Examples of January 2005 Pay Computations
Below are examples showing how various categories of employees will be
affected by the January 2005 pay adjustments. Annual rates are shown. The annual rate providing the highest entitlement (shown in bold font)
is used to calculate the employee's hourly rate in biweekly pay computations. An hourly rate is computed by dividing the annual rate by 2,087 and rounding
the result to the nearest cent. (Note: Firefighters compensated
under 5 U.S.C. 5545b are subject to special pay computation rules,
including the use of an hourly rate computed using a 2,756-hour divisor. See 5 CFR part 550, subpart M.)
1. General Schedule (GS) employee.
Grade/step: GS-9, step 5
Location: Rest of U.S. locality pay area
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2004 GS basic rate
2004 locality rate
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$41,342
$45,848
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($41,342 x 1.1090)
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2005 GS basic rate
2005 locality rate
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$42,374
$47,340
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(after 2.5% across-the-board increase)
($42,374 x 1.1172)
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2. GS employee promoted on same day the 2005 pay adjustments
take effect.
Grade/step: GS-11, step 5, before promotion
Location: Rest of U.S. locality pay area
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Step 1: Apply the across-the-board pay adjustment to the GS-11,
step 5, rate.
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2004 GS basic rate
2004 locality rate
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$50,020
$55,472
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($50,020 x 1.1090)
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2005 GS basic rate
2005 locality rate
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$51,271
$57,280
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(after 2.5% across-the-board
increase)
($51,271 x 1.1172)
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Step 2: Process the promotion to GS-12 using the 2-step rule.
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2005 GS basic rate
2005 locality rate
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$56,028
$62,594
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(GS-12, step 2, is the
lowest GS-12 step rate that equals or exceeds the GS-11, step 7,
rate of $54,287)
($56,028 x 1.1172)
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3. GM employee.
(See examples 7a and 7b for GM employees at GS-13 on the IT special
salary rate schedule.)
Grade/step: GM-13, step
00, $76,277 (not on step)
Location: Washington, DC, locality pay area
Reference: 5 CFR
531.205(a)(2)
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Step 1: Subtract the GS-13, step 1, rate of basic pay from the
employee's GM rate in 2004. (Use the 2004 rates of basic
pay.)
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2004 GM rate
2004 GS basic rate
Difference
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$76,277
$62,905
$13,372
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(employee's GM basic
rate)
(GS-13, step 1)
($76,277 - $62,905)
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Step 2: Subtract the GS-13, step 1, rate of basic pay from the
GS-13, step 10, rate of basic pay. (Use the 2004 rates of
basic pay.)
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2004 GS basic rate
2004 GS basic rate
Difference
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$81,778
$62,905
$18,873
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(GS-13, step 10)
(GS-13, step 1)
($81,778 - $62,905)
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Step 3: Divide the result of step 1 by the result of step 2. Carry the results to the seventh decimal place and truncate.
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$13,372 / $18,873 = 0.7085254
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Step 4: Subtract the GS-13, step 1, rate of basic pay from the
GS-13, step 10, rate of basic pay. (Use the 2005 rates of
basic pay.)
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2005 GS basic rate
2005 GS basic rate
Difference
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$83,819
$64,478
$19,341
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(GS-13, step 10)
(GS-13, step 1)
($83,819 - $64,478)
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Step 5: Multiply the result in step 3 by the result in step 4.
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0.7085254 x $19,341 = $13,703.589
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Step 6: Add the result in step 5 to the GS-13, step 1, rate of
basic pay (2005) and round to the next whole dollar.
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$13,703.589 + $64,478 = $78,182
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2005 GM basic rate
2005 GM locality rate
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$78,182
$90,675
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(after applying 2.5% increase
by following the above steps under 5 CFR 531.205(a)(2))
($78,182 x 1.1598)
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4. GS-11 employee receiving a retained rate of pay.
Grade/step: GS-11, step 00 (above rate range)
Location: Rest of U.S. locality pay area
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2004 retained rate
2004 locality rate
(No special rate)
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$59,026
$65,460
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($59,026 x 1.1090)
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2005 retained rate
2005 locality rate
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$59,744
$66,746
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($59,026 plus $718, where $718 is one-half of the dollar increase
in the GS-11, step 10, rate from 2004 to 2005; ($58,811 - $57,375)
/ 2 = $718)
($59,744 x 1.1172)
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5. Special rate employee where locality rate exceeds special
rate for the first time in January 2005.
