Higher 'Special Rate' Pay for Some Federal Jobs (2024)

askFW » Federal Pay » Higher ‘Special Rate’ Pay for Some Federal Jobs

Special rates are salaries that are paid in occupations and in locations that are deemed highly competitive and difficult for the government to recruit and retain employees. Most special rate positions are in engineering, computer-related and other technical fields, although there is no restriction by type of occupation.

Also, in some cases special rate pay is paid to all occupations in a remote location, or in positions with difficult or dangerous working conditions. Special rate adjustments generally amount to several percent of salary.

Pay increases for special rate employees are determined by annual studies by employing agencies and the Office of Personnel Management. Generally speaking, special rate employees get the annual across-the-board component of a general schedule pay raise. They also get either their special rate adjustment or the locality component of the GS raise, whichever is higher (but not both).

General schedule special rates

The minimum rate of a special rate range may exceed the maximum rate of the corresponding grade by as much as 30 percent. However, no special rate may exceed the rate for Executive Level IV. A special rate request must be submitted to OPM by department headquarters and must be coordinated with other federal agencies with employees in the same occupational group and geographic area. OPM annually invites agencies to propose new schedules or to increase, decrease or end existing ones, although changes typically are few.

Wage grade special rates

The special rate authority allows a lead agency, with the approval of OPM, to establish rates above the regular wage system wage schedule rates for an occupation or group of occupations experiencing or potentially experiencing recruitment or retention difficulties.

Special rates are established by occupation, grade, agency, and/or geographic location. These rates will be paid by all agencies having positions for which the rates are authorized. The special rate payable may not, at any time, be less than the unrestricted rate otherwise payable for such positions under the applicable regular wage schedule.

Note: Under 5 U.S.C. 5305, an employee’s entitlement to a special rate is eliminated if the employee is entitled to a higher rate of basic pay, such as a locality pay. In addition, certain grades or steps of a grade are deleted from special rate schedules where locality pay is higher at all the steps of the grade or at certain steps of the grade.

Higher 'Special Rate' Pay for Some Federal Jobs (2024)

FAQs

What is the federal pay raise special rate? ›

President Joe Biden granted civilian federal employees a 4.1% base pay increase that went into effect Jan. 1 this year, plus an average locality pay boost of 0.5%, creating an overall increase of 4.6% for 2023.

What is the special salary rate request for OPM? ›

The Special Salary Rate Request Form (Office of Personnel Management (OPM) Form 1397) is an optional form that agencies may use to request that OPM establish, adjust, terminate, or modify coverage of special salary rates under the authority of 5 U.S.C. 5305 and 5 CFR part 530, subpart C.

What is the two step rule for the federal government? ›

The two-step promotion rule states that a GS employee promoted to a position in a higher grade is entitled to basic pay at the lowest rate of the higher grade that exceeds his or her existing rate of basic pay by not less than two step increases of the grade from which promoted.

What is the special rate 5 USC 5305? ›

5305 to establish special salary rates for single positions or classes of positions when recruitment and retention of well-qualified individuals is handicapped by remoteness of an area, the undesirability of the working conditions, pay rates offered by state and private employers, and other conditions which OPM ...

What is the OPM special rate increase for 2023? ›

NOTES: INCORPORATING THE 4.1 PERCENT JANUARY 2023 GENERAL SCHEDULE INCREASE.

Are federal employees getting pay raise in 2023? ›

But in recent years, federal pay bumps have typically factored in a 0.5% locality pay boost. The 2023 federal pay raise, enacted in January, was 4.6% on average, composed of a 4.1% base pay raise and a 0.5% average locality pay bump.

How do you negotiate a federal salary offer? ›

Here are some steps you can follow to negotiate for a higher salary in a federal role:
  1. Review your offer. ...
  2. Determine your General Schedule level. ...
  3. Consider your qualifications. ...
  4. Calculate your expenses. ...
  5. Consult a mentor. ...
  6. Accept your best offer. ...
  7. Ask for more than you want. ...
  8. Include private market value.
Mar 10, 2023

What is special pay in payroll? ›

A special payroll payment is payment for unusual or non-periodical payouts, such as missed payments, leave encashment, bonuses, incentives, etc. Special payrolls have to be incorporated into the firms' payroll schedule.

What is the COLA for federal employees for 2023 OPM? ›

What is the amount of the cost-of-living adjustment? For the year 2023, annuitants who retired under CSRS will receive 8.7 percent increase and those who retired under FERS will receive a 7.7 percent increase.

