The Office of Personnel Management (OPM) is responsible for setting and administering the pay scales for federal employees. The OPM salary schedule is updated annually, and the 2025 salary schedule is expected to be released in the fall of 2024. The 2025 salary schedule will likely include a general pay increase for all federal employees, as well as locality pay adjustments for employees in certain geographic areas.
In addition to the general pay increase and locality pay adjustments, the 2025 salary schedule may also include changes to the pay structure for certain occupations. For example, the OPM may adjust the pay rates for certain occupations that are in high demand or that require specialized skills. The OPM may also make changes to the pay structure for certain occupations that have experienced a decline in demand or that no longer require specialized skills. Overall, the 2025 salary schedule is expected to reflect the current labor market conditions and the need to attract and retain a qualified workforce.
Factors Influencing OPM Salary Adjustments
The Office of Personnel Management (OPM) considers several factors when making salary adjustments for federal employees. These include:
Local Pay Comparability
OPM compares federal salaries to salaries in the private sector and local government in each locality. This is to ensure that federal employees are paid fairly compared to their non-federal counterparts. The Federal Salary Council (FSC) is responsible for conducting local pay comparability studies.
The FSC collects salary data from private sector and local government employers in each locality. This data is then used to calculate a weighted average salary for each federal job series and grade in each locality. The OPM then uses these weighted average salaries to set federal salaries for each locality.
General Schedule (GS) Pay Scale
The GS pay scale is used to determine the salaries of most federal employees. The GS pay scale has 15 grades, with each grade divided into 10 steps. The step that an employee is paid at is based on their experience and performance.
The OPM adjusts the GS pay scale each year to keep up with rising inflation. The OPM also makes adjustments to the GS pay scale when necessary to ensure that federal employees are paid fairly compared to their non-federal counterparts.
Recent Federal Pay Adjustments
The OPM has made several significant salary adjustments in recent years:
| Year | Pay Raise | |
|---|---|---|
| 2023 | 4.6% | |
| 2022 | 4.1% | |
| 2021 | 3% | |
| 2020 | 3.1%Regional Variations in OPM Salaries———-The Office of Personnel Management (OPM) establishes salary rates for federal employees based on a variety of factors, including the geographic location of their duty station. This is because the cost of living can vary significantly from one region to another, and OPM wants to ensure that federal employees are paid fairly and equitably regardless of where they live.The OPM divides the United States into 15 geographic regions, each with its own set of salary rates. The following table shows the 15 regions and the corresponding locality pay areas. | Region |
| Region | Locality Pay Areas | |
| 1 | New England | |
| 2 | New York City | |
| 3 | Rest of New York | |
| 4 | New Jersey | |
| 5 | Philadelphia | |
| 6 | Rest of Pennsylvania | |
| 7 | Washington, D.C. | |
| 8 | Rest of Maryland | |
| 9 | Rest of Virginia | |
| 10 | Atlanta | |
| 11 | Rest of Georgia | |
| 12 | Dallas | |
| 13 | Rest of Texas | |
| 14 | Rest of California | |
| 15 | Hawaii | |
| Year | ECI Growth | Projected OPM Salary Increase |
| 2023 | 4.8% | 3.8% - 4.6% |
| 2024 | 3.5% | 2.7% - 3.3% |
| 2025 | 2.5% | 2.0% - 2.6% |
| Position | OPM Salary | Private Sector Salary |
| Administrative Assistant | $35,000 - $50,000 | $40,000 - $60,000 |
| Accountant | $50,000 - $75,000 | $60,000 - $90,000 |
| Software Engineer | $75,000 - $100,000 | $90,000 - $120,000 |
| Manager | $100,000 - $150,000 | $120,000 - $180,000 |
| Grade | Annual Salary Range | |
| GS-1 | $20,669 - $26,981 | |
| GS-2 | $22,178 - $29,038 | |
| GS-3 | $23,823 - $31,290 | |
| GS-4 | $25,603 - $33,683 | |
| GS-5 | $27,506 - $36,268 | |
| GS-6 | $29,506 - $38,949 | |
| GS-7 | $31,634 - $41,766 | |
| GS-8 | $33,867 - $44,702 | |
| GS-9 | $36,241 - $47,771 | |
| GS-10 | $38,743 - $51,026 | |
| GS-11 | $41,374 - $54,404 | |
| GS-12 | $44,158 - $57,950 | |
| GS-13 | $47,072 - $61,665 | |
| GS-14 | $50,130 - $65,511 | |
| GS-15 | $53,336 - $69,508 | |
| Grade Level | Average Salary | |
| GS-1 | $38,850 | |
| GS-2 | $44,500 | |
| GS-3 | $51,100 | |
| GS-4 | $58,700 | |
| GS-5 | $67,600 | |
| GS Grade | Salary Range | |
| GS-5 | $37,228 - $50,145 | |
| GS-7 | $45,259 - $61,231 | |
| GS-9 | $54,672 - $73,925 | |
| GS-11 | $65,578 - $89,171 | |
| GS-13 | $80,029 - $108,363 |