Federal locality pay is a type of pay adjustment that is given to federal employees who work in certain high-cost areas. The purpose of locality pay is to ensure that federal employees in these areas receive the same level of compensation as their counterparts in the private sector. Locality pay is determined by comparing the cost of living in a particular area to the cost of living in the Washington, D.C. area.
Locality pay is an important part of the federal pay system. It helps to ensure that federal employees are fairly compensated for their work, regardless of where they live. Locality pay also helps to attract and retain qualified employees in high-cost areas.