Key Issues > Federal and Private Sector Pay Comparisons
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Federal and Private Sector Pay Comparisons

A careful consideration of federal pay is an essential part of fiscal stewardship and is necessary to support the recruitment and retention of a competent, successful workforce.

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It is the policy of Congress that pay for federal workers under the General Schedule--the pay system covering the majority of federal employees—be in line with pay for comparable nonfederal workers. However, recent studies comparing the compensation of federal employees to workers in other sectors arrived at different conclusions as to which sector had the higher pay and the size of the pay disparities.

We reviewed 6 key studies issued since 2005 and determined that their findings differed because they each used different approaches, methods, and data. As a result, their findings should not be taken in isolation as the answer to how federal pay and total compensation compares with other sectors. When looking within and across the studies, it is important to understand their methodological differences because they affect how the studies can be interpreted.

Looking for our recommendations? Click on any report to find each associated recommendation and its current implementation status.
Federal Workers: Results of Studies on Federal Pay Varied Due to Differing Methodologies
http://gao.gov/products/GAO-12-564

GAO-12-564: Published: Jun 22, 2012. Publicly Released: Jul 23, 2012.
Human Capital: Continued Opportunities Exist for FDA and OPM to Improve Oversight of Recruitment, Relocation, and Retention Incentives
http://gao.gov/products/GAO-10-226

GAO-10-226: Published: Jan 22, 2010. Publicly Released: Feb 22, 2010.
Federal Housing Administration: Modernization Proposals Would Have Program and Budget Implications and Require Continued Improvements in Risk Management
http://gao.gov/products/GAO-07-708

GAO-07-708: Published: Jun 29, 2007. Publicly Released: Jun 29, 2007.

More Reports

Defense Contractors: Information on the Impact of Reducing the Cap on Employee Compensation Costs
http://gao.gov/products/GAO-13-566

GAO-13-566: Published: Jun 19, 2013. Publicly Released: Jun 19, 2013.
Federal Employees' Compensation Act: Effects of Proposed Changes on Partial Disability Beneficiaries Depend on Employment After Injury
http://gao.gov/products/GAO-13-143R

GAO-13-143R: Published: Dec 7, 2012. Publicly Released: Dec 7, 2012.
Human Capital: The Department of Health and Human Service's and Environmental Protection Agency's Use of Special Pay Rates for Consultants and Scientists
http://gao.gov/products/GAO-12-1035T

GAO-12-1035T: Published: Sep 14, 2012. Publicly Released: Sep 14, 2012.
American Samoa and Commonwealth of the Northern Mariana Islands: Employment, Earnings, and Status of Key Industries Since Minimum Wage Increases Began
http://gao.gov/products/GAO-11-427

GAO-11-427: Published: Jun 23, 2011. Publicly Released: Jun 23, 2011.
Women in Management: Analysis of Female Managers' Representation, Characteristics, and Pay
http://gao.gov/products/GAO-10-892R

GAO-10-892R: Published: Sep 20, 2010. Publicly Released: Sep 28, 2010.
Questions for the Record Related to Military Compensation
http://gao.gov/products/GAO-10-803R

GAO-10-803R: Published: Jun 3, 2010. Publicly Released: Jun 3, 2010.
Military Personnel: Comparisons between Military and Civilian Compensation Can be Useful, but Data Limitations Prevent Exact Comparisons
http://gao.gov/products/GAO-10-666T

GAO-10-666T: Published: Apr 28, 2010. Publicly Released: Apr 28, 2010.
American Samoa and Commonwealth of the Northern Mariana Islands: Wages, Employment, Employer Actions, Earnings, and Worker Views Since Minimum Wage Increases Began
http://gao.gov/products/GAO-10-333

GAO-10-333: Published: Apr 8, 2010. Publicly Released: Apr 8, 2010.
Military Personnel: Military and Civilian Pay Comparisons Present Challenges and Are One of Many Tools in Assessing Compensation
http://gao.gov/products/GAO-10-561R

GAO-10-561R: Published: Apr 1, 2010. Publicly Released: Apr 1, 2010.
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