The Office of Personnel Management (OPM) is responsible for setting and administering the pay scales for federal employees. The OPM salary schedule is updated annually, and the 2025 salary schedule is expected to be released in the fall of 2024. The 2025 salary schedule will likely include a general pay increase for all federal employees, as well as locality pay adjustments for employees in certain geographic areas.
In addition to the general pay increase and locality pay adjustments, the 2025 salary schedule may also include changes to the pay structure for certain occupations. For example, the OPM may adjust the pay rates for certain occupations that are in high demand or that require specialized skills. The OPM may also make changes to the pay structure for certain occupations that have experienced a decline in demand or that no longer require specialized skills. Overall, the 2025 salary schedule is expected to reflect the current labor market conditions and the need to attract and retain a qualified workforce.
Factors Influencing OPM Salary Adjustments
The Office of Personnel Management (OPM) considers several factors when making salary adjustments for federal employees. These include:
Local Pay Comparability
OPM compares federal salaries to salaries in the private sector and local government in each locality. This is to ensure that federal employees are paid fairly compared to their non-federal counterparts. The Federal Salary Council (FSC) is responsible for conducting local pay comparability studies.
The FSC collects salary data from private sector and local government employers in each locality. This data is then used to calculate a weighted average salary for each federal job series and grade in each locality. The OPM then uses these weighted average salaries to set federal salaries for each locality.
General Schedule (GS) Pay Scale
The GS pay scale is used to determine the salaries of most federal employees. The GS pay scale has 15 grades, with each grade divided into 10 steps. The step that an employee is paid at is based on their experience and performance.
The OPM adjusts the GS pay scale each year to keep up with rising inflation. The OPM also makes adjustments to the GS pay scale when necessary to ensure that federal employees are paid fairly compared to their non-federal counterparts.
Recent Federal Pay Adjustments
The OPM has made several significant salary adjustments in recent years:
| Year | Pay Raise | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | 4.6% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 4.1% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 3% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | 3.1%
Regional Variations in OPM SalariesThe Office of Personnel Management (OPM) establishes salary rates for federal employees based on a variety of factors, including the geographic location of their duty station. This is because the cost of living can vary significantly from one region to another, and OPM wants to ensure that federal employees are paid fairly and equitably regardless of where they live. The OPM divides the United States into 15 geographic regions, each with its own set of salary rates. The following table shows the 15 regions and the corresponding locality pay areas.
As you can see, the salary rates for OPM employees can vary significantly depending on the region in which they work. This is because the cost of living can be much higher in some regions than others. For example, the cost of living in New York City is much higher than the cost of living in rural Pennsylvania. As a result, OPM employees who work in New York City are paid more than OPM employees who work in rural Pennsylvania. Impact of Inflation on OPM Salaries 1. OPM Salaries and InflationOPM salaries are adjusted annually based on the Employment Cost Index (ECI), a measure of inflation in wages and benefits for the federal government. The ECI is determined by the Bureau of Labor Statistics (BLS) and reflects changes in wages and salaries, as well as benefits such as health insurance and paid time off. 2. Impact of Inflation on Federal EmployeesInflation can impact federal employees in several ways. If the ECI increases significantly, it can lead to larger pay raises for employees. However, it can also erode the purchasing power of employees’ salaries over time. As prices rise, employees may find that their salaries can no longer purchase the same amount of goods and services, resulting in a decrease in their standard of living. 3. Government Adjustments to InflationTo mitigate the impact of inflation, the government may implement various measures, such as cost-of-living adjustments (COLAs) and tax breaks. COLAs are adjustments to salaries and benefits that are designed to keep pace with inflation and ensure that employees’ purchasing power does not decline significantly. Tax breaks, such as those for retirement savings, can also help employees manage the effects of inflation by reducing their taxable income. 4. Projections for OPM Salaries in 2025Predicting the exact impact of inflation on OPM salaries in 2025 is challenging. However, based on historical trends and current economic conditions, we can make some projections:
These projections suggest that OPM salaries are likely to continue to increase in 2025, but at a slower pace than in recent years. This is due to expectations of lower inflation rates in the coming years. Comparison of OPM Salaries with Private SectorThe Office of Personnel Management (OPM) determines the salaries for federal employees, while private-sector salaries are determined by market forces. As a result, there can be significant differences in salaries between the two sectors. In general, OPM salaries tend to be lower than private-sector salaries for similar positions and experience levels. Factors Contributing to Salary DifferencesThere are several factors that contribute to the salary differences between OPM and private-sector salaries, including:
Salary Comparison TableThe following table provides a comparison of OPM salaries with private-sector salaries for selected positions:
It is important to note that these are just general salary ranges, and actual salaries may vary depending on the specific position, experience level, location, and other factors. Salary Expectations for Different OPM GradesThe Office of Personnel Management (OPM) is responsible for setting the pay scales for federal employees. The OPM pay structure is based on a General Schedule (GS) grading system, with each grade corresponding to a specific level of responsibility and experience. The following table outlines the salary expectations for different OPM grades:
