The General Schedule (GS) Locality Pay is a system of pay adjustments for federal employees in the United States. It is designed to ensure that federal employees receive equal pay for equal work, regardless of where they are located. The locality pay adjustments are based on the cost of living in each locality, as determined by the Office of Personnel Management (OPM).
The GS Locality Pay system is important because it helps to ensure that federal employees are able to afford to live in the communities where they work. It also helps to attract and retain qualified employees in high-cost areas. The locality pay adjustments are updated annually, and the rates for 2025 have not yet been released. However, the OPM has proposed a 1.3% increase for 2025.