The GS pay cap is rising from $191,900 $195,200. Image: William Sawalich/Shutterstock.com
By: FEDweek StaffThe Office of Government Ethics has issued guidance on the impact on certain ethics policies of the federal employee raise to be paid effective with the first pay period of the year, which started on Sunday (January 12) in most cases. Those limits rose with the increase in Executive Schedule rates used for pay cap purposes even though salaries payable to those under the Executive Schedule were frozen, the OGE said.
One provision restricts the post-employment activities of “senior employees” at 86.5 percent of the rate of basic pay for level II of the Executive Schedule. That threshold is now $195,231.
Another sets a threshold above which certain persons not under the GS must file public financial disclosure reports of 120 percent of the minimum rate of basic pay payable for GS-15. That threshold is now $150,160.
A third limits outside earned income to 15 percent of the annual rate of basic pay for level II of the Executive Schedule. That limit is now $33,285.
The 2025 federal employee pay raise averaging 2 percent will result in increasing the pay caps that apply to senior positions and to many in the upper ranks of the GS.
The GS pay cap is rising from $191,900 $195,200. That limit will apply to those in the upper steps of GS-15 in many of the higher-paid localities, as well as to the upper steps of GS-14 in the San Francisco locality, the highest-paid.
Also taking effect as of the first pay period of the year are FEHB and FEDVIP plan elections and premiums for the 2025 plan year (plan elections and premiums in the new Postal Service Health Benefits program are on a calendar year basis).
The first pay distribution of the year—typically made about a week to 10 days after the end of a pay period—also will reflect elections made for health care accounts, dependent care accounts or both under the flexible spending account program. A pay raise also commonly increases coverage and premiums in FEGLI, since they are linked to salary levels.
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