Federal Manager's Daily Report

Annual Review of Special Rate Pay to Begin

OPM has issued its annual memo telling agencies to review and report on their need for “special rate” pay, a process in which agencies can recommend whether to provide that higher pay for recruitment and retention purposes in certain occupations and locations; continue—and potentially increase—the differential where it is already being paid; or reduce or discontinue it.

Agencies currently using the authority need only respond if they are requesting a different amount or to reduce rates in a special rate schedule or to end it. If an agency makes no recommendation—the most common outcome of these annual reviews—the differential continues unchanged and those employees will receive the GS across the board pay raise component in January.

The deadline for any submissions is October 18, although agencies “can submit special rate requests at any time throughout a calendar year.”

Special rate pay varies from several percent above the base GS rate for the grade and step of a position to much more. It is eliminated, however, if GS pay including the locality component is raised to above the special rate in an area.

The memo on chcoc.gov says that agencies should plan on a January 2025 GS raise under terms of the White House’s recommendation: a 1.7 percent across the board component plus an average 0.3 percent locality raise. That is not certain but Congress is on track to allow it to take effect by default.

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.

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