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October 4, 2024
Guide to 2025 GS Pay Scale for Federal Employees
President Biden has announced a federal pay raise 2025, formalising a plan to provide civilian federal workers with an average pay increase of 2%. This represents a significant reduction compared to the 5.2% increase in 2024 and 4.6% in 2023. In a letter to congressional leaders dated August 30, Biden detailed that federal employees will receive a 1.7% boost to their base pay, along with an average 0.3% increase in locality pay, resulting in an overall average increase of 2%.
Below is an estimated 2025 GS pay scale increase table for 2025, created by taking the 2024 GS table and applying the anticipated 1.7% salary increase, which will take effect at the beginning of the next calendar year.
The official federal pay raise 2025 table will be published by the Office of Personnel Management (OPM) in December, coinciding with the President's typical signing of an executive order to formally enact the upcoming year’s federal pay raise. You can checkout the 2025 irmaa brackets, as the IRMAA (Income Related Monthly Adjustment Amount) brackets and the GS (General Schedule) pay scale are connected in determining the amount of Medicare premiums for federal employees and retirees.
NFFE Calls for Urgent Pay Raise for Federal Employees
Washington, D.C. – The National Federation of Federal Employees (NFFE) is urging Congress to pass the Federal Adjustment of Income Rates (FAIR) Act to address the significant increase in Federal Employee Health Benefits Program (FEHB) premiums.
A Significant Pay Cut
In 2025, civil servants and retirees will face a substantial increase in healthcare costs, with premiums rising by an average of 17.5%. This translates to a 13.5% increase in healthcare costs, a 3% increase in dental, and a 1% increase in vision coverage.
NFFE President Randy Erwin expressed deep concern over this development, stating, "Even without considering inflation and cost-of-living increases, the new FEHB rates effectively amount to a pay cut for most civil servants." He further emphasized the existing pay gap between federal and private sector employees, noting that federal workers lag behind by 27.5%.
The Impact on Federal Employees
The rising healthcare costs will disproportionately affect mid-level and lower-level federal employees. On average, self-covered employees will pay an additional $422, families will pay nearly $700 more, and self-plus-one employees will pay an extra $877 in 2025.
NFFE's Demands
To mitigate the impact of these rising costs, the NFFE is calling for two key actions:
- Increase the Proposed Pay Raise: The NFFE urges the White House to increase the proposed 2% pay raise for FY25.
- Pass the FAIR Act: The FAIR Act would adjust income rates by 7.4%, reflecting the Employee Cost Index and a 3.4% increase in locality pay.
Erwin concluded by emphasizing the importance of fair compensation for federal employees. He argued that increasing federal wages would stimulate the economy and benefit communities nationwide.
Estimated 2025 GS Pay Scale Increase For Federal Employees
How Does 2025 gs Pay Scale With locality Affect 2025 GS Pay Scale Increase?
The 2025 GS pay scale with locality is an important component of federal employee compensation. It provides a base salary for employees based on their grade level and step, and then adds a locality adjustment to account for the higher cost of living in certain areas. This ensures that federal employees receive competitive compensation, regardless of where they are located.
Here is how locality pay affects the gs pay scale 2025 with locality:
- Increase in Total Compensation: In areas with high locality pay rates, federal employees' overall compensation in 2025 will be considerably higher than the standard GS pay scale.
- Variation Across Locations: Locality pay rates vary significantly by location, with some areas receiving much higher rates than others.
- Impact on Retirement Benefits: Locality pay is generally factored into the calculation of retirement benefits, such as Federal Employees Retirement System (FERS) pensions.
How to Calculate Your gs pay scale 2025 with locality
1. Determine Your Grade and Step: Your position within the federal government will determine your grade and step.
2. Consult the 2025 GS Pay Table: This table outlines the base salary for each grade and step.
3. Identify Your Locality Pay Area: Your specific location will determine the locality pay adjustment that will be added to your base salary.
4. Add Locality Pay to Base Salary: Add the locality pay adjustment to your base salary to determine your total annual salary.
What Are The Differences Between Base Pay and Adjusted Pay Rates?
Base pay and adjusted pay rates are two key components of a federal employee's compensation package. Here's a breakdown of the differences:
Base Pay:
- Core Salary: This is the fundamental salary determined by the employee's grade level and step within the General Schedule (GS) pay scale.
- Determined by Grade and Step: The base pay increases as the employee progresses through the GS pay scale.
- Foundation for Other Pay Components: Base pay serves as the foundation for calculating other pay components such as locality pay, overtime pay, and performance awards.
Adjusted Pay Rates:
- Base Pay Plus Other Factors: Adjusted pay rates incorporate base pay along with other factors that can increase or decrease an employee's total compensation.
- Locality Pay: This is the most common factor that adjusts base pay. It is added to compensate for variations in the cost of living across different geographic areas.
- Other Adjustments: Other factors that can adjust pay rates include overtime pay, night differential pay, hazardous duty pay, and performance awards. And in this blow we have made 2025 federal pay raise table to make this more cleare.
What are the New Locality Federal Pay Raise 2025?
The federal pay raise 2025 increase may introduce additional locality pay areas to better align with the economic realities of various regions. These areas are determined through comprehensive studies by the Office of Personnel Management (OPM), which assess factors such as housing costs, transportation expenses, and general living conditions. Adding new locality pay areas ensures that federal employees in high-cost regions receive the necessary salary adjustments. And these 2025 federal pay raise with locality you can also check it out on official GOV website.
The Federal Salary Council has recently recommended expanding existing locality areas, which could result in 15,000 federal employees seeing an increase in their salaries. If approved by the government’s pay agent, Wyandot County, OH, would be included in the Columbus, OH locality, and Yuma County, AZ, would join the Phoenix, AZ locality. These recommendations, however, do not establish entirely new locality pay areas. You can also checkout gs pay scale 2024 dc.
How Are GS Pay Grades Structured?
GS pay grades are structured based on the level of responsibility and expertise required for a particular job. They range from GS-1 to GS-15, with higher grades corresponding to more complex and demanding positions. Which you have seen above in 2025 federal pay raise table.
Here's a breakdown of how GS pay grades are structured:
- GS-1 to GS-5: These grades typically encompass entry-level and lower-level professional and technical positions.
- GS-6 to GS-10: These grades cover mid-level professional and technical roles, with increasing levels of responsibility.
- GS-11 to GS-15: These grades include senior-level professional and technical positions that require specialized knowledge and experience.
Within each grade, some steps determine the specific salary. Employees usually advance through these steps over time based on performance and seniority.
It’s important to note that the salary for each grade and step can vary based on the locality pay area. Federal employees in regions with a higher cost of living receive additional compensation to help offset these expenses.
Overall, the GS pay grade structure offers a standardized framework for determining salaries and facilitating career progression within the federal government.
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