83 FR 12207 - January 2018 Pay Schedules

OFFICE OF PERSONNEL MANAGEMENT

Federal Register Volume 83, Issue 54 (March 20, 2018)

The President has signed an Executive order to implement the January 2018 pay adjustments for certain Federal civilian employees. The Executive order authorizes a 1.4 percent across-the-board increase for statutory pay systems and locality pay increases costing approximately 0.5 percent of basic payroll, reflecting an overall average pay increase of 1.9 percent. This notice serves as documentation for the public record.

[Federal Register Volume 83, Number 54 (Tuesday, March 20, 2018)]
[Notices]
[Pages 12207-12208]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-05611]



[[Page 12207]]

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OFFICE OF PERSONNEL MANAGEMENT


January 2018 Pay Schedules

AGENCY: Office of Personnel Management.

ACTION: Notice.

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SUMMARY: The President has signed an Executive order to implement the 
January 2018 pay adjustments for certain Federal civilian employees. 
The Executive order authorizes a 1.4 percent across-the-board increase 
for statutory pay systems and locality pay increases costing 
approximately 0.5 percent of basic payroll, reflecting an overall 
average pay increase of 1.9 percent. This notice serves as 
documentation for the public record.

FOR FURTHER INFORMATION CONTACT: Kristen Foy, Pay and Leave, Employee 
Services, U.S. Office of Personnel Management; (202) 606-4194 or [email protected].

