Human Capital: Characteristics and Administration of the Federal Wage System

In this report, the administration of the Federal Wage System (FWS) is reviewed—the government’s pay system for trade, craft, and labor hourly employees. Additionally, the characteristics of the system, such as which occupations and geographic areas are covered under it were examined.

The FWS was originally intended to set these employees’ pay rates in line with local market rates. However, subsequent congressional actions have linked FWS pay adjustments to those of the General Schedule pay system—the system that covers federal salaried workers. Agency officials said this has resulted in FWS pay rates that are below or above local market rates.