Up to 5 percent above base salary may be given for the acquisition of additional skills and abilities. These additional skills and abilities are beyond the qualifications required for the job. These skills and abilities must increase the value of the employee to the agency and must be verifiable through certification, licensure, diploma, or other method. The administrator of OPM must approve the agency's plan to provide skill based adjustments. The adjustments are paid out as a monthly differential on a supplement payroll or as a one time lump sum payment.
Monthly payments cease if employees occupy jobs to which the skill is no longer applicable.
Skill based adjustments are applicable for those employees who acquire the additional skills after policy implementation. This provides an adjustment when individuals are significantly underpaid to other employees in the same job family level. It increases the employee's base salary. All employees within the agency in jobs affected must be given uniform treatment. This mechanism allows each agency to establish the hiring rates from the minimum to the mid point in the pay band.