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Glossary of Terms Used for USAID's Automated Directives System (ADS) - Updated 07/15/2011 Partial Revision

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Term Definition
Disposable Pay

That part of current basic pay, special pay, incentive pay, retired pay, retainer pay, or in the case of an employee not entitled to basic pay, other authorized pay remaining after the deduction of any amount required by law to be withheld (other than deductions to execute garnishment orders) in accordance with 5 CFR 581 and 582. Among the legally required deductions that must be applied first to determine disposable pay are levies pursuant to the Internal Revenue Code (Title 26, United States Code) and deductions described in 5 CFR 581.105 (b) Through (f) These deductions include, but are not limited to: Social Security withholdings. Federal, state, and local tax withholdings. health insurance premiums. retirement contributions, and life insurance premiums (source: 5 CFR Part 550) (USAID Automated Directives System - ADS - Chapter 625).

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