---
kind: "section"
citation: "5 U.S.C. § 8114"
title: "5"
title_heading: "Government Organization and Employees"
number: "8114"
heading: "Computation of pay"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/5/8114"
units:
  - "Part III — Employees"
  - "Subpart G — Insurance and Annuities"
  - "Chapter 81 — Compensation for Work Injuries"
  - "Subchapter I — Generally"
---

# §8114. Computation of pay

- (a) For the purpose of this section—
  - (1) “overtime [pay](/usc/5/7511.md?p=a-4)” means [pay](/usc/5/7511.md?p=a-4) for hours of [service](/usc/5/8401.md?p=26) in excess of a statutory or other basic workweek or other basic unit of worktime, as observed by the employing establishment; and
  - (2) “year” means a period of 12 calendar months, or the equivalent thereof as specified by regulations prescribed by the [Secretary](/usc/5/9901.md?p=2) of Labor.
- (b) In computing monetary [compensation](/usc/5/8101.md?p=12) for disability or death on the basis of [monthly pay](/usc/5/8101.md?p=4), that [pay](/usc/5/7511.md?p=a-4) is determined under this section.
- (c) The [monthly pay](/usc/5/8101.md?p=4) at the time of [injury](/usc/5/8101.md?p=5) is deemed one-twelfth of the average annual [earnings](/usc/5/8401.md?p=10) of the [employee](/usc/5/8101.md?p=1) at that time. When [compensation](/usc/5/8101.md?p=12) is paid on a weekly basis, the weekly equivalent of the [monthly pay](/usc/5/8101.md?p=4) is deemed one-fifty-second of the average annual [earnings](/usc/5/8401.md?p=10). However, for so much of a period of total disability as does not exceed 90 calendar days from the date of the beginning of compensable disability, the [compensation](/usc/5/8101.md?p=12), in the discretion of the [Secretary](/usc/5/9901.md?p=2) of Labor, may be computed on the basis of the actual daily wage of the [employee](/usc/5/8101.md?p=1) at the time of [injury](/usc/5/8101.md?p=5) in which event he may be paid [compensation](/usc/5/8101.md?p=12) for the days he would have worked but for the [injury](/usc/5/8101.md?p=5).
- (d) Average annual [earnings](/usc/5/8401.md?p=10) are determined as follows:
  - (1) If the [employee](/usc/5/8101.md?p=1) worked in the employment in which he was employed at the time of his [injury](/usc/5/8101.md?p=5) during substantially the whole year immediately preceding the [injury](/usc/5/8101.md?p=5) and the employment was in a [position](/usc/5/5102.md?p=a-3) for which an annual rate of [pay](/usc/5/7511.md?p=a-4)—
    - (A) was fixed, the average annual [earnings](/usc/5/8401.md?p=10) are the annual rate of [pay](/usc/5/7511.md?p=a-4); or
    - (B) was not fixed, the average annual [earnings](/usc/5/8401.md?p=10) are the product obtained by multiplying his daily wage for the particular employment, or the average thereof if the daily wage has fluctuated, by 300 if he was employed on the basis of a 6-day workweek, 280 if employed on the basis of a 5½-day week, and 260 if employed on the basis of a 5-day week.
  - (2) If the [employee](/usc/5/8101.md?p=1) did not work in employment in which he was employed at the time of his [injury](/usc/5/8101.md?p=5) during substantially the whole year immediately preceding the [injury](/usc/5/8101.md?p=5), but the [position](/usc/5/5102.md?p=a-3) was one which would have afforded employment for substantially a whole year, the average annual [earnings](/usc/5/8401.md?p=10) are a sum equal to the average annual [earnings](/usc/5/8401.md?p=10) of an [employee](/usc/5/8101.md?p=1) of the same class working substantially the whole immediately preceding year in the same or similar employment by the [United States](/usc/5/7103.md?p=a-18) in the same or neighboring place, as determined under paragraph (1) of this subsection.
  - (3) If either of the foregoing methods of determining the average annual [earnings](/usc/5/8401.md?p=10) cannot be applied reasonably and fairly, the average annual [earnings](/usc/5/8401.md?p=10) are a sum that reasonably represents the annual earning capacity of the injured [employee](/usc/5/8101.md?p=1) in the employment in which he was working at the time of the [injury](/usc/5/8101.md?p=5) having regard to the previous [earnings](/usc/5/8401.md?p=10) of the [employee](/usc/5/8101.md?p=1) in Federal employment, and of other [employees](/usc/5/8101.md?p=1) of the [United States](/usc/5/7103.md?p=a-18) in the same or most similar class working in the same or most similar employment in the same or neighboring location, other previous employment of the [employee](/usc/5/8101.md?p=1), or other relevant factors. However, the average annual [earnings](/usc/5/8401.md?p=10) may not be less than 150 times the average daily wage the [employee](/usc/5/8101.md?p=1) earned in the employment during the days employed within 1 year immediately preceding his [injury](/usc/5/8101.md?p=5).
  - (4) If the [employee](/usc/5/8101.md?p=1) served without [pay](/usc/5/7511.md?p=a-4) or at nominal [pay](/usc/5/7511.md?p=a-4), paragraphs (1), (2), and (3) of this subsection apply as far as practicable, but the average annual [earnings](/usc/5/8401.md?p=10) of the [employee](/usc/5/8101.md?p=1) may not exceed the minimum rate of [basic pay](/usc/5/8401.md?p=4) for GS–15. If the average annual [earnings](/usc/5/8401.md?p=10) cannot be determined reasonably and fairly in the manner otherwise provided by this section, the average annual [earnings](/usc/5/8401.md?p=10) shall be determined at the reasonable value of the [service](/usc/5/8401.md?p=26) performed but not in excess of $3,600 a year.
- (e) The value of subsistence and quarters, and of any other form of remuneration in kind for [services](/usc/5/8401.md?p=26) if its value can be estimated in money, and premium [pay](/usc/5/7511.md?p=a-4) under [section 5545(c)(1) of this title](/usc/5/5545.md?p=c-1) are included as part of the [pay](/usc/5/7511.md?p=a-4), but [account](/usc/5/8401.md?p=1) is not taken of—
  - (1) overtime [pay](/usc/5/7511.md?p=a-4);
  - (2) additional [pay](/usc/5/7511.md?p=a-4) or allowance authorized outside the [United States](/usc/5/7103.md?p=a-18) because of differential in cost of living or other special circumstances; or
  - (3) bonus or premium [pay](/usc/5/7511.md?p=a-4) for extraordinary [service](/usc/5/8401.md?p=26) including bonus or [pay](/usc/5/7511.md?p=a-4) for particularly hazardous [service](/usc/5/8401.md?p=26) in time of war.

