WG Pay Raise 2025: The Key Updates from OPM

Wage Grade (WG) employees across federal agencies can expect an average pay raise of about 2.17% in 2025, according to guidance based on the Office of Personnel Management (OPM) pay adjustment structure.

This increase is composed of:

• 1.7% base pay raise – applies uniformly to all eligible federal employees.
  
  
• 0.3% average locality pay boost – accounts for cost-of-living differences based on where employees work.
  
  

While the actual impact will vary by location and grade, the combined effect brings the average total increase to roughly 2.17%, helping federal WG workers maintain financial stability in the coming year.

Tip: Changes in your pay can directly affect your “High-3” pension calculation and overall federal retirement benefits. Understanding these updates early helps you plan smarter.

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What Is the WG Pay Raise 2025?

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The WG pay raise refers to the scheduled increase in pay for employees under the Federal Wage System (FWS), commonly known as Wage Grade (WG) workers. These employees typically hold trade, craft, maintenance, or labor-based positions.

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In 2025, federal civilian workers on the General Schedule (GS) are receiving an average 2.0% raise, including a 1.7% across-the-board base increase and about a 0.3% locality adjustment.

While the WG system operates separately from the GS, pay adjustments for WG employees often mirror GS patterns to maintain pay alignment across agencies. Therefore, most WG employees can expect a similar average 2.17% pay increase, subject to locality variations.

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Official Source Confirmation for the 2025 Raise

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While the WG pay system follows the Federal Wage System (FWS), the annual adjustment closely mirrors the General Schedule raise authorized by the President. The 2025 civilian raise is 1.7% base pay plus an average 0.3% locality adjustment, which comes from the official presidential alternative pay plan and OPM guidance. Once OPM publishes updated schedules, all associated WG, WL, and WS schedules follow shortly afterward.

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GS vs. WG Workers

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In the U.S. federal pay system, GS and WG represent two distinct employee classifications:

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Although both groups typically benefit from the same across-the-board adjustments, WG raises are finalized following local prevailing rate surveys approved by the DoD Wage Committee.

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WG, WL, and WS Pay Classifications

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The Federal Wage System includes three major pay categories:

• WG (Wage Grade): Non-supervisory trades, craft, and labor jobs
  
  
• WL (Wage Leader): Employees who lead teams but do not have full supervisory authority
  
  
• WS (Wage Supervisor): Full supervisory positions in trades and labor occupations
  
  

All three—WG, WL, and WS—generally receive the same annual pay adjustments, although actual rates depend on local prevailing rate surveys.

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Important Facts About the WG Pay Raise 2025

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• Average Increase: ≈ 2.17% for most WG employees.
  
  
• Across-the-Board Base Raise: 1.7% nationwide.
  
  
• Locality Adjustment: ≈ 0.3%, varying by geographic area.
  
  
• OPM Guidance: Follows the 2025 federal civilian pay adjustment formula.
  
  
• Implementation: Typically effective with the first pay period beginning after January 1, 2025, though some wage areas may face minor delays pending committee approval.
  
  
• Pension Impact: Increased base pay raises future retirement and “High-3” averages.
  

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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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Impact on Premium Pay (Overtime, Night Pay, Sunday Pay)

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Because WG employees are paid hourly, any increase to your base rate also increases:

• Overtime rates (1.5× base pay)
  
  
• Night shift differential (7.5% or 10%)
  
  
• Sunday premium pay (25% additional)
  
  
• Holiday premium pay (double time)
  
  

This means your total yearly earnings can increase more than the basic 2.17% raise once premium hours are included.

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Also read - federal pay increase 2026

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2025 WG Pay Scale (Estimated Examples)

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These rates are illustrative. Actual pay tables differ by locality and agency, as determined by the Federal Wage System and published by OPM.

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Locality Examples for 2025 (Illustrative)

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Actual WG pay varies heavily by wage area. Below are sample estimated ranges (not official tables):

• High-Cost Area Examples
  
  
  • San Francisco Wage Area: WG-10 approx. $34.00–$39.50/hr
    
    
  • Washington DC Area: WG-10 approx. $30.50–$36.00/hr
    
    
• Average-Cost Area Examples
  
  
  • Atlanta Wage Area: WG-10 approx. $27.00–$32.00/hr
    
    
• Low-Cost Area Examples
  
  
  • Oklahoma City Wage Area: WG-10 approx. $24.00–$28.50/hr
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  • These numbers will change once OPM and DCPAS release the official 2025 locality-specific wage tables.
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How the WG Pay Raise 2025 Is Calculated

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Step 1: Apply the Across-the-Board Base Raise

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Every WG employee receives a 1.7% increase to their base hourly rate.
Example: If your base pay is $25.00/hour, add 1.7% ($0.43) → $25.43/hour.

