GS Salaries: Why Are Government Paychecks So Low?

Scrolling through federal job listings and suddenly thinking, “Wait…this pay is way lower than I expected”? You’re not alone. GS salaries (that’s General Schedule, for federal civilian workers) are famously stingy compared to some private sector paychecks. But what’s behind these numbers—and is there more to the story than just a plain old low salary?

Let’s get straight: government jobs don’t set salaries based on what private companies pay. If you’re used to snagging bonuses, negotiating big jumps, or cashing in on tech stock, that’s not how Uncle Sam rolls. GS pay is locked into a chart, split by grades (GS-1 to GS-15) and steps inside each grade. Your experience and job responsibilities determine where you land. Moving up? It’s on a very specific schedule, and the pay jumps aren’t always impressive.

Here’s something worth knowing: even with the fixed pay, government jobs can come with perks that aren’t always obvious at first glance. Health insurance, pensions, job stability—and dozens of days off—do add up. But if you’re comparing pure cash, don’t be surprised when the GS number looks a little low.

• The Truth About GS Pay Scales
• How Federal Salaries Get Calculated
• Perks and Benefits: Do They Really Balance It Out?
• The Reality of Raises and Promotions
• Cost of Living Adjustments: Fact or Fiction?
• Smart Moves to Make the Most of Your GS Pay

The Truth About GS Pay Scales

You’ve probably noticed people across the country grumbling about GS salaries. But the way these numbers get picked isn’t random or made up on the spot. The GS pay scale was set up back in 1949, and honestly, it hasn’t kept pace with changes in the job market or living costs in a lot of places.

Here’s how it works: The General Schedule is a single big chart with 15 grades (GS-1 for beginners to GS-15 for seasoned experts). Each grade has 10 “steps,” which are basically small raises you get for sticking around. For 2025, someone at GS-9 Step 1 makes $51,332, and someone all the way up at GS-12 Step 10 makes $102,288 before any adjustments. That might sound okay—or really low—depending on where you live.

What’s wild is that these base numbers don’t budge, no matter if you’re in New York City or Des Moines. Sure, the government tries to solve this with “locality pay,” which bumps up salaries in expensive areas, but even then, it often lags behind what similar jobs get in the private sector. San Francisco or DC might see 30%–40% on top, but it still falls short for many living costs.

Another thing: the system is all about “pay fairness”—so jobs with similar responsibilities are supposed to pay the same everywhere. But private sector jobs can pay wildly different salaries for basically the same work, depending on company, city, and negotiation. That’s not the case with GS jobs. Forget about haggling for your pay grade—it’s set by HR and the rules, not how persuasive you are in the interview.

So, if you’re asking why federal jobs pay less, this is a big part of it. It’s a rigid system built for stability and predictability, not to keep up with the ever-changing private market.

How Federal Salaries Get Calculated

If you’ve ever tried to decode a government job listing, you probably ran into that mysterious GS pay chart. Here’s what’s actually going on behind those GS salaries.

Every civilian federal job gets mapped to one of 15 grades on the General Schedule—GS-1 is the lowest, GS-15 is the highest for most federal gigs. Within each grade, there are 10 pay "steps." Where you land depends mostly on your job’s responsibilities and, to a degree, your background.

• Grade (GS-1 to GS-15): Decided by job description and the skill/education needed.
• Step (1 to 10): Represents your time in service or performance. Most folks start at Step 1 of their grade, but you can sometimes jump ahead if you’ve got strong experience or negotiate well.

The real kicker? GS pay isn’t the same all over the country. The government uses something called "locality pay." For example, a GS-9 in New York City pulls a much higher salary than a GS-9 in Oklahoma City. Why? Cost of living. There are over 50 locality pay areas. In 2024, the base GS-9, Step 1 salary was about $49,000, but with locality pay, that jumped to over $66,000 in the D.C. metro area.

So when people complain about government pay, sometimes they’re just looking at the base chart without checking their locality.

There’s no secret handshake or backroom deal for these numbers. Congress adjusts the main pay chart now and then, but actual pay also depends on negotiations every year. It’s all public and posted by the Office of Personnel Management. If you’re prepping for a federal job, check the latest chart and make sure you’re staring at the right locality, not just the base.

Perks and Benefits: Do They Really Balance It Out?

This is where the conversation about GS salaries gets interesting. Sure, take-home pay might seem smaller, but the government throws in some extras that can make you think twice about walking away from a federal gig.

First up: retirement. The Federal Employees Retirement System (FERS) isn’t something you see in most private jobs. When you combine your government pension, Social Security, and a matching 401(k)-style plan (Thrift Savings Plan), you’ve got a rock-solid setup. For many, this adds a ton of value you won’t see in your monthly paycheck, but you’ll definitely feel it down the road.

Then there’s health insurance. The Federal Employee Health Benefits (FEHB) program covers a huge range of plans and chips in a larger share of your premiums than lots of private employers—often up to 72%. Vision and dental coverage, plus flexible spending accounts, come as extras too.

