Meanwhile, employees at step 10 within the Raleigh, North Carolina; and Buffalo, New York, locality regions joined the pay cap club for the first time this year. As has been the trend for the last several years, federal employees who work in generally high-cost regions of the country appear to be impacted the most by salary compression. Pay compression is at its worst in the San Francisco, California, locality area where the federal pay ceiling extends all the way down to step 5s within the region.
Pay compression in will affect federal employees in a total of 25 separate locality pay areas, nearly half of the 53 established regions. The following chart shows the number of steps within the 15 grade level that are impacted by pay compression over the last five years. Louis, Missouri; and Albany, New York, will continue to receive a full pay raise in Sign up for our daily newsletters so you never miss a beat on all things federal.
Salary compression has a variety of impacts for high-ranking GSs. But pay compression over time could also have impacts on long-serving career employees and their annuities, particularly when calculating the average of their highest three years of salaries. This employee is years-old, entered government in , accumulated 30 years of federal service and now plans to retire in January For the sake of convenience, assume this employee spent the last three years of her career as a GS, step 10 in the same locality pay area, and her salaries during those years are the highest of her federal tenure.
Nicole Ogrysko is a reporter for Federal News Network focusing on the federal workforce and federal pay and benefits. Follow nogryskoWFED. Listen Live Schedule Sports. Artificial Intelligence. Ask the CIO. Big Data. CIO News. Cloud Computing. IT Modernization. On DoD. Defense Industry. Agency Oversight. When you receive a paygrade promotion, you will maintain your previously attained step. Read more about how step increases work. We value your feedback!
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