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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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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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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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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