Vacation and leave policies are another big win. Even new federal workers get 13 days of vacation and 13 days of sick leave each year, with paid time off bumping up over time. Toss in 11 federal holidays, and you’ve got some of the best leave around.

Job security is wild compared to the private world. Government jobs don’t just “cut staff” on a whim, and layoffs are rare unless Congress goes wild with cuts. Plus, there are extra protections if you need to take medical or family leave.

But really, do these perks make up for lower government pay? For folks with families, people willing to trade a bigger paycheck for stability, or anyone thinking long-term, the answer is often yes. If you want fast raises and huge bonuses, the private sector wins. If you want solid benefits for the long haul, the GS gig is tough to beat.

The Reality of Raises and Promotions

Here’s where a lot of folks get a rude surprise: in the GS salaries system, raises and promotions don’t happen just because your boss thinks you’re crushing it. Instead, it’s all about time and some paperwork. When you join, you start at a particular grade and step. Every grade (like GS-7 or GS-11) is split into ten steps. Usually, you’ll climb one step each year at first, then every two years, and then every three years once you’re higher up. There's even a name for this: "within-grade increases." They’re not massive jumps—think 3-4% per step at most.

If you want a real boost, you need a “promotion,” which means jumping to a higher grade. That’s where the bigger raises are. But honestly, don’t expect it to happen magically. Promotions usually require you to apply for a higher-grade job, or at least take on much more responsibility.

• Within-grade raises (step increases) are automatic if your performance is at least “acceptable.”
• On average, it takes 18 years to reach step 10 at the same grade. That’s a long grind if you never change jobs.
• Grade promotions can bump your pay by 10%-20%, but they aren’t handed out just for sticking around—you’ve got to earn them with extra work or new qualifications.

The key point: government pay grows slowly. You have to actively chase new positions or responsibilities if you want a bigger paycheck. Hanging around for annual raises won’t get you rich anytime soon.

Cost of Living Adjustments: Fact or Fiction?

If you’ve looked at a GS salaries chart, you’ll see base pay for each grade. But here’s the twist: it rarely tells the whole story. That’s because the federal pay system includes something called locality pay, which is the government’s way of admitting not every city’s expenses are equal. A GS-9 in San Francisco is going to have a very different paycheck than the same grade in Omaha. Why? Locality adjustments are designed to help federal workers afford the realities of crazy-high rent or just the basic cost of groceries, depending where you live.

There are 54 locality areas as of 2025, plus a “Rest of U.S.” zone for everywhere else. Some spots, like Washington, D.C. or San Jose, see almost 30% added to base pay. But here’s the kicker: these adjustments don’t always keep up with how fast real rental prices or inflation move. Sometimes, people working in hot markets feel like the raises are playing catch-up with actual living costs.

The system isn’t perfect. If you’re looking at jobs in rural areas, the “Rest of U.S.” adjustment is much lower—sometimes not enough to balance out higher costs you still get (like fuel or food). Plus, these numbers only get revisited yearly, and change can be slow. So yes, cost of living adjustments are real, but they have their limits. If you’re chasing that extra cash, it helps to check the latest pay tables before you apply.

Quick tip: you can use the official OPM salary calculator to see exactly what a position pays with locality included. Always check this before deciding if a federal job is worth it for your wallet.

Smart Moves to Make the Most of Your GS Pay

If jumping to the next GS pay grade overnight isn’t an option, there are still solid ways to stretch and boost your GS salaries. Too many folks leave money—or valuable benefits—on the table just by being out of the loop.

Start with your benefits. The federal government offers some of the best insurance plans around. If you’re not taking full advantage of things like flexible spending accounts or the Thrift Savings Plan (TSP), you’re missing out. For 2025, the TSP matches up to 5% of your salary if you contribute, which is basically free money. Compare TSP fees to typical 401(k) plans; they’re way lower, so your savings go further.

• Max out TSP contributions. It lowers your taxable income now and builds your retirement funds with low fees.
• Use those health plans smartly. Look at all the extras like free screenings and wellness rewards—could save you hundreds each year.
• Ladder up steps and grades. Keep track of your promotion and step eligibility. Sometimes you have to remind HR or your supervisor to trigger your next bump.
• Go for locality pay. Not all GS jobs in the same grade pay the same. Major cities like D.C., San Francisco, and New York pay more—sometimes over 30% above base salary. Take this into account if you’re open to moving.
• Check for student loan repayment programs. Some agencies help pay off federal student loans if you stick around for a few years. That could be worth more than a higher salary up front.

Here’s a quick snapshot of how much locality pay can boost your check compared to the base rate:

Don’t forget about training, certifications, or specialized duties. Even if they don’t always mean a bigger paycheck today, they line you up for future federal jobs that pay more. Always document your wins and responsibilities—these are gold when it’s time for performance reviews or promotions.

Finally, look at the long game. If you stay for the pension and carry health benefits into retirement, the net value of your government pay package can blow past what a higher base in the private sector might’ve offered—especially if you’re good at stacking those hidden perks.