What Is General Schedule (GS)?
The General Schedule (GS) is the primary pay scale for the majority of civilian white-collar federal employees within the United States civil service. It is a standardized system of compensation designed to ensure equitable pay for similar work across various government agencies. As a key component of Public Finance, the General Schedule plays a crucial role in managing the government's workforce costs and attracting qualified personnel. The GS system categorizes positions into 15 grades (GS-1 through GS-15), with each grade further divided into 10 steps, reflecting increasing levels of responsibility, difficulty, and required qualifications.43
History and Origin
The General Schedule was established by the Classification Act of 1949, which aimed to codify and standardize the federal government's pay structure. This act replaced the Classification Act of 1923, building upon the principle of "equal pay for substantially equal work" across federal roles.41, 42 The U.S. Office of Personnel Management (OPM), the central human resources agency for the federal government, oversees the administration of the General Schedule.39, 40 The system was initially designed to align federal salary rates with those in the equivalent private sector jobs, a concept reinforced by the Federal Salary Reform Act of 1962.38 A significant amendment to the General Schedule occurred in 1990 with the Federal Employees Pay Comparability Act (FEPCA). This legislation introduced "locality pay adjustments" to account for regional differences in wages and the cost of living, addressing concerns that a uniform national pay scale was becoming uncompetitive in certain high-cost areas.36, 37
Key Takeaways
- The General Schedule (GS) is the standardized pay system for most U.S. federal white-collar employees.35
- It consists of 15 grades (GS-1 to GS-15) and 10 steps within each grade, determining basic pay based on job difficulty and qualifications.34
- Annual pay adjustments include a base pay increase and a geographically based locality pay component.33
- Advancement within steps is based on longevity and acceptable performance ratings, while advancement between grades typically involves promotion to higher-level positions.32
- Despite its intent, the GS system faces ongoing criticisms regarding its competitiveness with the private sector and its rigidity in modern labor markets.30, 31
Interpreting the General Schedule (GS)
Understanding the General Schedule involves recognizing its two primary components: basic pay and locality pay. The basic pay rate for each GS grade and step is uniform nationwide. However, the locality pay adjustment is a percentage added to the basic pay, varying significantly by geographic area to reflect local market rates for comparable non-federal work.28, 29 An individual's total GS compensation is the sum of their basic pay and the applicable locality pay. This system aims to make federal employment competitive across diverse economic regions. For instance, an employee at GS-9, Step 5, in a high-cost area like the San Francisco-Oakland region will earn more than an employee with the same grade and step in the "Rest of U.S." locality, due to the higher locality adjustment. The Office of Personnel Management (OPM) publishes detailed pay tables annually, allowing individuals to identify the specific total pay for each grade and step in different localities.26, 27
Hypothetical Example
Consider Jane, a new federal employee starting her career. She holds a bachelor's degree and is hired into an entry-level professional position classified as GS-5, Step 1. Her initial base salary would be determined by the national GS-5, Step 1 rate.
If Jane is located in Washington, D.C., her total annual pay will include the GS-5, Step 1 base pay plus the specific Washington-Baltimore-Arlington locality pay adjustment for that year. After one year of acceptable performance, Jane would typically advance to GS-5, Step 2, receiving a within-grade increase in her basic pay. This incremental progression reflects accumulated experience and continued satisfactory work within her current job classification. Should she successfully apply and be selected for a more complex role, she could receive a promotion to a higher GS grade, such as GS-7, which would involve a more substantial increase in her basic pay and potentially a new step within that higher grade.
