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Home Career & Pay Leave & Earnings Statement
Career & Pay · Topic 04 · Foundations

Reading your Leave and Earnings Statement.

The LES is the single most information-dense document in a federal employee's working life. Most people glance at net pay and close it. The rest of the statement is where pay errors hide, deductions drift, and retirement data quietly accumulates. Here is every block, explained.

Your LES is issued every two weeks by your payroll provider — most commonly DFAS, NFC, Interior Business Center, or GSA payroll services — and accessed through myPay, the Employee Personal Page, Employee Express, or your agency's HR portal. It is legally your record of what you earned, what was withheld, and what benefits accrued during a given pay period. It is also your running audit trail for retirement service credit, leave accrual, and TSP contributions. Most federal employees never audit it. Most federal employees have at least one quiet error in their LES history.

This guide walks through every block on the LES in the order it appears: header, earnings, deductions, leave, TSP and retirement, and the remarks section where one-off information shows up. It also covers what to check every pay period and what to do when something looks wrong.

26
LES issued per calendar year
~60
Distinct data points per LES
6 yrs
Recommended retention window
2,087
Statutory annual-to-hourly divisor
Why You Read It

The LES carries more weight than a typical private-sector pay stub because it is your official evidence of creditable service, leave accrual, and retirement contributions. The system does not flag errors for you. You find them by reading. HR fixes them only when you ask. A single-pay-period error on leave tier or FERS category, left uncorrected, can cost thousands of dollars across a career — and the longer it persists, the harder it is to reverse.

Section I What an LES is and why it matters

The Leave and Earnings Statement is the federal equivalent of a pay stub, with three added jobs that make it more important than any stub a private-sector employer would issue. First, it is your running evidence of creditable service for retirement — each pay period on the LES is a pay period that counts toward your FERS or CSRS annuity. Second, it is your audit trail for leave accrual, which becomes real money at separation or retirement through lump-sum annual leave payments and converted sick leave service credit. Third, it shows TSP contributions and agency matching in real time — where quiet errors can cost thousands of dollars in lost investment growth if they persist uncorrected.

Federal employees should read the LES at least once a month and review it in detail at every major life event: promotion, reassignment, salary adjustment, FEHB Open Season, family change, and during retirement planning in the years leading up to separation. The LES system does not flag errors. You find them by reading them.

Retention

Keep every LES for at least six years — longer if you anticipate a retirement claim, a back pay dispute, or any service computation issue. Electronic PDFs are sufficient. Most myPay and EPP portals retain only 12 to 24 months on demand, so download and archive locally. This matters most for the final few years before retirement, where your High-3 computation requires verified earnings data.

The top portion of every LES identifies you as an employee and locks in the pay structure applied for the period. The header fields are where the most consequential data lives — grade, step, locality, service computation date — and where mis-classifications silently produce wrong pay for months at a time.

Field What It Shows
Pay Period EndingLast day of the two-week period this LES covers. Federal pay is paid in arrears — an LES dated April 25 covers work performed through April 18.
Pay Plan / Grade / StepYour classification and rank at this snapshot (e.g., GS-13-05). Any mid-period change should generate a separate LES for the old and new rates.
Annual SalaryYour locality-adjusted annual rate. This is the number you quote in mortgage applications. Confirm it matches grade + step + locality math from your GS table and locality area.
Hourly RateAnnual salary ÷ 2,087. Used for overtime and some leave calculations.
Locality AreaYour duty-station-derived locality code (e.g., DCB for Washington-Baltimore, RUS for Rest of U.S.). If this is wrong, the entire salary figure above is wrong.
Service Computation Date (SCD)The date used to compute leave accrual tier and retirement eligibility. If you have military buyback pending, this may not yet reflect bought-back service.
FLSA CategoryExempt or non-exempt. Controls overtime eligibility.

The SCD is particularly worth watching. For most employees it matches their original federal entry-on-duty date, but it can diverge if you have prior civilian service that counts, military service that has been bought back, or any break in service. The SCD shown on your LES is the operational SCD your agency uses for leave accrual purposes — it is not always the same as your Retirement SCD, which is tracked separately and is the one that determines FERS eligibility and annuity computation. If either SCD is off by a year, the downstream cost across a career is substantial.

