2025 GS Pay Scale Increase - Federal Pension Advisors

October 4, 2024

Guide to 2025 GS Pay Scale for Federal Employees

President Biden has announced a federal pay raise for 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%.

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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.

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The official 2025 pay 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.

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The 2.0% average pay increase was first introduced in March when the Biden administration released its proposed budget for Fiscal Year 2025 and was subsequently confirmed in an alternative pay plan letter from the President’s staff on August 30.

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Estimated 2025 GS Pay Scale Increase For Federal Employees

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Estimated 2025 GS Pay Scale Increase For Federal Employees

2024 Estimated 2025 GS Pay Scale Increase

Grade	Step 1	Step 2	Step 3	Step 4	Step 5	Step 6	Step 7	Step 8	Step 9	Step 10
1	$22,360	$23,110	$23,853	$24,594	$25,336	$25,770	$26,506	$27,247	$27,277	$27,970
2	$25,142	$25,740	$26,573	$27,277	$27,585	$28,397	$29,208	$30,020	$30,831	$31,643
3	$27,434	$28,348	$29,262	$30,176	$31,091	$32,005	$32,919	$33,834	$34,748	$35,662
4	$30,795	$31,821	$32,847	$33,873	$34,899	$35,926	$36,952	$37,978	$39,004	$40,030
5	$34,454	$35,602	$36,750	$37,899	$39,047	$40,195	$41,343	$42,491	$43,639	$44,788
6	$38,407	$39,687	$40,968	$42,248	$43,529	$44,809	$46,089	$47,370	$48,650	$49,931
7	$42,679	$44,102	$45,525	$46,948	$48,371	$49,793	$51,216	$52,639	$54,062	$55,484
8	$47,265	$48,840	$50,416	$51,991	$53,566	$55,142	$56,717	$58,292	$59,868	$61,443
9	$52,205	$53,945	$55,685	$57,425	$59,165	$60,905	$62,645	$64,385	$66,125	$67,865
10	$57,489	$59,405	$61,321	$63,237	$65,153	$67,069	$68,985	$70,901	$72,817	$74,733
11	$63,163	$65,268	$67,373	$69,478	$71,584	$73,689	$75,794	$77,899	$80,004	$82,110
12	$75,706	$78,230	$80,753	$83,276	$85,799	$88,322	$90,846	$93,369	$95,892	$98,415
13	$90,025	$93,026	$96,027	$99,028	$102,030	$105,031	$108,032	$111,033	$114,034	$117,035
14	$106,382	$109,929	$113,475	$117,021	$120,567	$124,114	$127,660	$131,206	$134,753	$138,299
15	$125,133	$129,303	$133,474	$137,645	$141,816	$145,986	$150,157	$154,328	$158,498	$162,669

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How Does 2025 gs pay scale with locality Affect 2025 GS Pay Scale Increase?

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Locality pay is an additional amount added to the base salary of federal employees who work in regions with a higher cost of living. This adjustment ensures that federal employees receive competitive compensation, regardless of where they are located.

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Here is how locality pay affects the 2025 GS pay scale increase:

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.

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What Are The Differences Between Base Pay and Adjusted Pay Rates?

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Base pay and adjusted pay rates are two key components of a federal employee's compensation package. Here's a breakdown of the differences:

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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.

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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.

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What are the New Locality Pay Areas for 2025?

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The 2025 gs pay scale 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.

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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.

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How Are GS Pay Grades Structured?

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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.

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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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