ADMINISTERING LOCALITY RATES
Background
Locality-based comparability payments are authorized under 5 U.S.C. 5304 and
apply to most General Schedule employees. Regulations are at 5 CFR part 531,
subpart F.
Determining a Locality Rate
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.
Thirty-two locality pay areas are defined in 5 CFR 531.603.
“Scheduled Annual Rate of Pay”
An employee's “scheduled annual rate of pay” consists of —
-
The General Schedule (GS or GM) base rate for the employee's grade
and step (or relative position in the rate range), excluding additional
pay of any kind such as locality payments or special rate supplements;
-
A special base rate for GS law enforcement officers (LEOs) at grades GS-3 through GS-10 under section 403
of the Federal Employees Pay Comparability Act of 1990
(Public Law 101-509); or
- For an employee in a category of positions described in 5 U.S.C. 5304(h)(1)(A)-(D)
for which the President (or designee) has authorized locality payments under
5 U.S.C. 5304(h)(2), the annual rate of pay fixed by law or administrative
action, exclusive of any locality-based adjustments (including adjustments
equivalent to local special rate supplements under 5 CFR 530, subpart C) or
other additional pay of any kind.
Pay Entitlement
An employee must receive the greatest of the following rates of pay, as applicable:
- The scheduled annual rate of pay payable to the employee;
- A locality rate under 5 CFR part 531, supart F, or a similar rate under
other legal authority;
- A special rate under 5 CFR part 530, subpart C, or a similar rate under
other legal authority (e.g., 38 U.S.C. 7455); or
- A retained rate under 5 CFR part 536 or a similar rate under other legal authority.
Basic Pay
A locality rate is basic pay for the purpose of computing the following, as applicable:
- retirement deductions and benefits
- life insurance premiums and benefits
- premium pay and premium pay limitations
- severance pay
- advances in pay
- lump-sum payments for accrued and accumulated annual leave
- post differentials under 5 U.S.C. 5925(a) and danger pay allowances under
5 U.S.C. 5928 for an employee temporarily working in a foreign area for which the Department of State has established a danger pay allowance under 5 U.S.C. 5928, but only if the employee's official worksite is located
in a locality pay area (i.e., the employee is on detail, including a work assignment that places the employee in temporary
duty travel status)
- recruitment, relocation, and retention incentives, supervisory differentials,
and extended assignment incentives
- performance-based cash awards when such awards are computed as a percentage
of an employee's rate of basic pay
- GS pay administration provisions (e.g., promotions) to the
extent provided in 5 CFR part 531, subpart B
- pay administration provisions for prevailing rate employees which consider
rates of basic pay under the GS pay system in setting pay (except as otherwise
provided in 5 CFR part 532), subject to the requirement that, if the employee's
actual locality rate would not apply at the official worksite for the prevailing
rate position, that locality rate must be converted to a corresponding rate
on the locality rate schedule for that official worksite and
- grade and pay retention to the extent provided in 5 CFR part 536
A locality rate is basic pay for other provisions as specified in other statutes
or OPM regulations, and payments or benefits equivalent to those listed above
under other legal authorities, as determined by the head of the agency or other
authorized official responsible for administering such payments or benefits. (See
5 U.S.C. 5304(c)(2) and 5 CFR 531.610.)