What is locality adjustment pay?
Michael Gray
Updated on April 04, 2026
Locality Adjustments Employees paid on the General Schedule (GS) and the Law Enforcement Officer (LEO) Schedule receive a percentage increase to their salary to compensate for the different costs of living Across the U.S. and abroad.
What does locality adjusted mean?
Locality relates to the region where the employee works. This factor adjusts the base rate of pay for the cost of living in a geographic area. While each position is assigned to a specific grade, and each employee is assigned to a step within that grade, the pay rate will vary by location.
How does federal government determine locality pay?
Based on legal requirements, BLS conducts locality pay surveys in geographic areas designated by the President’s Pay Agent as locality pay areas, with survey data representing non-Federal salaries (including State and local) at distinct levels of work.
Is locality pay included in federal retirement?
So, does FERS include locality pay in your annuity? Yes, the locality pay adjustment is included as part of your base pay when calculating your annuity. There is no adjustment made to where you live after you are retired.
Do wage grade employees get locality pay?
Employees in GS positions in the continental United States also receive locality pay (there are 32 defined locality pay areas).
Does FERS include locality adjustment?
What is a locality pay adjustment?
To determine actual pay, base pay is modified by a “Locality Pay Adjustment” percentage, which is specified by whichever of the 34 General Schedule pay localities in which the employee is located. Use the map or drop-down below to view Locality-adjusted GS pay tables, or use our GS Pay Calculator to calculate your pay.
Will locality pay change as more federal employees work outside offices?
One of the changes likely to occur will be how the locality pay system is applied to federal employees in an era where more federal employees are working outside of where their official offices are located. Where Are You Really Working?
How does the Federal Salary Council decide locality pay?
The Federal Salary Council reviews locality pay areas and makes recommendations on locality pay for the coming year—including whether to add a new locality pay area or modify existing pay areas. The President’s Pay Agent may (or may not) accept the Salary Council recommendations.
Which states have the highest locality adjustment rates?
San Francisco, New York and Washington D.C. boast the highest locality adjustment. Employees in these areas can earn 10% to 15% more than someone with the same pay grade elsewhere in the country.