Understanding Federal Pay (for Federal Job Seekers)

The following post takes a closer look at Understanding Federal Pay (for Federal Job Seekers).

Salary is one of the most important (and potentially confusing) variables to understand when applying to federal jobs, involving multiple different pay systems, grades, steps, and wage schedules.

Read: Documents Needed for Applying to Federal Jobs

Related: Navigating Major Changes to the Federal Resume

Unlike in the private sector where compensation is left to each individual company, federal agencies are required to follow standardized rules when offering compensation to federal employees.

Here’s what you need to know.

General Schedule

The General Schedule (GS) is the main way most civilian workers in the federal government are paid.

The GS system is designed to set fair and consistent salaries. It is organized by grades and steps. There are 15 grades, starting at GS-1 and going up to GS-15. Lower grades earn less and higher grades earn more. Each grade has a pay range, with a minimum and maximum earning potential at that level.

Within each grade, there are 10 steps. Step 1 is the lowest pay for that grade, and Step 10 is the highest. Most new federal employees start at Step 1. Over time, employees can move up the steps (based on performance), which increases pay without changing the employee’s job title or grade.

Not all federal workers are paid under the GS system. Some jobs use other pay systems. However, the GS system is the predominant method that covers most civilian federal employees.

Below is a screenshot from a Reddit forum discussing the General Schedule in more detail.

How Federal Salaries Are Set

You may wonder how salaries for federal employees are determined. In short, salaries are not set by individual managers. Rather, there are government-wide rules and pay tables that govern the process.

When a new position is created, it gets assigned a GS grade reflecting the level of responsibility. The salary is determined by many factors including the job duties, geographic location, and more.

Locality Pay

Does geographic location have an impact on salary? In short, yes. This refers to ‘locality pay’ which is extra pay (added on top of base GS pay) based on where an employee works.

Locality pay makes it possible for two people with the same GS grade (and step) to earn different salaries (based on their location). For example, federal employees in high-cost regions (large cities) usually earn more than employees with the same job in lower-cost areas.

Locality pay helps ensure pay adjustments are fair and applied consistently across the country.

Hourly Pay vs. Salary

It’s worth noting that not all federal jobs are paid using a salary. Some federal employees are paid by the hour instead. These roles are often hands-on, trade, or labor-focused positions.

Hourly federal jobs still follow standardized pay rules. Wages are set based on the type of work, skill level, and experience required. Like salaried roles, hourly pay rates are published and follow government-wide schedules (rather than being negotiated individually).

The Federal Wage System (FWS)

The Federal Wage System (FWS) is the main pay system used for hourly federal workers. It applies to many trade, craft, and labor jobs such as maintenance, construction, and equipment operation.

Under the FWS, pay rates are based on local private-sector wages for similar work. Instead of grades and steps, the FWS uses wage grades and steps that reflect skill level and experience.

Like other federal pay systems, FWS wages follow standardized rules and published schedules. Individual managers do not set pay rates, which helps keep compensation fair and consistent.

Other Federal Pay Tables

In addition to the pay systems already discussed, there are several special pay tables used for specific roles or groups of federal employees.

For example, Law Enforcement Officer (LEO) pay schedules apply to certain federal law enforcement positions. There is also the Wildland Firefighter (GW) General Schedule, which applies to some federal firefighting and emergency response roles. Other examples include Executive and Senior Level pay tables for high-level leadership positions, as well as Special Rate Tables used for hard-to-fill occupations.

These pay tables are designed to address unique job requirements while still following standardized federal pay rules. Click here for a complete list of federal pay tables and detailed explanations.

In Conclusion

In conclusion, this article is intended to help clarify how federal pay works. While the system can appear complex, understanding its structure allows you to better evaluate job announcements, compare opportunities, and set realistic expectations when applying for federal roles.

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