Fedweek

The GS pay cap is rising from $191,900 $195,200. Image: Bankiras/Shutterstock.com

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.

For career SES, senior level and senior scientific and professional positions who are paid within a range and get performance-based raises, the minimum pay will rise from $147,649 to $150,160 and the maximum to either $225,700 or $207,500. The higher figure applies to agencies where the performance evaluation systems are certified as making meaningful distinctions based on differences in performance; most agencies have that designation.

While raises for those positions can be paid at differing times of a year depending on performance evaluation cycles, agencies typically pay them at the start of the year.

Certain additional post-employment restrictions apply to those paid at a rate of basic pay equal to or greater than 86.5 percent of the rate for Executive Schedule Level II, which will be $195,231.

Other impacts of the raise include:

* “Special rate” employees who receive higher salaries in certain hard to fill positions will receive a 1.7 percent increase plus the higher of the applicable locality rate or their special rate, but not both (when the locality rate exceeds the special rate, the special rate is canceled). Details are here.

* While the raises are set according to the boundaries of GS localities, the long-standing policy of limiting raises for federal wage system (also called wage grade) employees at the GS amount will continue. However, a complex capping mechanism applies; details are here. Blue-collar employees receive their raise at differing times of a fiscal year.

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