Federal General Schedule pay is set by grade (1 to 15) and step (1 to 10), plus a locality percentage for where you work; the 2026 raise was 1.0 percent with no locality increase, and the 2027 raise is decided through the President's pay plan, any action by Congress, and an executive order usually signed in December.
Federal pay can look like a spreadsheet designed to keep people guessing. Grades, steps, locality areas, special rates, pay caps, and a raise that seems to be announced, debated and re-announced every year. If you have ever tried to explain your own salary to a family member, you know the feeling.
Under all the tables, the system is built from three plain parts. Your grade reflects the level of the job. Your step reflects time and performance in that grade. Your locality percentage reflects what it costs to hire in your area. Multiply them together and you have your salary.
Think of it like a building. The grade is the floor you work on. The step is how far down the hallway you have walked. Locality is the city the building stands in. The annual raise lifts the whole building a little each year, when Congress and the President agree to lift it.
This guide explains each part, the 2026 raise, how the 2027 raise is being set, the Federal Wage System for trades jobs, and why your pay matters so much for your pension. It is general education from FFEBA, an education organization; your agency's HR office and your Leave and Earnings Statement are the final word on your pay.
01How does the General Schedule pay system work?
The General Schedule (GS) covers most white-collar federal jobs and sets pay by grade, from GS-1 to GS-15, and by step, from 1 to 10 within each grade. Your base pay comes from OPM's GS table, and locality pay is added on top.
- GradeThe level of the position, from GS-1 to GS-15, based on the duties and qualifications required.
- StepTen pay levels within each grade. You advance through steps with time and acceptable performance.
- Base payThe GS table amount for your grade and step, before locality.
- Locality payA percentage added to base pay for your duty station's locality pay area.
- Basic payBase pay plus locality pay. This is the figure used for your TSP percentage and your retirement high-3.
Here is what the 2026 base table looks like at one grade, so you can see how the steps space out:
| GS-12, 2026 base pay | Annual |
|---|---|
| Step 1 | $76,463 |
| Step 3 | $81,561 |
| Step 5 | $86,659 |
| Step 7 | $91,757 |
| Step 10 | $99,404 |
Source: OPM Salary Table 2026-GS, incorporating the 1% General Schedule increase, effective January 2026 (retrieved 2026-07-05). Each step at GS-12 is worth $2,549 in base pay. The full table for every grade and step is on our GS pay table page.
02How do GS step increases work?
You move up one step after serving a required waiting period at an acceptable level of performance: 52 weeks for each of steps 2, 3 and 4; 104 weeks for steps 5, 6 and 7; and 156 weeks for steps 8, 9 and 10 (OPM, retrieved 2026-10-11). At that pace, step 1 to step 10 takes 18 years.
- Within-grade increases (WGIs) are automatic if your performance is at an acceptable level. A supervisor can deny one for poor performance.
- Quality step increases (QSIs) give an extra step for outstanding performance. A QSI usually does not reset the timing of your next regular step (OPM, retrieved 2026-10-11).
- Extended unpaid time can delay a step. Non-pay status beyond a set amount extends the waiting period.
- Promotions change your step. When you move up a grade, your step in the new grade is set by a rule designed to give you a meaningful raise, so you may not land at step 1.
03What is locality pay and how much is it?
Locality pay is a percentage added to your GS base pay based on your duty station, meant to narrow the gap between federal and non-federal pay in each area. OPM's 2026 table lists 58 locality entries, from 17.06 percent for the Rest of U.S. area up to 46.34 percent for San Jose-San Francisco-Oakland (OPM, retrieved 2026-07-05).
| Locality area, 2026 | Locality percentage |
|---|---|
| Rest of U.S. | 17.06% |
| Denver-Aurora, CO | 30.52% |
| Washington-Baltimore-Arlington, DC-MD-VA-WV-PA | 33.94% |
| Houston-The Woodlands, TX | 35.00% |
| San Jose-San Francisco-Oakland, CA | 46.34% |
Source: OPM 2026 General Schedule locality list (retrieved 2026-07-05). Locality is based on your official duty station, which for teleworkers is generally the location of the worksite they report to regularly, not wherever they happen to log in.