Section III Earnings block — every pay code

The earnings block lists every positive payment made during the pay period, broken out by type. Each line shows a code, hours or units, a rate, and an amount. Common codes across DFAS, NFC, and IBC payroll systems:

Code Description Category
REGRegular basic pay for hours workedEarnings
LOCALLocality pay supplement (sometimes bundled into REG, depending on payroll provider)Earnings
ANNAnnual leave used during the pay periodLeave Pay
SCKSick leave used during the pay periodLeave Pay
HOLFederal holiday payLeave Pay
OTOvertime pay (non-exempt employees only)Premium
NDPNight differential payPremium
SUNSunday premium payPremium
HAZHazard pay differentialPremium
AWARDPerformance or special-act cash awardOne-Time
RETRORetroactive pay adjustment (e.g., delayed step increase or reclassification)Adjustment

For a typical salaried employee working a standard two-week pay period with no leave, the earnings block will show 80 hours of REG, and 8 hours of HOL if a federal holiday fell within the period. When your earnings block shows anything unexpected — or shows less than 80 hours without an explanation — investigate before the next pay period closes. Errors caught within a few pay periods are easy to correct; errors that persist across months generate complicated retroactive adjustments and tax reporting consequences.

Section IV Deductions block — taxes and benefits

The deductions block is where most employees never look, and where most quiet problems live. Deductions fall into two categories: mandatory (taxes and required retirement contributions) and voluntary (benefit premiums and elective contributions). Both appear in the same block on most payroll systems.

Code Description Type
FITWFederal income tax withheld (based on your W-4)Mandatory Tax
FICA-OASDISocial Security tax — 6.2% of wages up to the annual wage baseMandatory Tax
FICA-HIMedicare tax — 1.45% of all wagesMandatory Tax
SITWState income tax withheldMandatory Tax
FERS / FERS-RAE / FERS-FRAEFERS employee contribution — 0.8%, 3.1%, or 4.4% depending on hire dateRetirement
TSP-C / TSP-RYour traditional (C) or Roth (R) TSP contributionRetirement
FEHBYour share of Federal Employees Health Benefits premiumBenefit
FEGLIFederal Employees' Group Life Insurance premiumBenefit
FEDVIPFederal dental and vision premium (if elected)Benefit
FSAFlexible Spending Account contributionPre-Tax
TSP LOANTSP loan repayment (if you have an outstanding loan)Loan

The FERS category in your deductions is particularly worth verifying. Employees first hired before 2013 are FERS at 0.8 percent. Those first hired in 2013 are FERS-RAE (Revised Annuity Employees) at 3.1 percent. Those first hired in 2014 or later are FERS-FRAE (Further Revised Annuity Employees) at 4.4 percent. If you were misclassified at hire — which happens, especially for employees with breaks in service or prior federal employment — you may be paying more than you legally owe. The difference is typically several hundred dollars per pay period, compounding into thousands per year.

Open Season Verification

After every FEHB Open Season, the first LES of the new plan year is the one to read carefully. Verify that your new plan code appears and your premium matches what you elected. Errors during Open Season sometimes roll employees into the default self-only enrollment of their previous plan, or fail to implement plan changes entirely. The sooner you catch it, the easier it is to fix.

To estimate what your take-home pay should be — gross, all deductions, and net — before comparing it against your actual LES, use the Net Pay Estimator. It applies the full federal, FICA, FERS, TSP, and benefit deduction logic for any grade, step, and locality at 2026 rates.

Section V Leave block — annual, sick, and other

The leave block shows, for each leave category, your accrual this period, leave used this period, and ending balance. This is where your time becomes money.

Category What It Shows Value at Separation
ANNUALVacation / annual leave — 4, 6, or 8 hours accrued per pay period by SCD tierCash — paid out as lump sum
SICKSick leave — 4 hours accrued per pay period regardless of SCD tierService credit — converts to FERS time
RESTOREDAnnual leave restored by agency action after forfeitureUse-or-lose — specific windows
CREDITCredit hours earned under alternative work schedulesFlex balance
COMPCompensatory time earned in lieu of overtime payFlex balance
MILMilitary leave — 15 days annual for reservists (5 U.S.C. 6323)Statutory — resets annually
PPLPaid Parental Leave balance — 12 weeks per qualifying eventStatutory — per-event entitlement

Annual leave accrual tier is determined by your SCD for leave purposes:

If your leave accrual tier is wrong, it compounds. A SCD that is off by a year can cost a mid-career employee 52 hours of annual leave accrual annually, which at a typical GS-13 hourly rate is roughly $3,000 of lost leave value per year, plus whatever that leave would have converted to at separation.

Year-End Check

Annual leave carries over year to year but is capped at 240 hours for most employees (360 hours for overseas assignments). Anything above the cap as of the final pay period of the leave year is forfeited — it simply disappears. Check your Pay Period 25 and 26 LES every December and plan late-year use or convert to TSP contributions through the lump-sum mechanism if available.

