General schedule

What Is General Schedule?

The General Schedule (GS) is the primary pay scale for the majority of civilian white-collar federal employees within the United States government. Established as part of the broader framework of government compensation, the General Schedule classifies positions into a series of grades and steps, determining the base salary for a given role based on its complexity, responsibility, and required qualifications. It serves as a structured system designed to ensure fair and consistent pay across diverse roles within the civil service.

History and Origin

The General Schedule system has its roots in the Classification Act of 1923, later refined and codified by the Classification Act of 1949. This legislation aimed to standardize federal salaries and align them with equivalent positions in the private sector¹⁹. The system is now administered by the U.S. Office of Personnel Management (OPM) and is codified in Chapter 53 of Title 5 of the United States Code, sections 5331 to 5338¹⁸.

Initially, GS employees received the same salary regardless of their geographic location. However, recognizing the increasing disparities in wages and the cost of living across the country, the Federal Employees Pay Comparability Act of 1990 (FEPCA) introduced "locality pay adjustments" in January 1994. This significant change aimed to make federal salaries more competitive with local private-sector wages.

Key Takeaways

• The General Schedule (GS) is the predominant pay system for most white-collar U.S. federal employees.
• It organizes positions into 15 grades (GS-1 to GS-15), with each grade having 10 steps.
• Salaries are determined by a combination of a base pay rate and a locality pay adjustment, which accounts for regional wage differences.
• Advancement through steps is typically based on longevity and acceptable performance, while promotions to higher grades are based on increased responsibility and qualifications.
• The system aims to promote pay equity and consistent compensation standards across the federal workforce.

Interpreting the General Schedule

The General Schedule is interpreted through a combination of an employee's assigned grade and step, along with the applicable locality pay area. A position's grade (e.g., GS-9) reflects its level of difficulty, responsibility, and the qualifications needed. Within each grade, there are 10 steps, with higher steps indicating longer tenure and satisfactory performance within that grade.

For example, a GS-5, Step 1 employee will earn less than a GS-5, Step 10 employee, and both will earn less than a GS-7, Step 1 employee. Furthermore, the final salary is adjusted based on the employee's work location, reflecting local prevailing wages in the public sector and private markets. These adjustments are crucial for attracting and retaining talent in areas with higher living costs¹⁷. The Office of Personnel Management (OPM) regularly publishes official pay tables that detail the base salary for each grade and step, as well as the specific locality pay rates for various geographic areas¹⁶.

Hypothetical Example

Imagine Sarah, a recent college graduate, applies for an entry-level administrative position with a federal agency. The job description states the position is classified as a GS-5, Step 1. The base salary for GS-5, Step 1, is set by OPM. Let's say, for example, the national base salary for GS-5, Step 1, is $37,500.

However, Sarah's position is located in a high-cost of living area, which has a locality pay adjustment of 25%. Her total annual salary would be calculated as:

As Sarah gains experience and consistently meets performance expectations, she would typically advance through the steps within GS-5, receiving within-grade increases. After a certain period and if she takes on more complex duties or is promoted, she might be eligible to advance to a higher grade, such as GS-7, which would come with a significant salary increase.

Practical Applications

The General Schedule is fundamental to the human resources and compensation practices of the U.S. federal government. It is used in:

• Job Classification: Every white-collar federal position is assigned a GS grade based on standardized classification criteria related to duties, responsibilities, and qualifications¹⁵. This ensures that jobs of similar complexity and impact are compensated similarly, regardless of the agency.
• Recruitment and Hiring: Federal agencies advertise positions with their corresponding GS grades, allowing potential applicants to understand the salary range and career progression opportunities.
• Performance Management: While the base pay is determined by grade and step, within-grade increases for steps are tied to an acceptable level of performance and longevity. Exceptional performance may also lead to quality step increases¹⁴.
• Budgeting and Planning: The GS pay system provides a predictable structure for government agencies to forecast personnel costs and manage their budgets effectively.
• Policy and Regulation: Changes to the General Schedule, including annual pay adjustments and the creation of new locality pay areas, are determined by the President and Congress, often influenced by recommendations from the Federal Salary Council and economic data¹³. The system's effectiveness in competing for talent is a recurring topic in policy discussions¹².

Limitations and Criticisms

Despite its foundational role, the General Schedule system faces various criticisms. One major critique is its perceived rigidity and lack of responsiveness to dynamic labor markets and private-sector pay levels¹¹. Critics argue that the General Schedule was not initially designed to compete aggressively for talent in today's diverse job market, which can lead to difficulties in recruiting and retaining highly skilled individuals, particularly in specialized fields or high-cost areas¹⁰.

Another common concern is the system's reliance on longevity for within-grade step increases rather than purely on merit system principles or individual performance, which some argue does not sufficiently incentivize high achievement⁹. Additionally, the complex and often slow process of reclassifying jobs or adjusting locality pay boundaries can lag behind real-world economic changes, creating imbalances in compensation across different regions and occupations⁸.

However, some argue that the system effectively prevents discrimination and ensures pay equity across different demographics within the federal workforce, a benefit that some private sector compensation models might struggle to achieve⁷. Proponents suggest that while the system may appear outdated, its stability and clear structure offer important benefits for a large, diverse workforce.

General Schedule vs. Federal Wage System

The General Schedule (GS) and the Federal Wage System (FWS) are the two primary civilian pay systems within the U.S. federal government, designed for different categories of employees.

A key difference lies in how locality pay is determined and applied. While the General Schedule's locality pay aims to address pay disparities with the white-collar private sector, the FWS is designed to keep blue-collar federal wages in line with local prevailing hourly rates for comparable private-sector jobs⁴, ⁵, ⁶. This has historically led to separate geographic pay boundaries for the two systems, though efforts are underway to standardize these maps to address potential inequities³.

FAQs

What does "GS" stand for?

"GS" stands for General Schedule, referring to the primary pay scale for most civilian white-collar federal employees in the U.S. government.

How are General Schedule salaries determined?

General Schedule salaries are determined by a combination of a base pay rate corresponding to a specific grade and step (e.g., GS-7, Step 5) and a locality pay adjustment, which varies based on the geographic area of employment to account for local wage differences¹, ².

What is the highest General Schedule grade?

The highest General Schedule grade is GS-15. Beyond GS-15, senior federal employees may fall under other pay systems, such as the Senior Executive Service (SES).

How do employees advance within the General Schedule system?

Employees typically advance through the 10 steps within their assigned grade based on longevity (time in service) and maintaining an acceptable level of performance. Promotions to higher grades usually occur when an employee takes on more complex duties or assumes a position with greater responsibility.