Worked example (educational estimate on the assumptions shown). A GS-12, step 5 employee has 2026 base pay of $86,659. In the Rest of U.S. area (17.06 percent), that is about $101,443 a year. In the Washington-Baltimore area (33.94 percent), the same grade and step is about $116,071. The calculation is base pay times one plus the locality percentage; OPM's official locality tables are the final figures, and pay at the top of the scale is limited by a statutory cap.
Your record, not our example
Want this run on your own numbers?
A Federal Retirement Consultant (FRC) works through your own records with you 1:1. The review is free and nothing is booked until you choose a time.
04What was the 2026 federal pay raise?
The 2026 GS pay raise was 1.0 percent, applied to base pay, with a 0.0 percent locality increase, effective the first pay period beginning on or after January 1, 2026 (January 11, 2026 for most employees), under Executive Order 14368 signed December 18, 2025 (USDA National Finance Center bulletin, retrieved 2026-10-11). OPM's 2026 tables incorporate that 1 percent increase (OPM, retrieved 2026-07-05).
Because locality percentages were not increased, each area's percentage stayed where it was in 2025, and the whole raise came through the base table. Certain law enforcement employees received a larger 2026 increase through separate pay tables.
05How is the 2027 federal pay raise set?
The federal pay raise for 2027 is set through a yearly sequence: a formula in the Federal Employees Pay Comparability Act, the President's alternative pay plan if the President chooses not to use the formula, possible action by Congress, and a final executive order. As of October 11, 2026, the 2027 raise is not final.
- 01
The formula
By law, the base increase is tied to private-sector wage growth as measured by the Employment Cost Index, minus half a percentage point, and locality increases are calculated separately by the President's Pay Agent.
- 02
The alternative plan (by the end of August)
The President can send Congress an alternative pay plan with a different figure, citing economic conditions or national emergency. For 2027, the plan sent in August 2026 proposed no across-the-board or locality increase for most civilian employees, with a separate increase for certain law enforcement personnel (Federal News Network, retrieved 2026-10-11).
- 03
Congress may act
Congress can set a different raise in an appropriations bill or other law. If it does not, the President's plan generally stands.
- 04
The executive order (usually December)
The President signs an order with the final pay tables, and OPM publishes them.
- 05
The raise takes effect in January
The new rates start with the first full pay period of the year.
We update this section when the 2027 figure is final. A pay raise is separate from the retiree COLA, which follows inflation by formula; see our COLA guide for how 2027 retiree adjustments are set.
06Why does your pay matter for retirement?
Your pay drives two big retirement numbers: your FERS or CSRS annuity, through your high-3, and your TSP, through the percentage you and your agency contribute. Every raise, step and promotion feeds both.
Your high-3 is the highest average basic pay you earned over any three consecutive years of service (OPM, retrieved 2026-07-05). Basic pay includes locality pay, but generally not overtime, bonuses or awards. Under FERS, your annuity is generally 1 percent of your high-3 for each year of service, or 1.1 percent if you retire at 62 or later with at least 20 years.
Worked example (educational estimate on the assumptions shown). Two employees each retire at 62 with 25 years of service. One has a high-3 of $100,000; the other moved to a higher-locality area for the last three years and has a high-3 of $110,000. At 1.1 percent per year of service, their first-year annuities are about $27,500 and $30,250 before any survivor reduction. The difference comes entirely from three years of pay. The figures are hypothetical; see the FERS annuity guide for the full rules and the FERS pension estimator to try your own numbers.
The last three years of your career count more toward your pension than any other three.
On the TSP side, a raise automatically increases the dollars behind your contribution percentage and your agency's 5 percent. The TSP guide covers the match and the 2026 limits.
07What is the WG pay scale?
The WG (Wage Grade) schedule is part of the Federal Wage System, which pays federal trade, craft and labor employees such as mechanics, electricians and maintenance workers. Instead of one national table plus locality, WG pay is set by local wage surveys in each wage area, so the same WG grade pays different amounts in different areas.
- Grades and steps. WG jobs have grades based on skill level, and each WG grade has five steps rather than ten.
- Local surveys. Wage rates are based on surveys of private-sector pay for similar work in the local wage area.
- Raises are often tied to the GS raise. Congress has frequently limited Federal Wage System increases to match the GS increase for the area in a given year.
- Supervisors and leaders. WS (supervisor) and WL (leader) schedules sit alongside WG with their own rates.
- Retirement works the same way. For FERS or CSRS, your high-3 is your highest three consecutive years of basic pay, whatever the pay system.
