How does locality adjustment work?
How does locality adjustment work?
Locality relates to the region where the employee works. This factor adjusts the base rate of pay for the cost of living in a geographic area. While each position is assigned to a specific grade, and each employee is assigned to a step within that grade, the pay rate will vary by location.
What does locality adjusted mean?
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.
How do you calculate locality adjustment?
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.
How does locality pay increase?
The amount of a locality-based comparability increase is based on survey data collected by the Bureau of Labor Statistics which surveys what non-Federal employers pay their employees in various metropolitan areas across the country. Locality pay does not apply outside the continental United States.
Does GS pay scale include locality?
For white-collar employees, basic pay is usually set under the General Schedule (GS), which is adjusted annually. Employees in GS positions in the continental United States also receive locality pay (there are 32 defined locality pay areas). Special rates are higher rates of pay than GS and locality rates.
Does OPM retirement include locality pay?
So, does FERS include locality pay in your annuity? Yes, the locality pay adjustment is included as part of your base pay when calculating your annuity. There is no adjustment made to where you live after you are retired.
What is difference between GS and GG?
GS positions are considered competitive service. GG positions are usually found in Defense Civilian Intelligence Personnel System (DCIPS) positions which are considered Excepted Service Positions. There is a bit more flexibility in the hiring of GG positions.
How are locality pay rates determined?
Locality pay is a localized pay rate for the federal workforce. Each locality pay is determined by the cost of labor as measured by the Bureau of Labor Statistics (BLS). BLS conducts locality pay surveys in a number of geographic areas, with survey data representing non-federal salaries (including state and local) at distinct levels of work.
What is federal locality pay?
Locality pay means supplemental locality-based payments in addition to the rate of basic pay that apply in the 48 contiguous States in areas where non-Federal pay exceeds Federal pay by more than 5 percent.