How often can you get a step increase in the federal government? ›

Raises and Bonuses

As a GS employee, you have to wait one year to increase to a step 2, 3, or 4. You must wait two years before increasing to step 5, 6, or 7. Lastly, you must wait three years before increasing to step 8, 9, or 10. This means that if you join TTS at step 1, you'll proceed to step 2 the following year.

What are 2 things the federal govt can do that the states Cannot? ›

Concurrent powers are powers shared by the federal government and the states. Only the federal government can coin money, regulate the mail, declare war, or conduct foreign affairs.

What is a step increase for federal government? ›

Each grade has 10 step rates (steps 1-10) that are each worth approximately 3 percent of the employee's salary. Within-grade step increases are based on an acceptable level of performance and longevity (waiting periods of 1 year at steps 1-3, 2 years at steps 4-6, and 3 years at steps 7-9).

What are the special rates? ›

special rate means a rate made and levied by a local government on the unimproved value of some, but not all, rateable land in its area.

Does 5 CFR 2635.204 A allow federal employees to accept gifts? ›

An employee may accept unsolicited gifts having an aggregate market value of $20 or less per source per occasion, provided that the aggregate market value of individual gifts received from any one person under the authority of this paragraph (a) does not exceed $50 in a calendar year.

How much will the GS pay scale increase in 2023? ›

2023 GS rate: $67,227 (after 4.1% across-the-board increase). 2023 locality rate: $78,319 ($67,227 x 1.1650). Step 2: Process the promotion to GS-12 using the standard method, since the employee is covered by the same pay schedules before and after promotion.

What is the federal employee raise for 2024? ›

Even with a largest in decades pay raise, inflation could keep fed salaries trailing behind the private sector. President Biden, in his FY 2024 budget, has proposed a 5.2% pay raise for feds.

How do OPM special rates work? ›

The Office of Personnel Management (OPM) may establish higher rates of basic pay - special rates - for a group or category of General Schedule (GS) positions in one or more geographic areas to address existing or likely significant handicaps in recruiting or retaining well-qualified employees.

What is the federal pay raise for 2023 October? ›

President Biden signed an executive order on Dec. 23, 2022, officially boosting pay for many civilian federal employees. General Schedule (GS) employees will receive a raise of 4.1 percent across-the-board in 2023, and a 0.5 percent locality adjustment.

Will GS 15 get pay raise in 2023? ›

In Washington, DC, the 2023 pay raise is 4.86%. For GS 15 managers in steps 7-10, their pay is subject to a maximum of $183,500. Federal employees in the San Jose-San Francisco locality pay area will receive a pay raise of 5.13% in January.

What will the federal minimum wage be in 2023? ›

What is the minimum wage in each state for 2023?
State2022 Minimum Hourly Wage2023 Minimum Hourly Wage
California$14.00 for employers with 25 or less workers; $15.00 for larger businesses.$15.50 for all employers.
Colorado$12.56$13.65
Connecticut$14.00$14.00
Delaware$10.50$11.75
47 more rows
Jan 23, 2023

Can you negotiate higher salary for government jobs? ›

It's a common misconception that you can't negotiate salary after an agency makes an offer. Indeed, you can. Bring up your unique qualifications and needs, such as your educational background and work experience, and the fact that you have to relocate for the position.

What perks to negotiate salary? ›

Here are a few benefits you can negotiate:
  • Stock options.
  • Better health benefits.
  • Benefits start date.
  • Work flexibility (including flexible hours, remote work, or hybrid work)
  • Increased paid vacation time.
  • Increased unpaid vacation time.
  • Increased paid personal days.
  • Tuition reimbursem*nt or learning stipends.

Can you negotiate a higher GS level? ›

Salary negotiation in federal government jobs is possible. Since budgets and funds management work differently to the private sector, negotiation also differs, but there are still a lot of similarities. For example, you still need to establish the reasons why you deserve a higher salary before asking for one.

What is an example of a special payment? ›

Special payments are, generally, individual payments that the employee receives together with the salary or wage (for example, Christmas Bonus).

Is special pay taxed? ›

Special Pay: Like basic pay, special pay is taxable unless it's earned in a combat zone. Special pay may include compensation for: Foreign duty (outside the 48 contiguous states and the District of Columbia) Hardship duty.

What is a special employee? ›

A special Government employee is defined at 18 U.S.C. § 202 to include an officer or employee who is retained, designated, appointed, or employed by the Government to perform temporary duties, with or without compensation, for not more than 130 days during any period of 365 consecutive days.