## Source credit

(Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 540; Pub. L. 89–737, § 1(1), Nov. 2, 1966, 80 Stat. 1164.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| Derivation | U.S. Code | Revised Statutes and<br>Statutes at Large |
|  | 5 U.S.C. 762. | Sept. 7, 1916, ch. 458, § 12, 39 Stat. 746. |
|  |  | Oct. 14, 1949, ch. 691, § 203, 63 Stat. 862. |

In subsection (d)(4), the words “the minimum rate of basic pay for GS–15” are substituted for “the basic rate of annual compensation specified under the Classification Act of 1949, as amended, for positions in grade GS–15 at the bottom of such grade”. In former section 762, the words “Classification Act of 1949” were substituted for “Classification Act of 1923” on authority of § 1106(a) of the Act of Oct. 28, 1949, ch. 782, 63 Stat. 972.

Administration of this subchapter was transferred to the Secretary of Labor by section 1 of 1950 Reorg. Plan No. 19, 64 Stat. 1271 (see section 8145).

Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.

### Editorial Notes

### Amendments

1966—Subsec. (e). Pub. L. 89–737 inserted reference to premium pay under section 5545(c)(1) of this title.

### Statutory Notes and Related Subsidiaries

### Effective Date of 1966 Amendment

Pub. L. 89–737, § 4, Nov. 2, 1966, 80 Stat. 1164, which provided that the amendments made by this Act [amending this section and sections 8331 and 8704 of this title] apply with respect to premium pay payable from and after the first day of the first pay period which begins after the date of enactment of this Act [Nov. 2, 1966], was repealed by Pub. L. 90–83, § 10(b), Sept. 11, 1967, 81 Stat. 223.