Alternative Version of example of how the 2003 locality rate is computed

This chart provides an example of how the 2003 locality rate is computed for an employee in the Rest of U.S. locality pay area. The example is for a GS-9, step 1, employee.

The example shows that the GS-9, step 1, basic rate increases from $34,451 in 2002 to $35,519 in 2003 as a result of the 3.1 percent across-the-board basic pay increase.

To derive the new locality rate, increase the GS-9, step 1, basic rate of $35,519 by the 2003 Rest of U.S. locality pay percentage of 8.64 percent. The resulting 2002 locality rate is $38,588.

Compare the 2003 locality rate of $38,588 to the 2002 locality rate of $37,428. (The 2002 locality rate was derived by increasing the GS-9 step 1 basic rate of $34,451 by 8.64 percent.) The net increase in the locality rate is 3.10 percent.

Last Modified: 2:39:29 PM on Wednesday, August 20, 2003