Does My Locality Pay Rate Include the Basic Percentage Increase?

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By on January 11, 2018 in Pay & Benefits, Q&A with 0 Comments

Series of red blocks of varying sizes each containing a white percent sign set against a white background

Since the posting of the 2018 salary information for federal employees under the general schedule, a question has been posed by several readers that may be of interest to others.

Q: There is a 1.4% basic pay increase for most federal employees starting in January 2018. In my locality pay area, the charts indicate that the percentage I will receive for 2018 is 2.07%. Does this mean that my pay raise in January will be 3.47% (i.e., 1.4% + 2.07%)?

A: No, it does not mean your pay raise in January will be 3.47%. The total pay raise for each locality pay area that is listed in the charts incorporates the basic pay raise of 1.4%.

So, for example, in the Denver locality pay area, there will be a locality pay raise of 2.07%. This 2.07% included the basic pay raise of 1.4%.

The often cited average of a 1.9% raise in pay for federal employees in 2018 also included the 1.4%. The average pay increase goes up to 1.9% because of the number of locality pay areas now existing under the General Schedule.

© 2018 Ralph R. Smith. All rights reserved. This article may not be reproduced without express written consent from Ralph R. Smith.


About the Author

Ralph Smith has several decades of experience working with federal human resources issues. He has written extensively on a full range of human resources topics in books and newsletters and is a co-founder of two companies and several newsletters on federal human resources. Follow Ralph on Twitter: @RalphSmith47