It’s important to note that these salary ranges are subject to annual adjustments based on factors such as inflation and cost-of-living increases. The actual salary you receive may also vary depending on your specific geographic location and job responsibilities. Stay Informed on Salary DataConduct thorough research to gather industry-specific salary data from reliable sources such as OPM’s website, Salary.com, and Glassdoor. This information will provide you with a reasonable range to negotiate within. Quantify Your Accomplishments and ValueDocument your accomplishments quantifiably whenever possible. Use specific metrics and data to showcase the tangible contributions you’ve made to the organization. Highlight how your work has exceeded expectations and benefited the agency. Be Prepared to Discuss Your WorthCome to the negotiation table prepared to articulate your contributions and justify your salary expectations. Be confident and professional, but also be willing to compromise and negotiate a mutually acceptable outcome. Build Relationships and Seek SupportEstablish positive relationships with your supervisors, colleagues, and HR representatives. Their perspectives and support can strengthen your negotiating position. Explore Non-Monetary BenefitsConsider negotiating for non-monetary benefits such as flexible work arrangements, additional leave, professional development opportunities, or other perks that align with your needs. Know Your BATNADetermine your “best alternative to a negotiated agreement” (BATNA) to assess your options and give yourself leverage during negotiations. This could involve seeking alternative employment or accepting a lower salary in exchange for greater benefits. Practice Active Listening and EmpathyShow that you’re genuinely listening to the other party’s perspective. Understand their constraints and demonstrate a willingness to cooperate and find a solution that benefits both parties. OPM Salary Trends and ForecastsCurrent OPM Salary TrendsOPM salaries have been steadily increasing in recent years. In 2022, the average OPM salary was $92,200. This is up from $88,000 in 2021 and $84,000 in 2020. Factors Affecting OPM SalariesA number of factors affect OPM salaries, including:
OPM Salary ForecastsOPM salaries are expected to continue to increase in the coming years. The Bureau of Labor Statistics projects that OPM employment will grow by 7% from 2021 to 2031, faster than the average for all occupations. OPM Salary by Grade LevelThe following table shows the average OPM salary by grade level:
OPM Salary by LocationThe location of an OPM job can also affect the salary. OPM salaries are typically higher in large metropolitan areas such as Washington, D.C., New York City, and Los Angeles. OPM Salary by Job TitleThe job title of an OPM employee can also affect the salary. Some of the highest-paying OPM jobs include:
OPM Career Growth and Salary ProgressionCareer Ladder and PromotionsOPM employees progress through a multi-level career ladder with defined career paths and promotion opportunities. Regular performance evaluations and achievement of performance goals determine eligibility for promotions. Compensation StructureOPM salaries are based on the General Schedule (GS) pay scale, which is standardized across the federal government. Salaries are determined by grade level, step within the grade, and locality pay adjustment. Merit IncreasesEmployees within the GS system are eligible for annual merit increases based on their performance ratings. The percentage increase is determined by performance level and agency budget constraints. Tenure BonusesOPM employees are also eligible for tenure bonuses based on years of service with the organization. The bonuses increase with each additional year of service, providing a tangible reward for long-term commitment. Exceptional PayIn certain cases, employees may be eligible for exceptional pay, such as performance awards or special incentives. These awards recognize outstanding contributions and encourage continued high performance. Step IncreasesEmployees automatically advance through the steps within their pay grade after a specified period of time. Step increases provide regular salary adjustments without requiring a promotion. Career Advancement OpportunitiesOPM provides various opportunities for career growth and advancement, including training and development programs, lateral transfers, and cross-agency assignments. Salary RangesThe table below provides an overview of the salary ranges for different GS grades:
Factors Influencing SalarySeveral factors can influence an employee’s salary within the OPM framework, including locality pay adjustments, performance bonuses, and market conditions. OPM Salary 2025: A Comprehensive OutlookThe Office of Personnel Management (OPM) is the federal agency responsible for setting and administering pay rates for federal employees. The OPM salary schedule for 2025 is expected to see significant changes, aligning with the Biden administration’s priorities and projected economic trends. Based on current estimates, the OPM salary tables for 2025 will reflect an average salary increase of approximately 3.5%. This increase is in line with the projected inflation rate and aims to maintain the purchasing power of federal employees. Additionally, the OPM is considering implementing a locality-based pay system, which would adjust salaries based on the cost of living in each geographic area. Furthermore, the OPM is expected to focus on addressing pay disparities and ensuring fair compensation for federal employees across different agencies and job series. This includes efforts to close the gender and racial pay gaps and provide equitable pay for employees with similar skills and responsibilities. People Also Ask About OPM Salary 2025How much will OPM salaries increase in 2025?The average OPM salary increase for 2025 is expected to be approximately 3.5%. Is there going to be a locality-based pay system for OPM employees?The OPM is considering implementing a locality-based pay system, which would adjust salaries based on the cost of living in each geographic area. What is the OPM doing to address pay disparities?The OPM is focused on addressing pay disparities and ensuring fair compensation for federal employees across different agencies and job series. This includes efforts to close the gender and racial pay gaps and provide equitable pay for employees with similar skills and responsibilities. |
