What is a “locality pay increase”?
GOOD Question!!! WHAT does that mean???
Locality pay is extra pay based on where you live. The cost of living in one city can be a lot more than it is in another. Workers at the same pay grade get the same pay but locality and other special pays can bump up ones pay check.
Locality Adjustments
Employees paid on the General Schedule (GS) and the Law Enforcement Officer (LEO) Schedule receive a percentage increase to their salary to compensate for the different costs of living Across the U.S. and abroad.
If you make $50,000 in Middle Georgia and they want you to move to California, your $50,000 will buy much less in California so they make an adjustment to your salary to account for that. If you move back to Middle Georgia you lose the California locality adjustment, but your expenses are less.
Federal "base pay" is the same everywhere. They add in "locality pay" based on your zip code. It's based on cost of living in your area. Federal employees working in DC or San Fran get more "locality pay" than someone in Florida or Texas.
It is a locality based increase of the federal general schedule pay.
IOW, If the GS pay rate for a certain grade position etc is $100k, and San Antonio is rated as being 20% higher in cost of living compared to that pay rate, then the rate for that position in SAT would be $120k.
Funny, it applies only to civil service types, but not military. Hmmm. But, then again, military folks may get a Housing allowance if they live off base.
COLA is a part of the pay to allow same quality of living for those in different places.- someone in NY would get more than someone in MS...