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The difference in wages, or the pay gap, between the two comparable positions helps determine what the locality pay adjustment should be for a given area. ... How to calculate your actual raise using locality pay. The alternative pay plan institutes a 4.6% raise for 2023, but again, that percentage is an average. ...

The U.S. Office of Personnel Management (OPM) provides geographic pay adjustments, known as locality pay, for federal employees depending on their location. This pay adjustment is meant to compensate for higher living costs in certain areas, such as Washington D.C., San Francisco, or New York City, where locality pay rates can increase salaries ...

How Locality Pay Adjustments Work - FederalPay.org Locality Adjustments. Employees paid on the General Schedule (GS) and the Law Enforcement Officer (LEO) Schedule receive a percentage increase to their salary to compensate for the different costs of living Across the U.S. and abroad. Each year the federal government calculates the cost of living in 33 different regions and the Rest of the U.S ...

This information is then compared to the base pay of federal employees in similar positions to calculate the locality pay adjustment factor. The Office of Management and Budget (OMB) currently has 53 locality areas for OPM to use in setting locality adjustments for all 50 states and all United States territories and possessions.

For example, if you work in a locality area with a 20% adjustment rate, your salary will increase by 20% of your base pay: Base Pay + Locality Adjustment = Annual Salary. For example, a GS-7 Step 1 employee with a base salary of $40,000 in an area with a 20% locality pay adjustment would earn the following: $40,000 + ($40,000 x 0.20) = $48,000

Our powerful General Schedule Salary Calculator can help you determine government salaries for any location in the United States. We calculate salaries based on the base General Schedule pay table for the year you have selected, combined with the applicable locality adjustment for the ZIP code you provide.

Rate of basic pay: The “rate of basic pay” used to calculate most employees’ high-3 average pay is shown as the “Adjusted Basic Pay” in Box 20C on the Notification of Personnel Action (SF 50). This rate includes the annual rate of “Basic Pay” plus the “Locality Adjustment,” resulting in the Adjusted Basic Pay.

recommending new and/or modified locality pay areas and the level of locality payments. Under the law, the President may decide to either provide locality pay adjustments based on the Pay Agent’s recommendation or an alternative level of locality payments because of a national emergency or serious economic conditions. DEFINITIONS

To calculate your 2018 base raise, increase $43,251 (your 2017 base pay rate) by the 2018 across-the-board base pay raise of 1.4 percent. Next, increase $43,857 (your salary adjusted for the 2018 base pay raise) by your locality pay percentage for 2018. In this case, the 2018 locality pay increase for the “Rest of U.S.” is 15.37 percent.

Geographic pay differential is the concept of paying different rates for employees in different locales. This is largely based on factors such as cost of living, cost of labor, and current market rates, but there are many other factors that can play a part as well.We’ll take a look at several of the key factors in the sections below.

Determining a Locality Rate. To determine an employee's locality rate, increase the employee's "scheduled annual rate of pay" by the locality pay percentage authorized by the President for the locality pay area in which the employee's official worksite is located. Locality pay areas are defined in 5 CFR 531.603. "Scheduled Annual Rate of Pay"

There are a total of 53 General Schedule Locality Areas, which were established by the GSA's Office of Personnel Management to allow the General Schedule Payscale (and the LEO Payscale, which also uses these localities) to be adjusted for the varying cost-of-living across different parts of the United States.. Each Locality Area has a Locality Pay Adjustment percentage, updated yearly, which ...

Locality payments became effective in January 1994 and an average 3.95% adjustment was provided, as the law required, for that year. For each year since then, alternative plans have reduced the ...

Calculate General Schedule Pay. Grade and Step create a grid of different pay rates. To determine your pay rate, find the intersection of your grade an step in the GS Base Pay Table. Once you have your base pay, multiple that rate by your locality adjustment. If you are grade 13, step 5 in 2016; your base pay would be $83,694. If you work at ...

Locality adjustments are paid within each area determined to have a Federal - non-Federal pay disparity greater than 5%. There currently are 35 locality pay areas, including Rest of U.S. area, Alaska, Hawaii, and other Nonforeign Areas Defined in 5 CFR Part 591. Employees entitled to a higher rate of basic pay than the locality rate for their ...

Instead, in most years there is an adjustment to the GS pay scale, and then an additional amount of money is set aside to adjust the locality rates. For 2018 the President authorized an across the board increase of 1.4% and locality pay adjustments that will cost about .5% of payroll.

Locality Pay. Your official duty station, not where you live, determines your locality pay. If you get a job in a new area, your locality pay will change to your new duty station’s rate. However, if you go on temporary assignment, you will receive your current pay. Special Higher Minimum Rates for Law Enforcement Officers (LEO)

In 2025, the highest locality pay area for federal employees is San Francisco-San Jose-Oakland, California, with a raise of 2.35%. This is followed by Seattle-Tacoma, Washington, at 2.29% and New ...

This information is then compared to the base pay of federal employees in similar positions to calculate the locality pay adjustment factor. The Office of Management and Budget (OMB) sets 47 locality areas for OPM to use in setting locality adjustments for all 50 states and all United States territories and possessions.