08How do promotions change GS pay?
When you are promoted to a higher GS grade, your new step is set so that your pay increases by at least the value of two steps in your old grade, and you land on the lowest step in the new grade that meets that test. That often means you start above step 1.
A promotion also restarts your waiting period for the next step increase in the new grade. Over a career, the combination of promotions, steps, locality and annual raises builds the high-3 you retire on, and the timing of a final promotion or relocation can be a meaningful part of your retirement plan.
Free benefits review
Where are you in your federal career?
- 01More than 5 years from retirement
- 021 to 5 years from retirement
- 03Less than a year from retirement
- 04Already retired
- 05Newer to federal service
- 06Not sure yet
Pick one to start your match: five short questions, free, no obligation.
09Moving forward with your pay and retirement
Your pay is the engine of your federal retirement: it sets your high-3, it sets your TSP contributions and match, and it shapes your Social Security record. Understanding grades, steps, locality and raises helps you see how a promotion, a move or another year of service changes your retirement numbers. The full 2026 tables are on our GS pay table page, and the FERS pension estimator gives an educational estimate of your annuity on assumptions you enter; it is not a promise of any benefit amount.
FFEBA is an education organization. If you want someone to look at your own numbers, we can match you with a Federal Retirement Consultant (FRC), a professional trained on federal benefits. The FRC designation is listed with FINRA. The first review is free, nothing is booked until you choose a time, and you are never obligated to work with anyone we introduce. Get matched with an FRC.
10Questions federal employees ask
What was the federal pay raise for 2026?
The 2026 General Schedule raise was 1.0 percent across the board with no locality increase, effective the first pay period beginning on or after January 1, 2026 (January 11, 2026 for most employees), under Executive Order 14368 signed December 18, 2025 (USDA National Finance Center, retrieved 2026-10-11). Certain law enforcement employees received a larger increase.
Will federal employees get a raise in 2027?
As of October 11, 2026, the 2027 raise is not final. The President's alternative pay plan, sent to Congress in August 2026, proposed no across-the-board or locality increase for most civilian employees (Federal News Network, retrieved 2026-10-11). Congress can set a different figure, and the final number is normally set by executive order in December.
How long does it take to reach step 10?
With fully successful performance, it takes 18 years to go from step 1 to step 10 of a GS grade: 52 weeks for each of steps 2 to 4, 104 weeks for steps 5 to 7, and 156 weeks for steps 8 to 10 (OPM, retrieved 2026-10-11). Quality step increases can speed this up.
What is locality pay?
Locality pay is a percentage added to GS base pay based on where your duty station is. Each locality area has its own percentage; in 2026 they range from 17.06 percent for the Rest of U.S. area to 46.34 percent for San Jose-San Francisco-Oakland in OPM's table (OPM, retrieved 2026-07-05).
Does locality pay count toward my high-3?
Yes. Your high-3 is based on basic pay, which includes locality pay but generally excludes overtime, bonuses and awards. That is why a move to a higher-locality area late in a career can raise a pension.
What is the WG pay scale?
WG is the Federal Wage System schedule for trade, craft and labor jobs. WG pay is set by local wage surveys in each wage area rather than by the national GS table, and each WG grade has five steps.
Reviewed by the FFEBA education team. Last reviewed October 2026.
Sources
- U.S. Office of Personnel Management, 2026 General Schedule base table (Salary Table 2026-GS, incorporating the 1% General Schedule increase), retrieved 2026-07-05
- U.S. Office of Personnel Management, 2026 General Schedule pay tables landing page, retrieved 2026-07-05
- U.S. Office of Personnel Management, fact sheet: within-grade increases, retrieved 2026-10-11
- U.S. Office of Personnel Management, fact sheet: quality step increase, retrieved 2026-10-11
- USDA National Finance Center bulletin, 2026 annual pay raise (Executive Order 14368), retrieved 2026-10-11
- Federal News Network, Trump officially plans for civilian federal pay freeze in 2027 (August 2026), retrieved 2026-10-11
- U.S. Office of Personnel Management, FERS computation (high-3 average salary, via FFEBA FAQ data), retrieved 2026-07-05
Every government figure on this page carries its source and retrieval date. Worked examples are educational estimates on the assumptions shown, not a projection of any person's benefit. FFEBA is an education organization, not a financial advisor.