Is GS 12 a high position? ›

The GS-1 through GS-7 range generally marks entry-level positions, while mid-level positions are in the GS-8 to GS-12 range and top-level positions (senior managers, high-level technical specialists, or physicians) are in the GS-13 to GS-15 range.

What is the pay scale for the GS 9 2023? ›

2023 GS Base Payscale Table PDF Version - 2023 GS Payscale
GS GradeStep 1Step 9
GS-7$40,082$50,770
GS-8$44,389$56,229
GS-9$49,028$62,100
GS-10$53,990$68,390
11 more rows

What is the GS COLA for 2023? ›

President Joe Biden signed an executive order on Dec. 23, making the federal pay raise official for many civilian employees in 2023. As anticipated, General Schedule employees will get an across-the-board pay raise of 4.1% in 2023, plus a 0.5% locality pay adjustment, totaling to an average 4.6% pay increase.

Can I retire after 5 years of federal service? ›

To be vested (eligible to receive your retirement benefits from the Basic Benefit plan if you leave Federal service before retiring), you must have at least 5 years of creditable civilian service. Survivor and disability benefits are available after 18 months of civilian service.

How much PTO do federal employees get? ›

Leave
0-3 years of federal service3-15 years of federal service15+ years of federal service
13 days of vacation leave/year20 days of vacation leave/year26 days of vacation leave/year
13 days of sick leave/year13 days of sick leave/year13 days of sick leave/year
Jan 27, 2022

Can you skip GS grades? ›

You may land a higher graded job—and perhaps even skip a grade(s)—without meeting TIG requirements if you meet these two criteria: 1) Your credentials include nonfederal experience and/or educational credentials that would help you qualify for your target job; and 2) You're targeting a job that is open to external, ...

What is the federal government not allowed to do? ›

The First Amendment's Establishment Clause prohibits the government from making any law “respecting an establishment of religion.” This clause not only forbids the government from establishing an official religion, but also prohibits government actions that unduly favor one religion over another.

What are 3 powers that are denied to both federal and state? ›

In addition, neither the national government nor state governments may: Grant titles of nobility. Permit slavery (13th Amendment) Deny citizens the right to vote due to race, color, or previous servitude (15th Amendment)

What the federal government Cannot do? ›

The government cannot take away your life, liberty, or property without following the law. 15. The government cannot take your private property from you for public use unless it pays to you what your property is worth.

Does federal government give raises every year? ›

Each year congress decides whether or not to raise the General Schedule (GS) pay scale, which applies to nearly 3 million federal employees across the 15 Federal Departments and numerous independent agencies. Pay raises are typically 1-3%, although pay rates may be frozen during difficult economic times.

Do federal employees get annual bonuses? ›

Performance Bonus/Pay Adjustment (Commerce Alternative Personnel System only) - Employees who receive performance rating scores of 40 or above are eligible to receive a performance bonus and/or pay adjustments. They also receive locality pay and the annual general increases each January.

Can you ask for a quality step increase? ›

To be eligible for a Quality Step Increase, an employee must: be below step 10 of their grade level; have received the highest rating available under their performance management program; have demonstrated sustained performance of high quality; and.

How do you ask for a special rate? ›

6 Ways to Negotiate Discounts with Customers
  1. 1) Ask the prospect why price is an issue. ...
  2. 2) Shift the conversation from price to value. ...
  3. 3) Offer to provide additional services for the proposed price. ...
  4. 4) Agree to a deal with different terms. ...
  5. 6) Agree to a discount only if the customer gives something in return.

What are the 4 types of rates? ›

The term “interest rate” is one of the most commonly used phrases in the fixed-income investment lexicon. The different types of interest rates, including real, nominal, effective, and annual, are distinguished by key economic factors, that can help individuals become smarter consumers and shrewder investors.

What are the 3 types of rates? ›

There are essentially three main types of interest rates: the nominal interest rate, the effective rate, and the real interest rate.

How much can a federal employee accept as a gift? ›

Gifts valued at $20 or less (retail market value), per occasion from a single source. You may accept unsolicited gifts that do not exceed $20 per occasion, up to $50 aggregated from a single source in any given calendar year. You may not accept cash or checks made out to you under any circ*mstance.

Can federal employees accept lunch? ›

An employee generally may accept food, refreshments and entertainment, not including travel and lodging, at a social event attended by several people where the invitation is from someone who is not a prohibited source and no fee is charged to anyone in attendance.

