January 2025 Federal Pay Schedules Issue with 2% Raise
Published Date: 3/13/2025
Notice
Summary
Starting January 2025, most federal civilian employees will see their paychecks grow thanks to a 2% average raise—1.7% base pay bump plus extra locality pay based on where they work. This means more money in your pocket if you’re a General Schedule (GS) worker in one of 58 special pay areas across the U.S. and territories. The new pay rates kick in with the first pay period of 2025, so get ready for a nice boost!
Analyzed Economic Effects
8 provisions identified: 7 benefits, 1 costs, 0 mixed.
GS locality pay percentages up to 46.34%
General Schedule (GS) employees in the 58 locality pay areas receive locality payments for 2025 ranging from 17.06% to 46.34% applied to their scheduled annual rate of pay. These 2025 locality percentages are effective the first pay period beginning on or after January 1, 2025 (January 12, 2025).
SES pay range and high salaries set
For 2025 the Senior Executive Service (SES) minimum rate of basic pay is $150,160; the maximum SES rate is $225,700 for SES members covered by a certified performance appraisal system and $207,500 for those who are not. Agencies with certified performance systems may apply a higher aggregate pay limitation up to the Vice President's salary of $289,400 in 2025.
Administrative Law Judges pay increases
Rates of basic pay for administrative law judges (ALJs) are increased by 1.7% for 2025. The document lists AL-1 at $195,200, AL-2 at $190,500, and AL-3/A through AL-3/F ranging from $130,400 to $180,600 for 2025.
Federal civilian pay rises 2.0%
Most federal civilian employees receive an overall average pay increase of 2.0% for January 2025: a 1.7% across-the-board base pay increase plus locality pay increases costing about 0.3% of basic payroll. The increases take effect in the first pay period beginning on or after January 1, 2025 (January 12, 2025).
Executive Schedule gets 1.7% increase (no locality)
Executive Schedule (EX) rates are increased by 1.7% in 2025 (rounded to the nearest $100). By law, Executive Schedule officials are not authorized to receive locality payments.
Continuation of locality pay for ALJs and non-GS categories
OPM issued a memorandum continuing GS locality payments for ALJs and certain other non-GS employee categories in 2025. By statute, some pay systems (EX, SES, SL/ST and certain equivalents) are not authorized to receive locality payments, except certain grandfathered cases.
Contract Appeals Boards pay increase
Rates of basic pay for members of Contract Appeals Boards are increased by 1.7% in 2025 because those rates are calculated as a percentage of level IV of the Executive Schedule. The 1.7% increase is applied in 2025.
Pay freeze for Vice President and certain political appointees
The American Relief Act, 2025 continues a freeze on the payable pay rates for the Vice President and certain senior political appointees at existing rates through March 14, 2025. Future Congressional action will determine whether the pay freeze continues beyond March 14, 2025.
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