The Federal Wage System (FWS) is a uniform pay-setting system that covers Federal appropriated fund and nonappropriated fund blue-collar employees who are paid by the hour. The system's goal is to make sure that Federal trade, craft, and laboring employees within a local wage area who perform the same duties receive the same rate of pay. The FWS includes 130 appropriated fund and 118 nonappropriated fund local wage areas. Successful labor-management partnership is the hallmark of the FWS, with labor organizations involved in all phases of administering the pay system.
Under this uniform pay system -
- Your pay will be the same as the pay of other Federal jobs like yours in your wage area, and
- Your pay will be in line with pay for private sector jobs like yours in your wage area.
Pay Limitation
On December 26, 2019, OPM issued Compensation Policy Memorandum 2019-26 to notify agencies that Division C of the Consolidated Appropriations Act, 2020 (the Fiscal Year (FY) 2020 Act), contains two provisions that affect the determination of pay adjustments for certain prevailing rate (wage) employees in FY 2020. The FY 2020 Act continues a pay limitation provision in section 737(a) and establishes floor pay adjustments required by sections 737(b) and 748(b).
Operating Manuals
The FWS Appropriated Fund and Nonappropriated Fund Operating Manuals contain information about the history of the FWS program, how wage surveys are conducted, setting pay for FWS employees, premium pay guidelines, special rates and schedules, and set-aside schedules. The FWS Operating Manuals are useful tools for personnel specialists and FWS employees.