---
kind: "section"
citation: "5 U.S.C. § 9805"
title: "5"
title_heading: "Government Organization and Employees"
number: "9805"
heading: "Retention bonuses"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/5/9805"
units:
  - "Part III — Employees"
  - "Subpart I — Miscellaneous"
  - "Chapter 98 — National Aeronautics and Space Administration"
---

# §9805. Retention bonuses

- (a) Notwithstanding [section 5754](/usc/5/5754.md), the [Administrator](/usc/5/9801.md?p=2) may [pay](/usc/5/7511.md?p=a-4) a bonus to an [employee](/usc/5/4701.md?p=a-2), in accordance with the [workforce plan](/usc/5/9801.md?p=5) and subject to the limitations in this section, if the [Administrator](/usc/5/9801.md?p=2) determines that—
  - (1) the unusually high or unique qualifications of the [employee](/usc/5/4701.md?p=a-2) or a special need of the [Administration](/usc/5/9801.md?p=1) for the [employee](/usc/5/4701.md?p=a-2)’s [services](/usc/5/8401.md?p=26) makes it essential to retain the [employee](/usc/5/4701.md?p=a-2); and
  - (2) the [employee](/usc/5/4701.md?p=a-2) would be likely to leave in the absence of a retention bonus.
- (b) If the [position](/usc/5/5102.md?p=a-3) is described as addressing a [critical need](/usc/5/9801.md?p=3) in the [workforce plan](/usc/5/9801.md?p=5) under [section 9802(b)(2)(A)](/usc/5/9802.md?p=b-2-A), the amount of a bonus may not exceed 50 percent of the [employee](/usc/5/4701.md?p=a-2)’s annual rate of [basic pay](/usc/5/8401.md?p=4) (including comparability payments under sections [5304](/usc/5/5304.md) and [5304a](/usc/5/5304a.md)).
- (c) If the [position](/usc/5/5102.md?p=a-3) is not described as addressing a [critical need](/usc/5/9801.md?p=3) in the [workforce plan](/usc/5/9801.md?p=5) under [section 9802(b)(2)(A)](/usc/5/9802.md?p=b-2-A), the amount of a bonus may not exceed 25 percent of the [employee](/usc/5/4701.md?p=a-2)’s annual rate of [basic pay](/usc/5/8401.md?p=4) (excluding comparability payments under sections [5304](/usc/5/5304.md) and [5304a](/usc/5/5304a.md)).
- (d)
  - (1)
    - (A) Payment of a bonus under this section shall be contingent upon the [employee](/usc/5/4701.md?p=a-2) entering into a [service](/usc/5/8401.md?p=26) agreement with the [Administration](/usc/5/9801.md?p=1).
    - (B) At a minimum, the [service](/usc/5/8401.md?p=26) agreement shall include—
      - (i) the required [service](/usc/5/8401.md?p=26) period;
      - (ii) the method of payment, including a payment schedule, which may include a lump-sum payment, installment payments, or a combination thereof;
      - (iii) the amount of the bonus and the basis for calculating the amount; and
      - (iv) the conditions under which the agreement may be terminated before the agreed-upon [service](/usc/5/8401.md?p=26) period has been completed, and the effect of the termination.
  - (2) The [employee](/usc/5/4701.md?p=a-2)’s [service](/usc/5/8401.md?p=26) period shall be expressed as the number equal to the full years and twelfth parts thereof, rounding the fractional part of a month to the nearest twelfth part of a year. The [service](/usc/5/8401.md?p=26) period may not be less than 6 months and may not exceed 4 years.
  - (3) Notwithstanding [paragraph (1)](#d-1), a [service](/usc/5/8401.md?p=26) agreement is not required if the [Administration](/usc/5/9801.md?p=1) [pays](/usc/5/7511.md?p=a-4) a bonus in biweekly installments and sets the installment payment at the full bonus percentage rate established for the [employee](/usc/5/4701.md?p=a-2), with no portion of the bonus deferred. In this case, the [Administration](/usc/5/9801.md?p=1) shall inform the [employee](/usc/5/4701.md?p=a-2) in writing of any decision to change the retention bonus payments. The [employee](/usc/5/4701.md?p=a-2) shall continue to accrue entitlement to the retention bonus through the end of the [pay](/usc/5/7511.md?p=a-4) period in which such written notice is provided.
- (e) A bonus under this section may not be considered to be part of the [basic pay](/usc/5/8401.md?p=4) of an [employee](/usc/5/4701.md?p=a-2).
- (f) An [employee](/usc/5/4701.md?p=a-2) is not entitled to a retention bonus under this section during a [service](/usc/5/8401.md?p=26) period previously established for that [employee](/usc/5/4701.md?p=a-2) under [section 5753](/usc/5/5753.md) or under section 9804.
- (g) No more than 25 percent of the total amount in bonuses awarded under [subsection (a)](#a) in any year may be awarded to [supervisors](/usc/5/7103.md?p=a-10) or [management officials](/usc/5/7103.md?p=a-11).

## Source credit

(Added Pub. L. 108–201, § 3(a), Feb. 24, 2004, 118 Stat. 465.)