Understanding Federal Salaries

 

Uncle Sam has worked very hard to create a system that ensures employees doing similar work are similarly compensated.  Pay is tightly tied to what one does, which is clearly spelled out in a job description.

 

In some cases, the person who interviews you for a particular job has some ability to impact your base salary.  In addition, in an effort to effectively compete with the private sector, there may be add-ons available in the form of premium pay, bonuses or allowances to put a little more heft into your future paycheck.

 

 

Most white collar civil service jobs are set on the General Schedule, or GS pay scale.  The GS pay scale ties experience required to do the job with the job’s level of responsibility to grades and steps within grades.  Higher grades mean a higher salary.

 

 

Education:   Someone with a bachelor’s degree usually starts at the GS-5 or GS-7 level.  Entry level for someone with a Master’s degree is generally at the GS-9 level.

 

Experience:   Agencies look at your work experience to determine a grade level for which you would be qualified.  Although it is best to get a position at as high a grade as possible, don’t rule out applying for, and accepting, career ladder positions.

 

Where You Live:   Almost 85 percent of Federal jobs are located outside the Washington, DC area; although, jobs in the Washington, DC area generally have the highest average grade compared to the rest of the United States.  Pay is adjusted so that identically graded positions in areas where the cost of living is higher than average receive more pay.  This is commonly known as locality pay.

 

 

Employees on the GS scale or equivalent receive cost-of-living pay adjustments every year.  This usually occurs in January, and is applied equally to most GS employees.  Also, there may be an additional annual increase based on pay comparability laws (which must be approved by Congress each year).

 

And, of course, another way that you can increase your salary is through promotions, e.g., obtaining a higher graded position.  Promotions are not automatic, and in most cases you must compete for them.  The better you perform in your job, the more likely you are to be able to earn a promotion.

 

 

Each job in the Federal government is assigned to a series, based upon the major duties of the position.  For example, the GS-0510 series includes many jobs related to Accountants and Supervisory Accountants, regardless of whether the job requires a specialization in systems accounting, staff accounting, or operating accounting.

 

Within each series are different grades.  The more complex the job gets, the higher the grade.  Conversely, trainees are lower graded than those performing more highly skilled work.

 

 

Every series is assigned to a particular pay schedule.  A pay schedule is a table that lists the salary or wage ranges for each grade, regardless of the series.  While there are many, many pay schedules, the GS (General Schedule) covers the vast majority of white-collar civilian occupations in the Federal system.

 

In our example above, you can tell the pay rate for the "Accountant” position will be found in the General Schedule, because a "GS" precedes the series number.

 

In specific urban areas, where the cost of living can be significantly higher, the entire general schedule is adjusted up.  These adjustments are referred to as locality pay.

 

 

A superior qualifications appointment is an appointment made at a rate above step 1 of the appropriate General Schedule (GS) grade because of the candidate's superior qualifications or the agency's need for the person’s services.  

 

A superior qualifications appointment may be made on appointment for the first time in the Federal service.  Oftentimes agencies don’t mention this possibility to individuals they want to hire, so it is up to you to bring up any salary requirements you have before you are brought on board in the position.

 

 

The Federal Wage System (FWS)  is a pay setting system that covers many WG (Wage Grade) or blue-collar positions.  About 10 percent of the Federal workforce is blue collar.  Employees in this system are paid by the hour.  

 

The goal of this system is to ensure that; if you are a Federal trade, craft or labor employee, your pay will be similar to the pay of others in Federal jobs like yours in your wage area, and it will be in line with the pay for similar private sector jobs.  

 

For example, if you are applying for a job as a pipe fitter in Denver, you can expect the hourly pay rate will be similar to what other pipe fitters in the Denver area are earning, regardless of their employer.  However, the rate may be quite different from what someone with your qualifications can earn in Washington, DC.

 

There are separate pay scales established each year for all occupations, so there are a variety of pay schedules for employees covered by the Federal Wage System.  Within each grade there are a series of "steps" that reflect a salary increase.

 

New employees normally start at step 1 of the grade at which they are hired.  GS and WG employees both receive periodic "step" increases as long as performance remains satisfactory and one has not reached the maximum step for his or her grade level.

 

 

The most common pay systems you are likely to encounter in the Federal service are GS and FWS; however, there are pay systems where the salary and grade structure might be different.

 

The Department of Defense and Department of Homeland Security have personnel rules approved by Congress that allow them to implement what is commonly known as pay-for-performance systems.

 

The Foreign Service, U.S. Postal Service, Veterans Health Administration, and Senior Executives also have alternative pay systems.  There may be others, so be sure to look at salary information listed on every vacancy announcement.

 

 

Allowances, bonuses and premium pay can have a significant impact on your earnings and take home pay.  Allowances and bonuses are money made available by agencies for employees in occupations where, without it, it would be difficult to keep the positions filled.  For example, allowances can be provided to all employees in positions with retention problems.

 

Recruitment or relocation bonuses are often noted on the vacancy announcement, and may be as high as 25% of the base pay.

 

Premium pay is additional salary earned to compensate for non-standard or difficult work schedules, long and unpredictable work hours.  Differentials and hazard pay fall under this heading.  Employees receive premium pay for overtime work when they are paid for the extra hours, as opposed to getting time off.

 

There are several situations when an employee may receive premium pay as a regular supplement to his or her paycheck.  For such situations, employees may receive additional pay on an annual basis, payable in equal increments in their bi-weekly pay check.  Law enforcement officers and firefighters, employees who regularly serve in a standby status and employees who must work "administratively uncontrollable overtime" on a regular basis most often receive premium pay.

 

Differentials are a special category of premium pay and are used to compensate employees because of unusual circumstances with regard to their working conditions or work schedules.  Some examples are pay for evening and night shifts, holiday pay, and pay for Sunday work.

 

A differential remains in place as long as the unusual circumstances continue.  Once the unusual circumstances end, the differential is no longer payable.  It is usually computed as a percentage of basic pay.

 

Certain GS employees are eligible for hazard pay, another special type of premium pay.  WG employees are similarly eligible to receive "environmental differential pay".  Hazard pay is paid "in addition to additional pay or allowances under other statutes."  The amount is substantial (often 25% of base pay) , and is offered as compensation for exposure to a vast range of different hazards, such as physical, psychological, or chemical.

 

 

Another benefit to Federal employment is that employees who contribute to the agency's mission above and beyond acceptable job performance can expect to receive recognition for their efforts.  That recognition can come in the form of cash awards, honorary awards, or time off the job without charge to leave.  

 

It is also possible to receive cash or other forms of recognition for suggesting or proposing changes in work operations that directly increase the efficiency or effectiveness of the operation.  Monetary awards for outstanding or exemplary performance are normally paid in a lump sum.