Feds Redraw Wage Maps for 10% of Wage System Workers
Published Date: 1/21/2025
Rule
Summary
Starting October 1, 2025, about 10% of federal workers paid under the Federal Wage System will see changes in how their local pay areas are defined. This update makes wage area rules more like those used for General Schedule workers, aiming for fairer and clearer pay zones. Some wage schedules and surveys will shift gradually, so affected employees should watch for updates that might impact their pay.
Analyzed Economic Effects
6 provisions identified: 1 benefits, 2 costs, 3 mixed.
Federal Wage Area Rules Changed
If you are an appropriated‑fund Federal Wage System (FWS) employee, the Office of Personnel Management changed the rules used to define local FWS wage areas so they are more like General Schedule locality rules. This change affects around 10% of the FWS workforce and is effective October 1, 2025.
Most Affected Employees See Pay Change
OPM expects an initial implementation to cause wage rate increases for most affected FWS employees, but some employees will be moved to lower wage schedules and may have pay reduced unless covered by pay retention rules. For example, employees in Monroe County, PA moving to the New York wage area could see changes ranging from about $0.49 per hour (WG‑01) up to $7.85 per hour (WG‑15) based on current levels.
When Pay Changes Take Effect
Pay changes based on the new wage area boundaries take effect on the first day of the first pay period beginning on or after October 1, 2025. Local wage survey area changes will be staggered and occur at various times across fiscal years 2026 through 2028.
Existing Special Rates Remain Protected
The rule states there is no basis to cancel existing special rates. If an employee paid a special rate moves to a different regular wage schedule and the regular schedule rate is higher, the employee will be entitled to the higher regular schedule rate.
100‑Employee County Survey Rule
The rule reiterates that OPM will include in local wage survey areas any county that has 100 or more FWS employees. For example, Yuma County and Calhoun County were discussed with survey‑area timing tied to when counties meet that 100‑employee threshold.
Puerto Rico Wage Area Not Changed
OPM states that the revised criteria will not change the Puerto Rico FWS wage area boundaries or pay; Puerto Rico wage area boundaries and pay remain as currently defined.
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Key Dates
Department and Agencies
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