Department of Defense
INSTRUCTION
NUMBER 5120.39
October 1, 2015
Incorporating Change 1, July 26, 2017
USD(P&R)
SUBJECT: DoD Wage Fixing Authority - Appropriated Fund and Nonappropriated Fund
Compensation Programs
References: See Enclosure 1
1. PURPOSE. This instruction:
a. Reissues DoD Instruction (DoDI) 5120.39 (Reference (a)), in accordance with the
authority in DoD Directive 5124.02 (Reference (b)), to establish policies, assign responsibilities,
and prescribe procedures for prevailing rate systems in accordance with chapter 53, subchapter 4
of Title 5, United States Code (U.S.C.) (Reference (c)).
b. Establishes the Director, Human Resources Operational Programs and Advisory Services
(HROPAS), Defense Civilian Personnel Advisory Service (DCPAS), as the DoD Wage Fixing
Authority and establishes the Wage and Salary Division located in the Department of Defense
Human Resources Activity (DoDHRA), DCPAS, as the technical staff to advise the DoD Wage
Fixing Authority and support the Department of Defense Wage Committee, an independent
advisory committee subject to the Federal Advisory Committee Act of 1972.
c. Defines the authorities of the Nonappropriated Fund (NAF) Personnel Policy Division,
located in the DoDHRA, DCPAS, to advise on NAF personnel policy and compensation.
2. APPLICABILITY. This instruction applies to OSD, the Military Departments, the Office of
the Chairman of the Joint Chiefs of Staff and the Joint Staff, the Combatant Commands, the
Office of the Inspector General of the Department of Defense, the Defense Agencies, the DoD
Field Activities, and all other organizational entities in the Department of Defense (referred to
collectively in this instruction as the “DoD Components”).
3. POLICY. It is DoD policy that salaries, wages, and compensation for DoD appropriated and
nonappropriated civilian employees be determined according to applicable laws, regulations, and
established policies referenced in this instruction.
