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.

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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

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