Vol. 40, Number 2 — February 2008

Outside Earned Income Ceiling for FY 2008

With the January 1, 2008 increase in the basic pay for Executive Schedule employees, the ceiling on outside earned income for federal judges also increased, from $25,200 in 2007 to $25,830 in 2008. The ceiling applies only to outside earnings and not to investment income, royalties, pensions, and similar income sources that are specifically excluded by regulation.

The Ethics Reform Act prohibits high-ranking government officials from having outside earned income exceeding "15 percent of the annual rate of basic pay for Level II of the Executive Schedule." Effective January 1, 2008, the basic pay for Executive Level II increased to $172,000.