Understanding Leave Without Pay (LWOP) for Federal Employees

Understanding Leave Without Pay (LWOP) for Federal Employees

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Leave Without Pay (LWOP) is a type of approved absence where you’re temporarily off the job — but not off the books. If you're a federal employee, you can request LWOP, and while approval is typically up to your supervisor, there are times when you're legally entitled to it.

When You're Entitled to LWOP

• Military Training: You can use up to 15 days each fiscal year for military training (active or inactive duty). If unused, you can carry over up to 15 days into the next year.
• Extended Active Duty: If you're called to active duty, you can remain on LWOP for as long as your military orders require.

Per OPM and USERRA guidelines, you're allowed to use any accrued leave — annual, military, compensatory, or sick leave — while on duty. You can even use leave intermittently along with LWOP.

Returning to Work

Once your service ends, you're entitled to return to the same position you left. You can also make a deposit to receive retirement credit for your time on LWOP.

Benefits During LWOP

FEHB (Health Insurance)

Your health coverage through the Federal Employees Health Benefits (FEHB) program continues for up to 365 days on LWOP. The government keeps covering its share, and your portion can be:

• Paid as you go
• Deducted when you return to work
• Paid in a lump sum

FEGLI (Life Insurance)

Your life insurance (FEGLI) coverage also continues — but you won’t need to pay for it while on LWOP.

Annual and Sick Leave

If you accumulate 80 hours of LWOP in a pay period, you won’t earn any annual or sick leave for that period. But once you return, leave accrual resumes until another 80 hours of LWOP are reached.

Severance Pay

LWOP counts toward the 12-month employment requirement to qualify for severance pay. However, periods not creditable for leave won’t count when calculating the actual severance amount.

Thrift Savings Plan (TSP)

• You can’t contribute to TSP while on LWOP (no salary = no contributions).
• Catch-up contributions for those 50+ are also paused.
• Existing TSP loans can be suspended for up to 1 year, or longer if on active duty — but interest keeps accruing.
• You can’t take out a new loan while on LWOP.

Final Thoughts
LWOP can be a helpful tool for federal employees needing time away — especially for military obligations. But it’s important to understand how it affects your benefits and long-term planning. Be sure to talk with your HR office before making any decisions.

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