This chart provides an example of how the 2002 locality rate and net increase is computed for an employee in the Rest of U.S. locality pay area.  The example is for a GS-9 step 1 employee.

The example shows that the GS-9 step 1 basic rate increases from $33,254 in 2001 to $34,451 in 2002 as a result of the 3.6 percent general basic pay increase.

To derive the new locality rate, increase the GS-9 step 1 basic rate of $34,451 by the 2002 Rest of U.S. locality pay percentage of 8.64 percent.  The resulting 2002 locality rate is $37,428.

Compare the 2002 locality rate of $37,428 to the 2001 locality rate of $35,808.  (The 2001 locality rate was derived by increasing the GS-9 step 1 basic rate of $33,254 by 7.68 percent.)  The net increase in the locality rate is 4.52 percent.