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This question is about salaries.
What is locality pay?
Locality pay is payment given to federal employees that are paid under the senior level, scientific, and professional pay systems.
In 1990, Congress passed the Federal Employee Pay Comparability Act (FEPCA), which was originally intended to eliminate what federal economists deemed to be growing pay discrepancies between non-federal and civil service salaries.
The law authorizes the full amount of pay necessary to reduce the pay discrepancies between federal and non-federal salaries in 47 broad locality pay areas down to 5%.
However, previous administrations have not followed the schedule of locality pay adjustments as FEPCA has authorized.
The guidance of the law stipulates that General Schedule employees be given a two-part pay adjustment each year. This includes base pay and locality pay adjustments.
Locality pay adjustments depend on where the employee works. The Federal Salary Council determined that statistics on employees pay in metropolitan areas was the best way to calculate locality pay.
Locality pay increases rely upon comparisons from the Bureau of Labor Statistics, which utilizes the National Compensation Survey to measure non-federal compensation in a specific labor market. They then compare this to federal pay for employees who do similar work in the same general location to determine locality pay.
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