link to page 1 
 
 
Updated December 30, 2021
Federal Locality-Based Comparability Payments for General 
Schedule Employees
The Federal Employees Pay Comparability Act of 1990 
Table 1. Federal Locality Pay Areas 
(FEPCA) authorizes locality-based comparability payments 
As of January 2022 
for General Schedule (GS) employees. (See 5 U.S.C. 
Alaska  
Indianapolis-Carmel-Muncie, IN  
§§5304, 5304a.) Locality pay implementation and 
Albany-Schenectady, NY-MA  
Kansas City-Overland Park-Kansas 
adjustment procedures are specified in the statute and 
City, MO-KS  
Office of Personnel Management (OPM) regulations. (See 5 
Albuquerque-Santa Fe-Las Vegas,  Laredo, TX  
C.F.R. Part 531, Subpart F.) 
NM  
Atlanta - Athens-Clarke County -  Las Vegas-Henderson, NV-AZ  
The locality pay procedures provide that payments are to be 
Sandy Springs, GA-AL  
made within each locality determined to have a 
Austin-Round Rock, TX  
Los Angeles-Long Beach, CA  
nonfederal/federal pay disparity greater than 5%. Bureau of 
Birmingham-Hoover-Tal adega, AL   Miami-Fort Lauderdale-Port St. Lucie, 
Labor Statistics (BLS) surveys compare the rates of GS pay 
FL  
with the rates of pay generally paid to nonfederal workers 
Boston-Worcester-Providence, 
Milwaukee-Racine-Waukesha, WI  
for the same levels of work within each pay locality. The 
MA-RI-NH-ME  
amount of the comparability payment payable within any 
Buffalo-Cheektowaga, NY  
Minneapolis-St. Paul, MN-WI  
particular locality is stated as a single percentage, which is 
Burlington-South Burlington, VT  
New York-Newark, NY-NJ-CT-PA  
uniformly applicable to GS positions within the locality. 
Charlotte-Concord, NC-SC  
Omaha-Council Bluffs-Fremont, NE-
The payments are effective as of the first day of the first 
IA  
applicable pay period commencing on or after such date as 
Chicago-Napervil e, IL-IN-WI  
Palm Bay-Melbourne-Titusvil e, FL  
the President designates. Locality payments are not based 
Cincinnati-Wilmington-Maysvil e, 
Philadelphia-Reading-Camden, PA-
on indicators of the cost of living in a pay area. 
OH-KY-IN  
NJ-DE-MD  
Cleveland-Akron-Canton, OH  
Phoenix-Mesa-Scottsdale, AZ  
Table 1 lists the 54 locality pay areas as of January 2022. 
Colorado Springs, CO  
Pittsburgh-New Castle-Weirton, PA-
OH-WV  
FEPCA also authorizes the President to establish an 
Columbus-Marion-Zanesvil e, OH   Portland-Vancouver-Salem, OR-WA  
alternative level of locality payments if, because of a 
Corpus Christi-Kingsvil e-Alice, TX  Raleigh-Durham-Chapel Hil , NC  
national emergency or serious economic conditions 
Dal as-Fort Worth, TX-OK  
Richmond, VA  
affecting the general welfare, the President considers the 
Davenport-Moline, IA-IL  
Sacramento-Rosevil e, CA-NV  
level that would otherwise be payable inappropriate. 
Dayton-Springfield-Sidney, OH  
San Antonio-New Braunfels-Pearsal , 
Locality payments became effective in January 1994 and an 
TX  
average 3.95% adjustment was provided, as the law 
Denver-Aurora, CO  
San Diego-Carlsbad, CA  
required, for that year. For each year since then, alternative 
Des Moines-Ames-West Des 
San Jose-San Francisco-Oakland, CA  
plans have reduced the locality pay amount provided. 
Moines, IA  
Detroit-Warren-Ann Arbor, MI  
Seattle-Tacoma, WA  
Base pay and locality pay combined cannot exceed the pay 
Harrisburg-Lebanon, PA  
St. Louis-St. Charles-Farmington, 
rate for Level IV of the Executive Schedule, which is 
MO-IL  
$176,300, as of January 2022 (5 U.S.C. §5304(g)(1)). As 
Hartford-West Hartford, CT-MA   Tucson-Nogales, AZ  
annual adjustments to base and locality are provided and 
Hawai   
Virginia Beach-Norfolk, VA-NC  
this limitation prevents raises from taking effect at the top 
Houston-The Woodlands, TX  
Washington-Baltimore-Arlington, 
of the scale—“pay compression”—employees paid at an 
DC-MD-VA-WV-PA 
increasing number of GS step levels have reached this cap. 
Huntsvil e-Decatur-Albertvil e, AL   Rest of U.S. (RUS) 
As a result of the January 2022 pay adjustments, employees 
Source: 5 C.F.R. §531.603. RUS consists of those portions of the 
in the middle to upper steps of the GS-15 pay grade are 
United States and its territories and possessions not located within 
affected by the pay cap in 30 locality pay areas. The most 
another locality pay area. 
severe compression is occurring in the San Jose-San 
Francisco-Oakland locality pay area, where employees at 
modification of pay localities, the coverage of the surveys 
GS-15 steps 4 through 10 all receive the same rate of pay. 
of pay localities conducted by the BLS, the process of 
comparing the GS and nonfederal rates of pay, and the level 
Under FEPCA, the Federal Salary Council (FSC) provides 
of comparability payments that should be paid in an annual 
views and recommendations on the establishment or 
memorandum to the President’s Pay Agent (which 
comprises the Secretary of Labor, U.S. Office of 
Management and Budget director, and OPM director). Nine 
https://crsreports.congress.gov 
Federal Locality-Based Comparability Payments for General Schedule Employees 
members comprise the FSC, of whom three members are 
A location has an opportunity to present data and 
chosen from among persons generally recognized for their 
information to the FSC related to the locality pay 
impartiality, knowledge, and experience in the field of labor 
circumstances in that location at the FSC’s annual meeting 
relations and pay policy, and six represent employee 
in Washington, DC. The data and information generally 
organizations whose membership includes substantial 
relate to the number of GS employees impacted, recruiting 
numbers of employees holding GS positions. The latter 
and retention difficulties in the location, and employee 
members are selected giving due consideration to such 
commuting patterns outside of the location to a larger 
factors as the relative numbers of employees represented by 
locality pay area. OPM does not hold membership on the 
the various organizations. Not more than three members of 
