U.S. Office of Personnel Management - Ensuring the Federal Government has an effective civilian workforce

2004 Pay Adjustments for Major Federal Pay Systems

Pay System	Basic Pay	Locality Pay
General Schedule (GS, GM)	2.7 percent increase 5 U.S.C. 5303, section 640(a) of Division F of Public Law 108-199, and Executive Order 13332, March 3, 2004.	Cumulative locality payments range from 10.90 percent (Rest of U.S.) to 24.21 percent (San Francisco) 5 U.S.C. 5304, Section 640(a) of Division F of Public Law 108-199, and Executive order.
Foreign Service (FO, FP)	2.7 percent increase Same as GS	Same locality pay percentages as GS employees Pay Agent's memo, 12/17/03
Veterans Health Administration (VHA)	2.7 percent increase Same as GS	Selected VHA positions receive same locality pay percentages as GS employees Pay Agent's memo, 12/17/03
Federal Wage System (WG, WL, WS, etc.)	Under Section 640(a) of Public Law 108-199, blue-collar Federal employees are entitled to receive pay adjustments in FY 2004 at least equal to the pay adjustments received by GS employees in the same location. The issuance of certain wage schedules will be delayed until OPM issues guidance to agencies on implementing this change in law. Delayed FY 2004 wage schedules will be retroactive to their normal effective dates. FY 2003 wage schedules are available on the Department of Defense Web site at http://www.cpms.osd.mil/wage.	not applicable
Executive Schedule (EX)	2.2 percent increase (Executive order 13332, March 3, 2004, and 5 U.S.C. 5318)	not applicable
Senior Executive Service (ES)	New Pay System The National Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136, November 24, 2003) establishes a new performance-based pay system for the SES effective on the first day of the first pay period beginning in January 2004.	The six levels of SES pay established under 5 U.S.C. 5382 have been abolished and replaced by an open pay range. In addition, locality pay will no longer be extended each year to SES members. The new SES pay range has a minimum rate of basic pay equal to 120 percent of the rate for GS-15, step 1, and the maximum rate of basic pay is equal to the rate for level III of the Executive Schedule. However, for any agency certified under 5 U.S.C. 5307(d) as having a performance appraisal system which, as designed and applied, makes meaningful distinctions based on relative performance, the maximum rate of basic pay is the rate for level II of the Executive Schedule.
Senior-Level (SL) and Scientific or Professional (ST) Positions	2.7 percent  increase in minimum and 2.2 percent increase in maximum of rate range (5 U.S.C. 5376(b)(1))	Same locality pay percentages as GS employees, but locality-adjusted rate may not exceed $145,600 Pay Agent's memo, 12/17/03
Administrative Law Judges (AL)	2.2 percent increase (5 U.S.C. 5372(b) and Executive Order 13332, March 3, 2004)	Same locality pay percentages as GS employees, but locality-adjusted rate may not exceed $145,600 Pay Agent's memo, 12/17/03
Contract Appeals Board Members (CA)	2.2 percent increase (5 U.S.C. 5372a(b))	Same locality pay percentages as GS employees, but locality- adjusted rate may not exceed $145,600 (Pay Agent's memo, 12/17/03)

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