

### Statutory Notes and Related Subsidiaries

### Effective Date of 2002 Amendment

Amendment by Pub. L. 107–296 effective on the date of transfer of the Coast Guard to the Department of Homeland Security, see section 1704(g) of Pub. L. 107–296, set out as a note under section 101 of Title 10, Armed Forces.

### Effective Date of 1968 Amendment

Amendment by Pub. L. 90–623 intended to restate without substantive change the law in effect on October 22, 1968, see section 6 of Pub. L. 90–623, set out as a note under section 5334 of Title 5, Government Organization and Employees.