OPM Proposes Expansion of Locality Pay Areas to Nearly 33,000 More Federal Employees

UPDATE (12/22/2023): 2024 Federal Pay Raise Finalized in Executive Order – 2024 GS Pay Tables now available.

The Office of Personnel Management (OPM) proposed in June regulations to change the geographic boundaries of General Schedule locality pay areas.

The regulations would include nearly 33,000 federal employees and would be applicable on the first day of the first applicable pay period beginning on or after January 1, 2024, subject to issuance of final regulations.

The four new locality pay areas proposed are:

• Fresno-Madera-Hanford, CA
• Reno-Fernley, NV
• Rochester-Batavia-Seneca Falls, NY
• Spokane-Spokane Valley-Coeur d’Alene, WA-ID

In addition to the four new locality pay areas, the pay agent’s 2022 recommendations included expansions of several existing locality pay areas, including:

• Dukes and Nantucket counties in Massachusetts to the Boston locality
• Huron County, Michigan, to the Detroit locality
• Pacific and San Juan counties in Washington to the Seattle locality

OPM said the locations proposed for inclusion in a locality pay area separate from the Rest of U.S. locality pay area have all met criteria previously recommended by the Federal Salary Council and approved by the Pay Agent for nationwide use in the locality pay program.

To view the full expansion details in the Federal Register, go here.

What is General Schedule Locality Pay?

The GS base pay schedule is usually adjusted annually each January with an across-the-board pay increase based on nationwide changes in the cost of wages and salaries of private industry workers.

According to OPM, most GS employees are also entitled to locality pay, which is a geographic-based percentage rate that reflects pay levels for non-federal workers in certain geographic areas as determined by surveys conducted by the U.S. Bureau of Labor Statistics.

There are currently 47 locality pay areas, which cover the lower 48 States and Washington, DC, plus Alaska, Hawaii, and the U.S. territories and possessions.