Average Salary for Federal Employees in 2025: A Complete Guide

When considering a federal government job, one of the most common questions people ask is: “What is the average salary for federal employees?” In 2025, the average salary for federal employees across all General Schedule (GS) grades and agencies stands at approximately $97,456 per year, according to the most recent data from the U.S. Office of Personnel Management (OPM).

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But this figure is just the starting point. A deeper dive into federal employees' salaries reveals a wide range of earning potential depending on factors like location, job function, pay grade, and even the agency where one works. In this complete guide, we break it all down to help you better understand how federal pay works in 2025—and what you can expect if you’re considering a federal career.

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2025 Outlook

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In 2025, the Biden administration proposed a 4.7% average pay raise for federal civilian workers—part of an ongoing effort to stay competitive with the private sector. This includes:

• A base pay raise of around 2.6%
  
  
• Locality pay increases of up to 2.1%, depending on region
  
  

These adjustments help ensure that the average salary for federal employees keeps pace with inflation and talent market demands.

Additionally, there’s increasing support for:

• Expanding pay flexibilities in hard-to-fill fields (IT, healthcare)
  
  
• Modernizing classification systems
  
  
• Improving transparency in promotional pay
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Key Factors That Affect the Average Salary for Federal Employees

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Understanding what influences the average salary for federal employees isn’t just helpful—it’s essential for anyone planning to join or grow within the U.S. federal workforce. While the average salary sits at around $97,456 in 2025, individual pay can vary dramatically depending on a range of factors. Let’s break down the most critical ones:

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1. Geographic Location and Locality Pay

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One of the most significant influences on a federal employee's pay is where they work. Unlike many private sector jobs, the federal government uses a locality pay system to adjust salaries based on the cost of living in specific geographic regions.

There are currently 50+ locality pay areas across the U.S., and each has its percentage increase added to the base General Schedule (GS) pay. For example:

• The Washington D.C. metro area offers a local increase of over 32%
  
  
• San Jose, San Francisco, and Oakland, CA go as high as 44.15%
  
  
• The rest of the U.S. (RUS) areas receive about 16.82%
  
  

This means that two employees at the same GS grade and step can earn thousands of dollars more or less annually, depending on their location. So, when analyzing the average salary for federal employees, regional pay adjustments play a crucial role.

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2. General Schedule (GS) Grade and Step Level

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The backbone of federal employee compensation is the General Schedule (GS) system, which defines pay grades and steps within each grade.

• Grades range from GS-1 (entry-level) to GS-15 (senior-level)
  
  
• Steps range from 1 to 10 within each grade, and reward time in service and performance.
  
  

Each step increase generally results in a 3% pay raise, and employees typically progress a step every 1 to 3 years, depending on agency policies and performance evaluations.

Let’s take an example:

• A GS-7 Step 1 earns about $40,082 (base pay in 2025)
  
  
• A GS-7 Step 10 earns around $52,106
  
  

That’s a $12,000+ difference—without even changing grade level. As federal workers advance in grade (through promotion or reclassification), their earnings can increase significantly.

So, a GS-13 Step 5 program manager in New York City might earn well over $120,000/year, especially with locality pay added.

This structured scale ensures transparency, fairness, and predictability in how federal employees’ salaries grow over time.

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3. Job Function and Occupational Series

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The nature of the work you do in the federal government also plays a major role in determining your salary. The federal government classifies jobs into “occupational series”, each with its own expected qualifications, grade levels, and pay potential.

High-demand and specialized job series often command higher entry-level grades or are eligible for special pay rates. Examples include:

• Information Technology (2210 series) – due to high private sector competition
  
  
• Healthcare roles (e.g., 0602 Medical Officers) – due to medical credentialing
  
  
• STEM positions (e.g., 0801 Engineers, 1301 Physical Scientists) – due to the technical expertise required
  
  
• Law and Legal Roles (0905 Attorneys) – which may begin at GS-11 or higher
  
  

Additionally, the government may offer recruitment incentives or critical pay authority in hard-to-fill positions. That’s why the list of federal employees’ salaries shows considerable differences even among employees with similar grade levels, because job function matters.

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4. Federal Agency or Department

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Not all federal agencies are structured the same. While most civilian roles follow the GS pay scale, some agencies operate alternative compensation systems that can boost pay and flexibility.

Examples:

• Department of Defense (DoD) uses systems like AcqDemo and DCIPS with broader pay bands.
  
  
• Veterans Affairs (VA) pays nurses and doctors on the Title 38 pay scale, which is often higher.rThe
  
  
• Federal Aviation Administration (FAA) and the Securities and Exchange Commission (SEC) have their unique pay systems.
  
  

Some agencies also offer:

• Retention bonuses
  
  
• Student loan repayment programs
  
  

Additional leave accrual for prior military or government service

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5. Years of Service and Experience

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Tenure matters a lot in the federal space. Not only does time-in-service influence step increases, but it also qualifies employees for promotions and grade upgrades.

Federal employees can be promoted:

• Within the same series (e.g., GS-9 Program Analyst to GS-11 Program Analyst)
  
  
• Through competitive selection into higher-level roles
  
  
• Via career-ladder positions, which automatically promote employees after set intervals
  
  

More years of service can also unlock:

• Higher retirement annuities
  
  
• Eligibility for Senior Executive Service (SES) roles
  

Additional leave accrual

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6. Educational Background and Certifications

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While federal hiring focuses on qualifications over degrees, certain jobs—especially technical or policy-heavy roles—require or prefer advanced education.

• Entry at GS-9 or GS-11 is often possible for those with master’s degrees.
  
  
• Specialized certifications (e.g., PMP, CISSP, CPA) can lead to higher-level opportunities.
  
  
• Bilingual or multilingual employees may receive language pay differentials.
  
  

In effect, your background can directly influence the starting grade and speed at which you move through the system—making a long-term impact on your average federal salary.

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7. Special Pay Rates and Premium Pay

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Some jobs or regions require special pay rate tables authorized by OPM. These are designed to recruit and retain talent in competitive labor markets or for mission-critical roles.

Examples include:

• Engineers in remote locations
  
  
• Cybersecurity specialists in metropolitan hubs
  
  
• Medical professionals in underserved regions
  
  

Additionally, certain jobs are eligible for

• Overtime pay
  
  
• Holiday premium pay
  
  
• Night differential pay
  
  
• Hazard pay (for roles in dangerous or challenging environments)
  
  

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Final Thoughts

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While the average salary for federal employees in 2025 is a solid starting point at around $97,456, your compensation story goes beyond just the paycheck. As a federal employee, your pension plan, TSP (Thrift Savings Plan), and other federal benefits are integral parts of your overall compensation package. However, many federal employees overlook the long-term value of these benefits until they are nearing retirement, which can lead to missed opportunities.

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That’s where Federal Pension Advisors comes in.

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Our team specializes in guiding federal employees through the complexities of their retirement benefits. We help you optimize your pension, make the most of your TSP contributions, and ensure that you are planning for a financially secure future, whether you are thinking about retirement soon or years down the road!

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