WG Pay Raise 2025: The Key Updates from OPM

Wage Grade (WG) employees across federal agencies can expect an average 2.17% pay raise in 2025, as outlined by the Office of Personnel Management (OPM). This increase is split into two parts:

• A 1.7% base pay raise that applies uniformly to all WG employees.
  

• A 0.3% boost through locality pay, which adjusts earnings based on where an employee is stationed, accounting for regional cost-of-living differences.

• While the exact impact will vary by location, the combined effect brings the average increase to 2.17%, helping federal WG workers maintain financial stability in the coming year.

Discover more updates around the WG Pay Raise 2025 and how this will shape your retirement benefits. 

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What is the WG Pay Raise 2025

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WG pay raise refers to the increase in pay of the employees within the federal wage system, commonly known as Wage Grade employees.

In 2025, federal employees on the General Schedule (GS) will earn an average 2% raise, which includes a 1.7% overall increase and a 0.3% locality pay adjustment. 

This means that salary-grade employees who are not part of the GS system are also expected to receive an equal raise based on the uniform salary adjustment and locality pay guidelines.

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GS vs. WG Workers

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In the U.S. federal government, GS (General Schedule) and WG (Wage Grade) are two different pay systems for different kinds of jobs. GS jobs are mostly office-based, like administrative or professional roles, and the pay is given as a yearly salary. WG jobs are more hands-on, like trades, maintenance, or labor work, and the pay is usually hourly.

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Important Facts Around WG Pay Raise 2025

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Average Increase: Federal Wage Grade (WG) employees are expected to receive an average 2.17% pay raise in 2025.

Across-the-Board Raise: This includes a 1.7% general increase for all WG employees, regardless of location.

Locality Pay Adjustment: An additional 0.3% is added based on the employee’s geographic location to reflect cost-of-living differences.

Based on the GS Model: Although WG employees are not part of the General Schedule (GS) system, their pay adjustments often mirror GS patterns.

OPM Guidance: These figures follow the latest guidance from the Office of Personnel Management (OPM).

Effective Timeline: Raises typically go into effect at the start of the calendar year, though exact dates may vary based on agency implementation.

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Wage Grade employees changes to your pay could affect your pension calculations.* Get clarity before it's too late * book your free pension review today.

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Why it Matters

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The WG pay raise 2025 isn’t just a number it directly impacts the livelihood, motivation, and retention of thousands of federal blue-collar workers. With rising living costs across the country, even small adjustments in hourly pay help ensure employees can keep up with inflation, support their families, and feel valued for the essential work they do. It also helps agencies remain competitive in attracting skilled labor in today’s job market.

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wg pay scale 2025

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The wage grade pay scale 2025 is part of the federal wage system used primarily by blue-collar federal workers and defense-related positions. While specific tables for WG pay grades in 2025 may vary by locality and classification, the general update for military and federal pay in 2025 reflects a 4.5% increase, with an additional 10% raise for junior enlisted military personnel.

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For the most accurate and official wage grade pay scale for 2025, including locality-based adjustments, the Office of Personnel Management (OPM) and Defense Finance and Accounting Service (DFAS) publish detailed tables.

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If looking specifically for the WG pay scale tables for 2025, they can be found in official OPM Wage Grade locality pay tables or DCPAS wage index systems. For military pay as a reference, a 4.5% general raise plus extra 10% for lower ranks applies in 2025.

To summarize:

• WG pay scales are published by OPM with locality pay adjustments.
• The 2025 pay scales generally include a 4.5% increase over 2024 rates.
• For full details, consult official OPM or DCPAS wage grade pay tables for 2025.

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Key Points About 2025 WG Pay Scale

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• The WG pay scale is set by the Office of Personnel Management (OPM) and adjusted annually.
• The 2025 WG pay scales reflect a nationwide average increase, commonly around 4.5%, with locality adjustments based on geographic location.
• The exact pay for each WG grade (WG 1 through WG 15) varies by step within the grade and locality pay adjustments, which can significantly increase base wages in high-cost areas.
• WG pay typically applies to blue-collar federal employees, including defense-related roles.