Section VI TSP and retirement block

The TSP portion of your LES shows three things: your employee contribution (traditional or Roth), the agency automatic 1 percent contribution, and the agency matching contribution of up to 4 percent on your first 5 percent of contributions. Together these can equal 5 percent of your pay in free agency money if you contribute at least 5 percent yourself.

Every pay period, verify:

The most common TSP LES error is an agency match failure, which typically happens around personnel actions — promotion, reassignment, break in service, or administrative action — and often persists for multiple pay periods before anyone catches it. Missed agency matching is never automatically recovered. You must raise it with HR and payroll, supply your affected LES records, and request a corrective action. Catching it within one or two pay periods makes resolution straightforward; catching it months later can require a formal TSP correction request.

Section VII The remarks section — where surprises hide

The remarks block at the bottom of the LES is used by payroll systems to communicate one-off information: pending actions, notifications of future changes, corrections to prior periods, and reminders. It often looks like boilerplate, but real information regularly appears here:

When a remark appears that you did not expect, read it. When the same remark appears for multiple pay periods without resolution, something in your file is stuck and needs HR attention.

Section VIII What to check every pay period

You do not need to audit the entire LES every two weeks. A five-minute scan covers the essentials and catches the majority of problems early.

The Five-Minute LES Audit

Run this check every pay period

  • Net pay matches roughly what you expect — larger-than-expected variation signals that something changed.
  • Regular hours show 80 hours for a full-time employee with no leave used — less than 80 without explanation is worth investigating with your timekeeper.
  • Grade and step unchanged from last period (unless you just had a WIGI or promotion).
  • Locality code unchanged from last period (unless you just changed duty station).
  • TSP employee contribution + agency automatic + agency matching all present at the expected amounts.
  • Leave balances moving in the expected direction — annual accruing, sick accruing at 4 hours per pay period.
  • Voluntary deductions (FEHB, FEGLI, FEDVIP, FSA) match your current elections.
  • Remarks section — any new entry worth reading.

Once a quarter, do a longer check: year-to-date earnings against your expected annual rate, year-to-date TSP contributions against the IRS elective deferral limit, and year-to-date leave usage against your remaining balance with the 240-hour year-end cap in mind. At retirement planning time — typically the final three years of service — verify every LES line item against your Official Personnel File and any pending service computation actions before you submit your retirement paperwork.

Section IX Frequently asked questions

Your access point depends on your payroll provider. DFAS-serviced employees use myPay. NFC-serviced employees (USDA, HHS, and many smaller agencies) use the Employee Personal Page (EPP). Interior Business Center customers use Employee Express. GSA payroll customers use their agency-specific portal.

If you are unsure which system applies to you, your agency HR office can confirm — and once you know, bookmark the URL. You will be visiting it regularly.

Most payroll portals retain between 12 and 24 months of LES history available on demand. Records older than that are typically archived and retrievable only through a formal request to the payroll provider, which can take weeks or months to fulfill.

This is why you should download and save every LES yourself, especially in the years leading up to retirement. Retirement processing sometimes requires verification of earnings from periods well beyond the portal's on-demand retention window.

Report the error in writing to your timekeeper, HR, and payroll contact. Keep the LES showing the error and your original correspondence — email is ideal for the paper trail. Small errors such as a missing hour of leave are typically corrected on the following pay period.

Larger errors such as incorrect grade, wrong locality, a missed step increase, or FERS category misclassification can take multiple pay periods to correct and may generate retroactive pay adjustments. The earlier you catch it, the faster and cleaner the fix.

Pre-tax deductions reduce your taxable wages below your gross pay. Traditional TSP contributions, FEHB premiums, FSA contributions, and HSA contributions are all pre-tax for federal income tax purposes. Your taxable wages for federal income tax can be 10 to 20 percent lower than your gross.

Use the "Federal Taxable Wages YTD" field rather than gross YTD when estimating your federal tax. Mortgage and loan applications typically want gross; tax planning wants taxable.

Yes. Military deposit payments appear as a deduction code (often "MIL DEP" or similar depending on your payroll provider). The LES shows the current pay period deduction and the year-to-date total.

It does not show the remaining balance owed on the deposit. For that you need the original deposit application and receipts issued by your agency HR or payroll. The Warrior Retirement site covers the full buyback process including how to track your remaining balance.

Estimate what your LES should show.

The Net Pay Estimator applies federal, FICA, FERS, TSP, and benefit deductions to your grade, step, and locality at 2026 rates — so you can compare against your actual LES line by line.

Open the Net Pay Estimator