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Locality-based comparability payments are authorized under 5 U.S.C. 5304 and apply to most General Schedule employees. Regulations are at 5 CFR part 531, subpart F.
To determine an employee's locality rate, increase the employee's "scheduled annual rate of pay" by the locality pay percentage authorized by the President for the locality pay area in which the employee's official worksite is located. Locality pay areas are defined in 5 CFR 531.603.
An employee's "scheduled annual rate of pay" consists of -
An employee must receive the greatest of the following rates of pay, as applicable:
A locality rate is basic pay for the purpose of computing the following, as applicable:
A locality rate is basic pay for other provisions as specified in other statutes or OPM regulations, and payments or benefits equivalent to those listed above under other legal authorities, as determined by the head of the agency or other authorized official responsible for administering such payments or benefits. (See 5 U.S.C. 5304(c)(2) and 5 CFR 531.610.)
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