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Access Official 2025 WG Pay Tables

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• The best official source for 2025 WG pay scale data is the OPM website's "Salaries & Wages" section, which publishes federal wage system tables including locality pay:
  OPM Salaries & Wages
• The Department of Defense's Defense Civilian Pay System (DCPAS) Wage Grade pay schedules also provide detailed pay charts:

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How is the WG Pay Raise 2025 Calculated

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Step 1: Apply the Across-the-Board Increase

• All WG employees receive a 1.7% base pay raise.
  
  
• This is added to your existing base pay, regardless of where you work.
  
  

Example:
If your base hourly rate is $25.00, a 1.7% increase adds $0.425, making it $25.425.

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 Step 2: Apply the Locality Pay Adjustment

• After the base raise is applied, a locality pay percentage is added.
  
  
• This percentage depends on your geographic area (urban areas usually have higher rates).
  
  

Example:
If your adjusted base pay is $25.425 and your locality rate is 0.3%, the locality adjustment adds $0.076.
New total pay = $25.501/hour

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 Step 3: Calculate Total Increase

• Total raise = (Base raise + locality adjustment)
  
  
• This amount can vary slightly across different regions.
  
  
• When averaged across all locations and employees, it results in an average national increase of 2.17%.
  
  

Note:

• Locality pay rates are determined by OPM and vary based on cost-of-living data.
  
  
• Some locations may receive higher adjustments, making their total raise exceed 2.17%.
  
  
• The 2.17% is an average, not a fixed total for every employee.

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Why the WG Pay Raise is Delayed in 2025

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While the 2025 WG pay raise has been projected at 2.17%, thousands of employees are still waiting to see the increase in their paychecks. Here’s why:

• Defense Department Wage Committee pause → By law, the DoD Wage Committee must approve local wage surveys before new rates are implemented. As of mid-2025, the committee has temporarily halted, leaving raises on hold.
• Who is impacted? → More than 60,000 WG employees across 87 local wage areas, including staff at the VA, National Park Service, and Department of Defense, are affected.
• Union response → The American Federation of Government Employees (AFGE) has criticized the freeze, calling it an unfair burden on workers who are already struggling with inflation.
• Not a cancellation, but a delay → The raises will still take effect once approvals resume, but the timing remains uncertain.

What this means for you: If you are a WG employee nearing retirement, these delays can affect your High-3 salary calculation and overall pension outlook.

Tip: Speak with a federal retirement advisor to understand how COLAs, WG raises, and retroactive pay may change your retirement benefits.

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FAQs

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1. What is WG Pay Raise 2025

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The average pay raise for Wage Grade (WG) employees in 2025 is 2.17%, which includes a 1.7% across-the-board increase and a 0.3% locality pay adjustment.

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2. Does the WG raise vary by location?

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Yes. While the 1.7% raise is uniform for all WG employees, the locality pay adjustment (around 0.3%) varies depending on your geographic location to account for regional cost-of-living differences.

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3. When will the 2025 WG pay raise take effect?

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WG pay raises typically go into effect at the start of the calendar year, usually around January, depending on the agency’s implementation schedule.

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4. What is Hourly WG pay scale

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Generally, the pay scale for WG positions is within a range of $17.31 to $21.15 across the United States, with some positions potentially earning higher or lower rates based on their contract and guidelines set by OPM. 

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Final Thoughts

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The WG Pay Raise for 2025 reflects the federal government’s ongoing effort to support its skilled workforce with fair and competitive wages. While the average 2.17% increase may seem modest, it represents a commitment to recognizing the vital contributions of blue-collar employees nationwide. As costs of living continue to shift, these pay adjustments play a crucial role in helping federal workers maintain financial stability, stay motivated, and continue delivering essential services across the country.

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