Extra Percentage Point Likely to Be Divided Up

Although not specified in the recently enacted legislation, it’s expected that the funds for the additional percentage point of salary will be divided up as locality pay, producing raises that would vary from 4.87 percent in the San Francisco-Oakland-San Jose locality to 4.02 percent in the “rest of the U.S.” locality, the catchall locality for areas outside the designated metropolitan zones. That decision is to be made in an administration order to carry out the new rates. Raises for wage grade employees-who are under a separate locality system-likely will be capped during the current fiscal year at 4.21 percent. That is, they will receive either 4.21 percent or the amount indicated for them by local pay surveys, whichever is lower.