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New locality pay rates impact 33,300 employees

New locality pay rates impact 33,300 employees

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"Pay Rates Impact"

Recently, the public were given access to the 2024 GS Locality Pay Tables, showing locality pay rates determined by comparisons with local private sector wages. This system, while not considering the cost of living, aims to ensure fair pay in accordance with local private sector wages.

Four new localities have been defined and tested this year, broadening the boundaries of existing localities to include more workers. Approximately 33,300 employees are set to receive a pay rise because of this expansion. A variety of initiatives and systems have also been introduced to enhance professional development opportunities.

Updated pay rates have been introduced in cities such as Fresno, California; Reno, Nevada; Rochester, New York; and Spokane, Washington. Pay rates in these regions range from 5.25 to 5.46 and will come into effect at the beginning of the first full payroll cycle of the year, primarily on January 14.

Employees can expect the updated pay, which includes the new raise, for that specific payroll cycle. Adjusted payments are typically processed and distributed within 7 to 10 days from the pay cycle.

Expanding locality pay rates: fair compensation implications

The full details of the new pay scale will be sent out to all team members to clarify any confusion. A dedicated helpline has also been set up to deal with any personal queries or concerns about the updated pay.

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In December, an executive order was issued detailing the pay rates for each locality, based on the evaluation of pay gaps in more than 50 locations. Cities with significantly raised locality pay rates due to pronounced pay discrepancies included San Francisco, New York, Seattle, Washington, D.C., and Los Angeles. This order aims to address wage inequity and ensure fair compensation across all occupational levels.

Step-increase policies permit permanent General Schedule employees to progress unless they’ve received below-average performance evaluations. Wage-grade employees with satisfactory performance can proceed to the next step according to specific duration schedules based on their current step. Supervisors can also accelerate step increases for employees with excellent performance. Conversely, for those who do not meet the required performance standards, step increases may be delayed until there are visible improvements.

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