Grade/step: GS-3, step 9
Location: Washington, DC
Special Rate Schedule: Table 0029 (DC Clerical)
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2004 GS basic rate
2004 locality rate
2004 special rate
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$24,280
$27,832
$28,114
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($24,280 x 1.1463)
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2005 GS basic rate
2005 locality rate
2005 special rate
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$24,887
$28,864
$28,817
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(after 2.5% across-the-board increase)
($24,887 x 1.1598)
(after 2.5% increase is applied to the 2004 special rate schedule)
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6. Special rate employee where special rate continues to exceed
locality rate in January 2005.
Grade/step: GS-3, step 1
Location: Washington, DC
Special Rate Schedule: Table 0029 (DC Clerical)
|
2004 GS basic rate
2004 locality rate
2004 special rate
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$19,168
$21,972
$23,002
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($19,168 x 1.1463)
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2005 GS basic rate
2005 locality rate
2005 special rate
|
$19,647
$22,787
$23,577
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(after 2.5% across-the-board increase)
($19,647 x 1.1598)
(after 2.5% increase is applied to the 2004 special rate schedule)
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7a. GM employee at grade GS-13 on the IT special rate schedule.
IT Special Rate Adjustment
Basic Rate for GS-2210-13,
step 00 (not on step): $79,994 (December 2004)
Location: Washington, DC, locality pay area
2004 Locality Rate: $91,697 ($79,994 x 1.1463)
IT Special Rate Schedule: Table 999C
IT Special Rate: $83,993
Reference: 5 CFR 530.306(a)(3),
530.307(c), and 531.205(a)(2)
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Step 1: Subtract the GS-13, step 1, special rate from the employee's
IT special rate in 2004. (Use the 2004 IT special rate table,
999C.)
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2004 GM IT special rate
2004 IT special rate
Difference
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$83,993
$66,050
$17,943
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(employee's GM special rate)
(GS-13, step 1)
($83,993 - $66,050)
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Step 2: Subtract the GS-13, step 1, special rate from the GS-13,
step 10, special rate. (Use the 2004 IT special rate table,
999C.)
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2004 IT special rate
2004 IT special rate
Difference
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$85,867
$66,050
$19,817
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(GS-13, step 10)
(GS-13, step 1)
($85,867 - $66,050)
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Step 3: Divide the result of step 1 by the result of step 2. Carry the result to the seventh decimal place and truncate.
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$17,943 / $19,817 = 0.9054347
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Step 4: Subtract the GS-13, step 1, rate from the GS-13, step 10,
rate. (Use the 2005 IT special rate table, 999C.)
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2005 IT special rate
2005 IT special rate
Difference
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$88,010
$67,702
$20,308
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(GS-13, step 10)
(GS-13, step 1)
($88,010 - $67,702)
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Step 5: Multiply the result in step 3 by the results in step 4.
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0.9054347 x $20,308 = $18,387.567
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Step 6: Add the result of step 5 to the GS-13, step 1, IT special
rate from the 2005 Table 999C and round to the next
whole dollar.
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$18,387.567 + $67,702 = $86,090
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The employee's GM IT special rate in 2005 is $86,090.
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7b. GM employee at grade GS-13 on the IT special rate schedule.
Locality Rate Determination
Basic Rate for GS-2210-13, step 00 (not on step): $79,994 (December
2004)
Location: Washington, DC, locality pay area
IT Special Salary Rate: Table 999C
NOTE: First compute the employee's 2005 GM unadjusted
rate of basic pay following the steps in 5 CFR 531.205(a)(2). (See steps 1-6.) (Use unadjusted rates of basic pay. Do not use the special rates of pay.) Then apply the applicable
locality payment. (See step 7.)
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Step 1: Subtract the GS-13, step 1, GS basic rate in 2004 from
the employee's rate of basic pay in 2004. (Use the 2004
GS basic schedule.)
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2004 GM basic rate
2004 GS-13 basic rate
Difference
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$79,994
$62,905
$17,089
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(employee's GM basic rate)
(GS-13, step 1)
($79,994 - $62,905)
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Step 2: Subtract the GS-13, step 1, GS basic rate in 2004 from
the GS-13, step 10, GS basic rate in 2004. (Use the 2004 GS
basic schedule.)
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2004 GS-13 basic rate
2004 GS-13 basic rate
Difference
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$81,778
$62,905
$18,873
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(GS-13, step 10)
(GS-13, step 1)
($81,778 - $62,905)
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Step 3: Divide the result of step 1 by the result of step 2. Carry the result to the seventh decimal place and truncate.
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$17,089 / $18,873 = 0.9054734
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Step 4: Subtract the GS-13, step 1, rate in 2005 from the GS-13,
step 10, rate in 2005. (Use the 2005 GS basic schedule.)
