2017 Federal Locality Rates

The President has sent the 2017 alternative pay plan for Federal employees  to Congress. The plan calls for a 1% increase in pay for all Feds, and an average of 0.6% increase in locality pay.

The winners in this year’s locality pay race are Feds in San Francisco (1.32%), Washington-Baltimore (1.26%), and San Diego (1.22%).

Feds in the “Rest of U.S.” (0.39%), Cincinnati (0.41%), and Cleveland (0.45%) fared the worst.

The formula under which locality rates are supposed to be established would have raised those rates by an average of 28.49%, which would cost the government about $26 billion. The law allows the President to depart from that formula in cases of “national emergency or serious economic conditions affecting the general welfare,” a provision which has been used every year since the law was enacted.

But not to fear – according the President’s statement: “These decisions will not materially affect our ability to attract and retain a well-qualified Federal workforce.”

The 2017 locality rates for all areas are listed below:

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