SUPPLEMENTARY INFORMATION: On December 22, 2017, the President signed 
Executive Order (E.O.) 13819 (82 FR 61431), which implemented the 
January 2018 pay adjustments. The Executive order provides an overall 
average pay increase of 1.9 percent for the statutory pay systems. This 
is consistent with the President's alternative pay plan issued under 5 
U.S.C. 5303(b) and 5304a on August 31, 2017.
    The publication of this notice satisfies the requirement in Section 
5(b) of E.O. 13819 that the Office of Personnel Management (OPM) 
publish appropriate notice of the 2018 locality payments in the Federal 
Register.
    Schedule 1 of E.O. 13819 provides the rates for the 2018 General 
Schedule (GS) and reflects a 1.4 percent increase from 2017. Executive 
Order 13819 also includes the percentage amounts of the 2018 locality 
payments. (See Section 5 and Schedule 9 of Executive Order 13819.)
    General Schedule employees receive locality payments under 5 U.S.C. 
5304. Locality payments apply in the United States (as defined in 5 
U.S.C. 5921(4)) and its territories and possessions. In 2018, locality 
payments ranging from 15.37 percent to 39.28 percent apply to GS 
employees in the 47 locality pay areas. The 2018 locality pay area 
definitions can be found at: https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/2018/locality-pay-area-definitions/.
    The 2018 locality pay percentages became effective on the first day 
of the first pay period beginning on or after January 1, 2018 (January 
7, 2018). An employee's locality rate of pay is computed by increasing 
his or her scheduled annual rate of pay (as defined in 5 CFR 531.602) 
by the applicable locality pay percentage. (See 5 CFR 531.604 and 
531.609.)
    Executive Order 13819 establishes the new Executive Schedule (EX), 
which incorporates a 1.4 percent increase required under 5 U.S.C. 5318 
(rounded to the nearest $100). By law, Executive Schedule officials are 
not authorized to receive locality payments.
    Executive Order 13819 establishes the 2018 range of rates of basic 
pay for members of the Senior Executive Service (SES) under 5 U.S.C. 
5382. The minimum rate of basic pay for the SES is $126,148 in 2018. 
The maximum rate of the SES rate range is $189,600 (level II of the 
Executive Schedule) for SES members who are covered by a certified SES 
performance appraisal system and $174,500 (level III of the Executive 
Schedule) for SES members who are not covered by a certified SES 
performance appraisal system.
    The minimum rate of basic pay for the senior-level (SL) and 
scientific and professional (ST) rate range was increased by 1.4 
percent ($126,148 in 2017), which is the amount of the across-the-board 
GS increase. The applicable maximum rate of the SL/ST rate range is 
$189,600 (level II of the Executive Schedule) for SL or ST employees 
who are covered by a certified SL/ST performance appraisal system and 
$174,500 (level III of the Executive Schedule) for SL or ST employees 
who are not covered by a certified SL/ST performance appraisal system. 
Agencies with certified performance appraisal systems for SES members 
and employees in SL and ST positions must also apply a higher aggregate 
limitation on pay--up to the Vice President's salary ($243,500 in 
2018.)
    Note that Section 20101 of subdivision 3 of division B of the 
Bipartisan Budget Act of 2018 (Pub. L. 115-123, February 9, 2018) 
amended the Continuing Appropriations Act, 2018, division D of Public 
Law 115-56. Under section 101(a) of that Act, the authority and 
conditions provided in FY 2017 appropriations laws continue to apply 
during the period specified in the Act, as amended. This language means 
that the freeze on the payable pay rates for the Vice President and 
certain senior political appointees at 2013 levels--as provided in 
section 738 of division E of the Consolidated Appropriations Act, 2017, 
Public Law 115-31, May 5, 2017--continues through March 23, 2018, or 
the date of enactment of new appropriations legislation. Future 
Congressional action will determine whether the pay freeze continues 
beyond March 23, 2018. Until such time, the OPM guidance on the 2017 
pay freeze for certain senior political officials is generally 
applicable in applying the pay freeze in 2018. (See OPM guidance 
memoranda CPM 2017-05 at https://www.chcoc.gov/content/continued-pay-freeze-certain-senior-political-officials, CPM 2018-02 at https://www.chcoc.gov/content/continued-pay-freeze-certain-senior-political-officials-1, CPM 2018-03 at https://www.chcoc.gov/content/pay-and-leave-employees-affected-lapse-appropriations-and-continued-pay-freeze-certain, and CPM 2018-05 at https://www.chcoc.gov/content/pay-employees-affected-lapse-appropriations-and-continued-pay-freeze-certain-senior.)
    Executive Order 13819 provides that the rates of basic pay for 
administrative law judges (ALJs) under 5 U.S.C. 5372 are increased by 
1.4 percent, rounded to the nearest $100 in 2018. The rate of basic pay 
for AL-1 is $164,200 (equivalent to the rate for level IV of the 
Executive Schedule). The rate of basic pay for AL-2 is $160,100. The 
rates of basic pay for AL-3/A through 3/F range from $109,600 to 
$151,700.
    The rates of basic pay for members of Contract Appeals Boards are 
calculated as a percentage of the rate for level IV of the Executive 
Schedule. (See 5 U.S.C. 5372a.) Therefore, these rates of basic pay are 
increased by 1.4 percent in 2018.
    On November 22, 2017, OPM issued a memorandum on behalf of the 
President's Pay Agent (the Secretary of Labor and the Directors of the 
Office of Management and Budget and OPM) that continues GS locality 
payments for ALJs and certain other non-GS employee categories in 2018. 
By law, EX officials, SES members, employees in SL/ST positions, and 
employees in certain other equivalent pay systems are not authorized to 
receive locality payments. (Note: An exception applies to certain 
grandfathered SES, SL, and ST employees stationed in a nonforeign area 
on January 2, 2010. See CPM 2009-27 at https://www.chcoc.gov/content/nonforeign-area-retirement-equity-assurance-act.) The memo is available 
at https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/continuation-of-locality-payments-for-non-general-schedule-employees-november-22-2017.pdf.
    On December 22, 2017, OPM issued a memorandum (CPM 2017-18) on the 
January 2018 pay adjustments. (See https://www.chcoc.gov/content/january-2018-pay-adjustments.) The memorandum transmitted Executive

[[Page 12208]]

Order 13819 and provided the 2018 salary tables, locality pay areas and 
percentages, and information on general pay administration matters and 
other related information. The ``2018 Salary Tables'' posted on OPM's 
website at http://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/ are the official rates of pay for affected employees and are 
hereby incorporated as part of this notice.

U.S. Office of Personnel Management.
Jeff T.H. Pon,
Director.
[FR Doc. 2018-05611 Filed 3-19-18; 8:45 am]
 BILLING CODE 6325-39-P