Do federal employees get locality pay?

Employees in GS positions in the continental United States also receive locality pay (there are 32 defined locality pay areas).

How do you calculate locality pay?

To determine an employee’s locality rate, increase the employee’s “scheduled annual rate of pay” by the locality pay percentage authorized by the President for the locality pay area in which the employee’s official worksite is located. Locality pay areas are defined in 5 CFR 531.603.

Is locality pay included in base pay?

Yes, the locality pay adjustment is included as part of your base pay when calculating your annuity.

How does locality pay work for federal employees?

For all of these pay schedules, the locality adjustment is based on place of employment, not place of residence. This allows employees to choose to commute from a more affordable area into an area with a higher cost of living in order to receive higher pay relative to where they live.

Is locality pay included in high 3?

Locality Pay *is* considered when calculating your High 3 Salary, but COLA is not. If you had time in an area with high Locality Pay, be especially sure to review your entire career before automatically assuming your High-3 are your last three years of service.

Is COLA and locality pay the same?

Because COLA is tax-free, and Locality Pay is taxable. Moving from COLA to Locality Pay means more taxes for you. The formula for the transition was designed to leave some ‘left over’ COLA to offset the higher taxes that you’ll be paying on the Locality Pay.

Is federal locality pay based on where you live?

An employee’s pay is based on the location of their official duty station. For a remote worker, their locality pay will be based on the city and state of their home (or other approved alternative location where they are authorized to work and regularly perform their duties).

Does high 3 salary include locality pay?

Does high 3 average salary include locality?

The high-three is the average of your highest-paid period of 36 consecutive months. This three-year period can be at any point of your federal career. Your regular pay, along with any locality pay, is included in the calculation for your high-three average.

How does FERS calculator high-3?

The high-3 percentage is determined by a three-part formula based on an employee’s length of creditable service: 1.5% x high-3 x first five years of service. plus 1.75% x high-3 x next five years of service. plus 2.0% x high-3 x all years of service over 10.

Is BRS or high-3 better?

High-3 is the more generous retirement plan for members who serve 20 years or more year and earn its lifetime annuity. The BRS provides a 20 percent smaller annuity.