OPM finalizes rule simplifying recruitment and relocation incentive waivers

The Office of Personnel Management finalized new regulations Monday that simplify the process for approving recruitment and relocation incentive payments to personnel serving in a critical agency need. 

The new rule, which will go into effect on Feb. 13, 2026, delegates the authority for approving waivers to caps on the incentive payments to federal agencies, rather than OPM. The new rule was first introduced two years ago as a way to making hiring and retention efforts easier while lightening the administrative load on OPM. 

“This will allow agencies to move more quickly in approving incentives when hiring new employees and relocating those who are moving into positions that are likely to be difficult to fill,” the final rule said in a Federal Register post on Monday. “Such efficiency could be especially helpful in emergencies or other urgent situations in which recruiting new employees or relocating current employees rapidly is necessary.”

OPM first gained recruitment and relocation waiver authority in 2005, but didn't receive agency waiver requests until 2008. Since that time, it has authored 15 recruitment incentive waivers at six agencies and 11 relocation incentive waivers four agencies for "healthcare, cybersecurity, and other mission-critical occupations."

Currently, agencies can offer new hires in critical roles up to 25% of their annual basic pay for at least four years of service, any incentive offering more over a shorter period requires the agency apply for a waiver from OPM.

Under the new regulation, agencies themselves will be able to waive recruitment or relocation incentive caps to up to 50% of an employee’s basic pay times the number of years in their service agreement, not to exceed 100% of pay. 

Agencies would need to submit “a description of the critical agency need the proposed recruitment or relocation incentive would address” alongside their final waiver determination and would need to designate officials with authority issue the waivers in their recruitment and relocation incentive plans.

The regulation also removes a minimum six-month required service period before a recruitment incentive could be applied, and recruitment incentive service agreements can be any length up to four years. 

The final rule drops previous versions that call for the used of gender-neutral language, saying that the “proposed changes were not adopted because they are inconsistent with the Administration's policy regarding gender ideology.” 

Previous drafts of the regulation received 11 comments collectively from seven individuals, two organizations and two agencies, touching on topics ranging from incentive amounts, applicable positions, eligibility, oversight and other issues. OPM responded with further clarification on those comments in Monday rule. 

Officials also noted with regards to oversight that OPM can suspend or revoke the authorities or require approval for them if it finds “that an agency is not paying these incentives consistent with the agency's recruitment and relocation incentive plans” and could refer any prohibited personnel actions to the Office of Special Counsel for investigation.