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2005 GS-13 basic rate
2005 GS-13 basic rate
Difference
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$83,819
$64,478
$19,341
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(GS-13, step 10)
(GS-13, step 1)
($83,819 - $64,478)
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Step 5: Multiply the result in step 3 by the result in step 4.
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0.9054734 x $19,341 = $17,512.761
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Step 6: Add the result of step 5 to the GS-13, step 1, GS basic
rate in 2005 and round to the next whole dollar.
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$17,512.761 + $64,478 = $81,991 [Note that $81,991 exceeds the
employee's former GM basic rate of $79,994 by approximately
2.5%, which is the amount of the GS across-the-board increase in
January 2005.]
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Step 7: Multiply the result of step 6 by the DC locality rate in
2005.
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2005 GM basic rate
2005 GM locality rate
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$81,991
$95,093
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(2005 GM basic rate, determined in step 6)
($81,991 x 1.1598 )
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The employee's locality rate in 2005 is $95,093. The employee's IT special rate ($86,090) is the underlying rate
of basic pay used for some pay administration purposes. (IT
special rate table 999C provides a 5 percent special rate supplement
at grade 13. Note that the employee's IT special rate
of $86,090 is approximately 5 percent above the GM basic rate
of $81,991.)
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8. Promotion for IT special rate employee (with underlying
GS-13 special rate) after 2005 pay adjustments take effect.
Grade/step: GS-12, step 5
Location: Washington, DC, locality pay area
IT Special Salary Rate: Table 999C
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Step 1: An employee is entitled to the lowest GS-13 rate that is
equal to or greater than the GS-12 rate that is two steps above
the employee's current GS-12 rate of pay.
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2005 IT special rate
2005 IT special rate
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$70,666
$74,822
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(GS-12, step 5, Table 999C)
(GS-12, step 7, Table 999C)
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Step 2: Find the lowest GS-13 IT special rate that equals or exceeds
the GS-12, step 7, IT special rate.
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$74,822 falls between step 4 and step 5. The employee's rate
of pay is set at GS-13, step 5, on the IT special rate schedule
= $76,728.
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Step 3: Compare the GS-13, step 5, 2005 IT special rate of pay
to the GS-13, step 5, 2005 locality rate of pay.
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$76,728 (2005 IT special rate) < $84,751 (2005locality
rate)
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Step 4: The employee is paid the GS-13, step 5, locality rate of
pay because the locality rate of pay is higher than the 2005 IT
special rate of pay. The GS-13, step 5, IT special salary
rate is an underlying rate of basic pay used for certain pay administration
purposes.
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9. Promotion for IT special rate employee at GS-12, step
10, after 2005 pay adjustments take effect.
Grade: GS-12, step 10
Location: Washington, DC, locality pay area
IT Special Salary Rate: Table 999C
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2005 DC locality rate
2005 IT special rate
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$81,747
$81,057
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(GS-12, step 10)
(GS-12, step 10)
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An employee is entitled to the lowest GS-13 rate that is equal
to or greater than the GS-12 rate that is two steps above the employee's
current GS-12 rate.
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Step 1: Subtract the GS-12, step 9, IT special rate from the GS-12,
step 10, IT special rate. Note: Since there is no step 11
rate, the two-step increase must be derived using the difference
between steps 9 and 10. This approach must be used whenever
an IT special rate employee is at step 9 or 10 before promotion.
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$81,057 (GS-12, step 10) - $78,979 (GS-12, step 9) = $2,078
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Step 2: Multiply the difference by 2 because an employee is entitled
to a two-step increase.
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$2,078 x 2 = $4,156
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Step 3: Add the increase to the employee's current rate of
pay (GS-12, step 10, IT special rate).
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$81,057 + $4,156 = $85,213
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Step 4: Find the lowest GS-13 IT special rate that equals or exceeds
the rate from step 3.
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$85,213 falls between step 8 and step 9. The employee's
rate of pay is set at a GS-13, step 9, on the IT special rate (Table
999C) = $85,754.
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Step 5: Compare the GS-13, step 9, IT special rate of pay to the
GS-13, step 9, locality rate of pay for the Washington, DC, locality
pay area.
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$85,754 (2005 IT special rate) < $94,721 (2005 locality
rate)
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Step 6: The employee is paid the GS-13, step 9, locality rate of
pay because the locality rate is higher than the 2005 IT special
rate of pay. The GS-13, step 9, IT special rate is an underlying
rate of basic pay used for certain pay administration purposes.
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