5 C.F.R. § 9901.343 Pay reduction based on unacceptable performance and/or conduct.
Title 5 - Administrative Personnel
An employee's rate of basic pay may be reduced based on a determination of unacceptable performance, conduct, or both. Such reduction may not exceed 10 percent unless the employee has been changed to a lower pay band and a greater reduction is needed to set the employee's pay at the maximum rate of the pay band. (See also §§9901.352 and 9901.354.) An employee's rate of basic pay may not be reduced more than once in a 12-month period based on unacceptable performance, conduct, or both.
Title 5: Administrative Personnel
PART 9901—DEPARTMENT OF DEFENSE HUMAN RESOURCES MANAGEMENT AND LABOR RELATIONS SYSTEMS
Subpart C—Pay and Pay Administration
Performance-Based Pay
§ 9901.343 Pay reduction based on unacceptable performance and/or conduct.