How much can you gift a federal employee? ›

(Section 89503; Regulation 18940.2.) Gifts from a single source that aggregate to $50 or more must be disclosed and gifts aggregating to $500 or more received by an official during any 12-month period may subject the official to disqualification with respect to the source (Section 87103(e).)

What is the GS step increase for 2023? ›

Step 1: Apply the across-the-board pay adjustment to the GS-11, step 5, rate. 2022 GS rate: $64,579. 2022 locality rate: $75,041 ($64,579 x 1.1620). 2023 GS rate: $67,227 (after 4.1% across-the-board increase).

What is the GS pay scale increase for 2023? ›

New for the 2023 GS Pay Scales

The White House announced their proposal for a 4.1% average increase in Federal wages, along with a 0.5% increase for locality pay, for a 4.6% total average increase. This is the largest pay raise for Federal employees in 20 years.

What is the federal pay raise and COLA for 2023? ›

General Schedule (GS) employees will receive a raise of 4.1 percent across-the-board in 2023, and a 0.5 percent locality adjustment. The 4.6 percent raise is the largest single-year pay boost for federal employees since 2002. Workers will receive higher paychecks starting the first pay period in January 2023.

What is the pay raise for federal retirees in 2023? ›

As announced in October 2022, federal retirees received an 8.7 percent increase for Civil Service Retirement System (CSRS) annuities and Social Security benefits, and a 7.7 percent increase for Federal Employees Retirement System (FERS) annuities in January 2023.

Can I negotiate my GS step? ›

Grade or Step Level

Under the government pay system, it can be difficult to negotiate a higher GS level—as the pay grades are called under the government's General Schedule—than the one listed in the job description.

What is the pay for 2023 GS 6? ›

Starting salary for a GS-6 employee is $36,070.00 per year at Step 1, with a maximum possible base pay of $46,888.00 per year at Step 10. The hourly base pay of a Step 1 GS-6 employee is $17.28 per hour1. The table on this page shows the base pay rates for a GS-6 employee.

What is the government pay raise for 2024? ›

President Biden, in his FY 2024 budget, has proposed a 5.2% pay raise for feds. Sounds pretty good. An extra nickel over every dollar feds earned just last year.

What is the cola for federal employees in 2023? ›

The 2023 federal retiree cost-of-living adjustment (COLA) will be 8.7 percent for those under the Civil Service Retirement System (CSRS) and 7.7 percent for those under the Federal Employees Retirement System (FERS). This is the largest COLA in nearly four decades.

Who is eligible for the 2023 COLA increase? ›

Here's the bottom line: You only receive COLA adjustments if you apply for retirement benefits after age 62. Specifically, you get adjustments for any years between your first eligibility (at age 62) and your filing date. If you claim Social Security right when you turn 62, you may not get any of those adjustments.

Who gets the 2023 COLA increase? ›

Social Security benefits and Supplemental Security Income (SSI) payments will increase by 8.7% in 2023. This is the annual cost-of-living adjustment (COLA) required by law. The increase will begin with benefits that Social Security beneficiaries receive in January 2023.

What is the average federal pension? ›

Median Pension Benefit
Table 10. Median benefit for persons age 65 and older with income from private pensions and annuities, public pensions, and veterans benefits
Type of pension benefitMedian benefit, 2021
Private pensions and annuities$10,606
Federal government pension$26,734
State or local government pension$22,860
3 more rows
Nov 28, 2022

Do federal employees get a pension and Social Security? ›

Federal Employees Retirement System (FERS)

This is a contributory three-tier plan providing retirement income from a Federal pension, Social Security and a Thrift Savings Plan (TSP).

Is OPM retirement a lifetime benefit? ›

An annuity terminates on the day the annuitant dies or the date of other terminating events provided by title 5, U.S. Code, Section 8345(c), et seq.

Top Articles
Latest Posts
Article information

Author: Msgr. Benton Quitzon

Last Updated:

Views: 6165

Rating: 4.2 / 5 (63 voted)

Reviews: 94% of readers found this page helpful

Author information

Name: Msgr. Benton Quitzon

Birthday: 2001-08-13

Address: 96487 Kris Cliff, Teresiafurt, WI 95201

Phone: +9418513585781

Job: Senior Designer

Hobby: Calligraphy, Rowing, Vacation, Geocaching, Web surfing, Electronics, Electronics

Introduction: My name is Msgr. Benton Quitzon, I am a comfortable, charming, thankful, happy, adventurous, handsome, precious person who loves writing and wants to share my knowledge and understanding with you.