FSC but provides administrative and technical staff support. 
the FSC at any one time can be from a single employee 
Individuals or groups concerned about the geographic 
organization, council, federation, alliance, association, or 
boundaries of locality pay areas or the criteria by which 
affiliation of employee organizations (5 U.S.C. 
those boundaries are established for a particular location 
§5304(e)(1)). The FSC’s most recent memorandum covered 
may submit a proposal to the FSC. Such a proposal could 
locality pay for January 2022. The Biden Administration 
cover the location of concern regardless of whether it meets 
has yet to reconstitute the FSC and name a chair. 
the current criteria. Individuals or groups interested in 
providing input to the FSC can send an email message to 
As part of its responsibilities, the FSC may recommend that 
Pay-Leave-Policy@opm.gov with “Federal Salary Council” 
a new locality pay area be established or that a location 
in the subject line. OPM can provide individuals with 
become an “area of application”—that is, be included in an 
current information on procedures for providing testimony 
already existing locality pay area. The current criteria for 
to the FSC and on other matters related to locality pay.  
adding adjacent core-based statistical areas (CBSAs—
metropolitan and micropolitan statistical areas) or single 
The Pay Agent makes recommendations on locality 
counties to locality pay areas as areas of application are as 
payments in an annual report to the President. The most 
follows: 
recent report covered locality pay for 2022 and stated, “Any 
Council recommendations to change or make exceptions to 
  A multi-county CBSA adjacent to a basic locality pay 
the criteria by which basic locality pay areas and areas of 
area must have 1,500 or more GS employees and an 
application … are established should discuss and quantify 
employment interchange rate of at least 7.5%. The 
the implications that such changes or exceptions could have 
“employment interchange rate” is a measure of workers 
on all potentially impacted locations throughout the 
commuting between an existing locality pay area and 
Country before the Pay Agent would consider them. Further 
the proposed area of application. The rate is calculated 
deliberation on these important matters is warranted by the 
by including all workers in assessed locations, not just 
new Council, once constituted.” 
federal employees.  
In November 2021, the Government Accountability Office 
  A single county that is not part of a multi-county, non-
(GAO) published a report on the administration and 
micropolitan CBSA and is adjacent to a basic locality 
implementation of the GS locality pay program. It 
pay area must have 400 or more GS employees and an 
discussed the five options for alternatives to the locality pay 
employment interchange rate of at least 7.5%. 
survey methodology that were included in the FSC’s May 
2019 memorandum to the Pay Agent: (1) maintain the 
  Some federal facilities cross locality pay area 
status quo—continue use of the NCS/OEWS model; (2) 
boundaries. The FSC criteria stipulate that, for such a 
modify the existing salary survey methodology; (3) verify 
facility “[t]o be included in an adjacent locality pay 
the results of the methodology; (4) assess the total 
area, the whole facility must have at least 500 GS 
compensation gap; and (5) establish a commission to 
employees, with the majority of those employees in the 
periodically review federal civilian compensation. GAO 
higher-paying locality pay area, or that portion of a 
noted, “As of August 2021, the council continues to use the 
[f]ederal facility outside of a higher-paying locality pay 
current NCS/OEWS methodology.” The GAO report also 
area must have at least 750 GS employees, the duty 
restated the Pay Agent’s views that “it has found that 
stations of the majority of those employees must be 
important labor market factors are not considered and the 
within 10 miles of the separate locality pay area, and a 
overall scale of the pay disparities presented by the council 
significant number of those employees must commute to 
each year using the current locality pay methodology lacks 
work from the higher paying locality pay area.” 
credibility; and it believed there is a need for fundamental 
legislative reforms of the federal compensation system to 
With regard to revisions in the criteria for new locality pay 
develop a system that is performance sensitive and makes 
areas, the FSC’s memorandum included a recommendation 
the government more citizen centered, results oriented, and 
that the FSC “continue to analyze and discuss the issue of 
market based.” 
whether the 2,500 GS employment threshold should change 
for evaluating Rest of US metropolitan areas for possible 
Executive Order 14061 issued by President Biden on 
establishment as new locality pay areas based on pay 
December 22, 2021, authorized a 2.7% pay adjustment for 
disparities calculated using data from the NCS [National 
2022, allocated as 2.2% base pay and an average 0.5% (of 
Compensation Survey]/OES [Occupational Employment 
basic payroll) locality pay. 
Statistics] Model.” The memorandum directed the FSC’s 
Working Group to provide it with a recommendation on 
Barbara L. Schwemle, Analyst in American National 
this issue in 2021. 
Government  
https://crsreports.congress.gov 
Federal Locality-Based Comparability Payments for General Schedule Employees 
 
IF11998
 
 
Disclaimer 
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to 
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress. 
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has 
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the 
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be 
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include 
copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you 
wish to copy or otherwise use copyrighted material. 
 
https://crsreports.congress.gov | IF11998 · VERSION 3 · UPDATED