If you are a federal employee, you have almost certainly heard the term “GS-12” or “GS-14 Step 5” — but do you fully understand how the General Schedule pay system works and why it matters so much for your retirement?
This guide explains everything.
What is the General Schedule (GS)?
The General Schedule is the primary pay scale for federal white-collar civilian employees. It covers approximately 70% of all civilian federal workers and is administered by the Office of Personnel Management (OPM).
The GS system has two main dimensions:
- Grade (GS-1 to GS-15): Represents the level of the position — its difficulty, complexity, and required qualifications
- Step (1 to 10): Represents your progression within a grade, generally based on time and performance
GS Grades: GS-1 to GS-15
Each GS grade corresponds to a broad category of work:
| Grade Range | Typical Positions |
|---|---|
| GS-1 to GS-4 | Entry-level, clerical, support |
| GS-5 to GS-7 | Recent graduates, technical support |
| GS-9 to GS-11 | Journeyman professionals, technical specialists |
| GS-12 to GS-13 | Senior professionals, experienced analysts |
| GS-14 to GS-15 | Senior executives, department leaders |
The jump from grade to grade represents a significant pay increase — often 10–15% or more.
GS Steps: 1 to 10
Within each grade, there are 10 steps. You advance through steps based on satisfactory performance and time in service:
- Steps 1–3: One year per step (Waiting Period: 52 weeks)
- Steps 4–6: Two years per step (Waiting Period: 104 weeks)
- Steps 7–9: Three years per step (Waiting Period: 156 weeks)
Moving from Step 1 to Step 10 within a grade typically takes about 18 years of continuous satisfactory service.
Locality Pay — Why It Matters
The GS pay scale sets a base salary for each grade and step. On top of that, OPM adds locality pay — a geographic adjustment to account for the cost of living in different areas.
In 2025, locality pay rates range from:
- Rest of United States: +16.86% above base
- Washington DC Metro: +33.55% above base
- San Francisco, CA: +44.16% above base
This means the same GS-12 Step 5 position pays significantly different salaries depending on where you work.
How GS Pay Affects Your FERS Retirement
Here is why your GS grade and step matter enormously for retirement:
Your FERS pension is calculated using your High-3 average salary. Because your GS pay (including locality) is your basic pay, your GS grade and step in your final years of service directly determine your retirement income — for life.
Example: A GS-13 Step 8 employee in DC Metro earns approximately ,000. A GS-11 Step 6 employee in Rest of US earns approximately ,000. After 25 years of service:
- GS-13 Step 8 DC: ,000 × 25 × 1% = ,500/year pension
- GS-11 Step 6 RUS: ,000 × 25 × 1% = ,250/year pension
Use our FERS Pension Calculator with your High-3 salary to estimate your monthly pension.