U.S. Office of Personnel Management
Compensation Administration
Examples of January 1998 Pay Computations

Below are examples showing how various categories of employees will be affected by the January 1998 pay adjustments. Annual rates are shown. The annual rate providing the highest entitlement would be used to calculate the employee's hourly rate used 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.)

  1. General Schedule (GS) employee
  2. GS employee promoted on same day that 1998 pay adjustments take effect
  3. GM employee
  4. GS-11 employee receiving a retained rate of pay
  5. Special rate employee where special rate exceeds locality rate
  6. Special rate employee where locality rate exceeds special rate for first time in January 1998
  7. Interim Geographic Adjustment (IGA) continued rate
  8. Law enforcement officer (LEO)

1. General Schedule (GS) employee

Grade/step: GS-9, step 5
Location: "Rest of U.S." pay area

  • 1997 GS rate = $33,521
  • 1997 locality rate = $35,133 ($33,521 x 1.0481)
  • 1998 GS rate = $34,293 (after 2.3% increase)
  • 1998 locality rate = $36,152 ($34,293 x 1.0542)

 

2. GS employee promoted on same day that 1998 pay adjustments take effect

Grade/step: GS-11, step 5, before promotion
Location: "Rest of U.S." pay area

First, apply general pay adjustments to GS-11, step 5, rate.
  • 1997 GS rate = $40,558
  • 1997 locality rate = $42,509 ($40,558 x 1.0481)
  • 1998 GS rate = $41,489 (after 2.3% increase)
  • 1998 locality rate = $43,738 ($41,489 x 1.0542)
Then, process promotion to GS-12 using the 2-step rule.
  • 1998 GS rate = $45,339 (GS-12, step 2, is the lowest GS-12 step rate that equals or exceeds the GS-11, step 7, rate of $43,929)
  • 1998 locality rate = $47,796 ($45,339 x 1.0542)

 

3. GM employee

Grade/step: GM-13, step 00 (not on step)
Location: Washington, DC

  • 1997 GM rate = $61,840
  • 1997 locality rate = $66,237 ($61,840 x 1.0711)
  • 1998 GM rate = $63,262 (after applying 2.3% increase as described in OPM regulations at 5 CFR 531.205(a)(2))
  • 1998 locality rate = $67,861 ($63,262 x 1.0727)

 

4. GS-11 employee receiving a retained rate of pay

Grade/step: GS-11, step 00 (above rate range)
Location: "Rest of U.S." pay area

  • 1997 retained rate = $48,916
  • 1997 locality rate = $51,269 ($48,916 x 1.0481)
    (No special rate.)
  • 1998 retained rate = $49,449 ($48,916 plus $533, where $533 is one-half of the dollar
    increase in the GS-11, step 10, rate from 1997 to 1998; ($47,589 - $46,523) 2 = $533)
  • 1998 locality rate = $52,129 ($49,449 x 1.0542)

 

5. Special rate employee where special rate exceeds locality rate

Grade/step: GS-5, step 1
Location: Washington, DC
Special Rate Schedule: Table 0029 (clerical employees)

  • 1997 GS rate = $19,520
  • 1997 locality rate = $20,908 ($19,520 x 1.0711)
  • 1997 special rate = $21,473
  • 1998 GS rate = $19,969 (after 2.3% general increase)
  • 1998 locality rate = $21,421 ($19,969 x 1.0727)
  • 1998 special rate = $21,967 (after 2.3% increase)

 

6. Special rate employee where locality rate exceeds special rate for first time in January 1998

Grade/step: GS-5, step 2
Location: Dallas, TX
Special Rate Schedule: Table 0057 (clerical employees)

  • 1997 GS rate = $20,171
  • 1997 locality rate = $21,462 ($20,171 x 1.064)
  • 1997 special rate = $21,473
  • 1998 GS rate = $20,635 (after 2.3% general increase)
  • 1998 special rate = $21,967 (after 2.3% increase)
  • 1998 locality rate = $22,059 ($20,635 x 1.069)

 

7. Interim Geographic Adjustment (IGA) continued rate

Grade/step: GS-12, step 9 (Engineer, Special Rate Table 414)
Location: New York, NY

  • 1997 GS rate = $54,330
  • 1997 nationwide special rate = $55,760 (Table 414)
  • 1997 locality rate = $59,301 ($54,330 x 1.0915)
  • 1997 IGA continued rate = $59,864 (originally established in January 1994; see 5 CFR 531.703)
  • 1998 GS rate = $55,580 (after 2.3% general increase)
  • 1998 nationwide special rate = $57,043 (after 2.3% increase)
  • 1998 locality rate = $61,005 ($55,580 x 1.0976)
  • 1998 IGA continued rate = $61,114 ($59,864 plus $1,250, where $1,250 is the dollar increase in the underlying GS-12, step 9, rate from 1997 to 1998; $55,580 - $54,330 = $1,250)

NOTE: The employee continues to receive the continued rate of pay because it is still the highest rate of pay. Under OPM regulations, a continued rate in San Francisco, Los Angeles or New York is not terminated even though the IGA for those areas has been abolished.
If the employee is entitled to a within-grade increase (WGI) to GS-12, step 10, on the same day as the general pay adjustments take effect, the WGI would be processed after the general pay adjustments, and the employee's entitlements would be as follows:
  • 1998 GS rate = $57,043 (GS-12, step 10)
  • 1998 nationwide special rate = $58,506
  • 1998 IGA continued rate = $61,114 (no change)
  • 1998 locality rate = $62,610 ($57,043 x 1.0976)

NOTE: The IGA continued rate would be terminated, since it is now exceeded by the locality rate.

 

8. Law enforcement officer (LEO)

Grade/step: GS-7, step 1
Location: Boston, MA

  • 1997 LEO special rate = $27,402
  • 1997 LEO locality rate = $29,586 ($27,402 x 1.0797)
  • 1997 LEO GEO adj. rate = $31,786 ($27,402 x 1.16)
  • 1998 LEO special rate = $28,030 (after 2.3% increase)
  • 1998 LEO locality rate = $30,443 ($28,030 x 1.0861)
  • 1998 LEO GEO adj. rate = $32,515 ($28,030 x 1.16)

Page updated 29 December, 1997