Practical Applications
The General Schedule (GS) system is fundamental to the U.S. federal government's human capital management, affecting over 1.5 million civilian white-collar employees in various professional, administrative, technical, and clerical roles.24, 25 The Office of Personnel Management (OPM) provides comprehensive guidelines and tables for the General Schedule, which are essential for federal agencies in classifying positions and administering employee pay.22, 23 These guidelines cover everything from initial hiring rates to promotions and within-grade increases, ensuring a structured approach to employee compensation across the vast federal bureaucracy. The annual adjustments to the GS, encompassing both across-the-board base pay increases and locality pay adjustments, are determined through a process involving the President's Pay Agent (comprising the heads of the Department of Labor, Office of Management and Budget, and OPM) and the Federal Salary Council. This ensures that federal salaries remain somewhat responsive to broader economic conditions and regional labor markets. Current official information regarding pay tables and related policies can be found on the U.S. Office of Personnel Management's website.21
Limitations and Criticisms
Despite its foundational role, the General Schedule system has faced continuous criticisms regarding its effectiveness and adaptability in the modern labor market. A primary critique is that the system's rigid structure may hinder the federal government's ability to attract and retain top talent, particularly in highly competitive fields where private sector market rates significantly outpace GS salaries.19, 20 While the Federal Employees Pay Comparability Act (FEPCA) introduced locality pay to address regional pay disparities, the statutory goal of narrowing the gap between federal and non-federal pay to within 5% has not been consistently met since 1994.16, 17, 18
Critics argue that the single locality pay rate for an entire geographic area fails to account for varying labor markets across different occupational groups, potentially leading to underpaid mission-critical occupations while overpaying others.14, 15 Furthermore, the system's reliance on longevity for within-grade step increases, rather than solely on individual performance ratings, is often cited as a disincentive for high performers.12, 13 Concerns also exist about "pay compression" at higher GS grades, where the combined basic pay and locality pay for GS-15 employees can be capped by the Executive Schedule Level IV, resulting in employees at different steps within the highest grades receiving the same total pay.10, 11 A Government Accountability Office (GAO) report highlighted that as of March 2020, non-federal pay was, on average, 23% higher than federal pay for similar jobs, underscoring ongoing challenges in achieving pay equity.9
General Schedule (GS) vs. Federal Wage System (FWS)
The General Schedule (GS) and the Federal Wage System (FWS) are both significant pay scale structures within the U.S. federal government, but they apply to different segments of the workforce. The key distinction lies in the type of occupations they cover.
The General Schedule (GS) primarily governs the salary and compensation for white-collar federal employees. This includes a vast array of professional, administrative, technical, and clerical positions, ranging from entry-level roles to senior management (below the Executive Schedule). Pay rates under the GS are determined by grade, step, and locality pay adjustments.8
In contrast, the Federal Wage System (FWS) is designed for federal blue-collar employees, specifically those in trades and crafts occupations. Unlike the GS, FWS pay rates are established based on prevailing local wage rates for similar jobs in the private sector within a defined wage area. This system ensures that federal blue-collar workers receive pay that is comparable to their non-federal counterparts in the same geographic region. The FWS system focuses on hourly wage rates rather than fixed annual salaries with distinct grades and steps in the same manner as the GS.6, 7
FAQs
What does "GS" stand for in federal employment?
"GS" stands for General Schedule. It is the main pay scale for the majority of civilian white-collar federal employees in the U.S. government.5
How are General Schedule (GS) salaries determined?
GS salaries are determined by a combination of a basic pay rate, which depends on the employee's grade (GS-1 to GS-15) and step (1 to 10), and a locality pay adjustment based on the geographic area of employment. The specific grade is based on the job classification, reflecting the difficulty and responsibility of the position.4
Can a General Schedule (GS) employee get a raise every year?
GS employees typically receive an annual pay adjustment which includes an across-the-board base pay increase and a locality pay increase. Additionally, employees can receive within-grade step increases based on acceptable performance ratings and length of service, although it can take many years to reach the highest step within a grade.3
What is locality pay, and how does it affect General Schedule (GS) employees?
Locality pay is an additional percentage added to a GS employee's basic salary to account for differences in private sector wages in specific geographic areas. It helps make federal compensation more competitive in areas with higher living costs or higher prevailing market wages.1, 2
Are all federal employees paid under the General Schedule (GS)?
No, not all federal employees are paid under the General Schedule. While the GS covers the majority of white-collar positions, other systems exist for different employee groups, such as the Federal Wage System (FWS) for blue-collar workers and the Executive Schedule for high-ranking officials.