The highest General Schedule (GS) salary an employee can earn is $191,900 per year.
Understanding the GS Salary Cap
While General Schedule (GS) salaries are typically determined by a combination of an employee's GS level, step within that level, and the specific locality pay area, an annual salary cap is put in place. This cap represents the absolute maximum compensation any GS employee can receive, regardless of their position, experience, or location. For 2024, this limit is set at $191,900 per year, and no GS employee can be offered or earn more than this amount under any circumstances.
This cap ensures fairness and fiscal responsibility within the federal pay system, preventing salaries from exceeding a predetermined maximum, even for the highest-level positions in high-cost-of-living areas.
Key Factors Influencing GS Salaries (Up to the Cap)
Before reaching the maximum cap, a GS employee's specific salary is calculated based on several critical components:
- GS Level: Ranging from GS-1 to GS-15, this level reflects the complexity, responsibility, and qualifications required for a position.
- Step: Each GS level has 10 steps, with increases awarded based on performance and tenure. Moving up steps within a level leads to salary increases.
- Locality Pay: This adjustment accounts for the cost of living differences across various regions in the United States. Employees in areas with a higher cost of living receive a higher locality percentage, increasing their base GS salary.
Even if the combination of a high GS level (such as GS-15), a high step (like step 10), and a significant locality pay rate would theoretically result in a salary above the $191,900 cap, the salary is always reduced to meet this maximum limit. This means that individuals in top GS positions in very expensive localities might effectively be "capped out," earning the same as those in slightly less expensive areas once they hit the maximum.
2024 General Schedule Salary Cap Summary
| Component | Amount |
|---|---|
| Salary Cap | $191,900/year |
| Effective Year | 2024 |
For detailed information on current GS pay scales, including base pay and locality adjustments, you can refer to the official U.S. Office of Personnel Management (OPM) website.