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Step 2: Add the Locality Adjustment

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Then, apply your area’s locality rate (average ≈ 0.3%).
Example: $25.43 × 0.3% = $0.08 additional → $25.51/hour total.

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Step 3: Determine Your Actual Raise

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Combining both factors results in an average ≈ 2.17% increase, though high-cost localities may see slightly more.

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How Prevailing Rate Surveys Determine WG Pay

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WG pay is not set by national policy alone. It is determined by:

1. Local Wage Surveys conducted by the Department of Defense
   
   
2. Review and approval by the DoD Wage Committee
   
   
3. Establishment of wage schedules for each wage area
   
   
4. Final publication by OPM
   
   

Survey teams review private industry wages for similar jobs in your local area.
That’s why WG rates differ significantly across wage areas and why some tables take longer to update.

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Why Some WG Raises Are Delayed

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While most agencies implement the new rates promptly, some localities may experience delays due to wage survey and committee timing.

• The DoD Wage Committee must approve local prevailing-rate surveys before OPM issues final tables.
  
  
• Temporary administrative pauses in certain wage areas can slow publication.
  
  
• These are delays, not cancellations; back pay is typically provided once rates are finalized.
  
  

If you’re a WG employee nearing retirement, delayed raises can temporarily affect your High-3 average salary and pension estimates. Reviewing your retirement plan can help you stay on track.

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Retroactive Back Pay for WG Employees

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If your locality’s wage schedule is delayed:

• You will still receive the full raise
  
• Back pay is issued retroactively
• Back pay covers:
  
  
  • Regular pay
    
  • Overtime
    
  • Night differential
    
  • Sunday premium pay
    
  • Holiday pay
    
    

This ensures all employees receive the raise effective from the correct implementation date, even if the tables are published late.

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Access the Official 2025 WG Pay Tables

You can find the most current official data here:

• OPM Salaries & Wages Portal – Official federal wage system tables and guidance.
  
  Defense Civilian Personnel Advisory Service (DCPAS) – Local wage area schedules for DoD employees.

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2024 vs. 2025 WG Pay Raise Comparison

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Many employees want to compare year-over-year increases. Here’s a quick overview:

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2024 saw one of the largest raises in 20 years, while 2025 returns to more typical annual alignment.

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Why It’s a Good Time to Review Your Federal Pension

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Because your pension is based on your “High-3” average basic pay, even a small adjustment like the 2025 raise can change long-term retirement income.
Understanding how pay, COLA, and TSP contributions interact can help you make the most of your benefits.

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High-3 Pension Impact Example

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Here’s a simple illustration of how a 2.17% raise can affect lifetime retirement income:

• Current High-3: $58,000
  
  
• 2025 Raise (2.17%): +$1,258
  
  
• New High-3: $59,258
  
  

For a FERS employee retiring with 30 years of service:

• Pension increase = 1% × 30 years × $1,258
  
  
• = $377 more per year, every year for life
  
  

This is why even “small” WG raises can significantly impact long-term retirement income.

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Why the 2025 WG Pay Raise Matters

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This year’s WG pay adjustment does more than add a few cents to each paycheck; it helps sustain the financial well-being and morale of thousands of federal blue-collar employees who keep critical operations running across defense, maintenance, and infrastructure.

Even modest raises support:

• Better cost-of-living alignment amid inflation.
  
  
• Improved employee retention and motivation.
  
  
• Competitive wage parity across federal agencies.
  
  

And for employees nearing retirement, every increase, even small, can influence FERS/CSRS pension calculations, TSP contributions, and lifetime income.

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Simplify Your Pay and Pension Planning with Expert Guidance

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Understanding your pay schedule is just one piece of your long-term financial puzzle. Whether you’re a federal employee, retiree, or nearing retirement, aligning your payroll frequency with your benefits, taxes, and pension contributions can make a big difference.

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At Federal Pension Advisors, we specialize in helping federal employees make the most of their pay, benefits, and retirement options from FERS & CSRS pension calculations to Social Security coordination, TSP optimization, and retirement income planning.

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Get personalized guidance on how your 2025 raise impacts your take-home pay, taxes, and pension.
Plan ahead for COLA, retroactive pay, and future pay-scale changes.
Maximize your federal benefits with expert-backed strategies.

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Book your free consultation today and discover how to turn your 2025 WG raise into a stronger retirement plan.

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Final Thoughts

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The WG Pay Raise 2025 offers a modest but meaningful boost for federal wage employees. Beyond a paycheck bump, it influences your pension base, Thrift Savings Plan contributions, and long-term financial outlook. Stay informed, monitor OPM updates, and review your retirement plan early to make the most of these adjustments.

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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.