Rest of U.S. locality pay
Rest of U.S. Pay Did Not Keep the 2001 Relationship
On the selected total-compensation basis, the O-3 profile's cumulative growth was 35.1% ahead of the selected Rest of U.S. GS-12 new-hire profile through 2026 actual data. Under the proposed 2027 forecast assumptions, the gap reaches 41.1%. The result does not prove locality policy alone caused the difference.
Last reviewed August 22, 2026
What the numbers show
- Actual first: 35.1% through 2026; forecast second: 41.1% under the proposed 2027 scenario.
- All selected Rest of U.S. GS profiles have nearly identical indexed growth because the table changes proportionally.
- The gap is descriptive evidence; causal claims require separate workforce and policy analysis.
Selected growth index: 2001 = 100
| Year | GS-12 selected basis | O-3 selected basis | Status |
|---|---|---|---|
| 2001 | 100.0 | 100.0 | Baseline |
| 2026 | 165.7 | 223.9 | Actual |
| 2027 | 165.7 | 233.7 | Forecast |
What Rest of U.S. means
OPM defines the Rest of U.S. locality area as the portions of the United States and its territories not located in another locality pay area. The 2026 table includes a 17.06% locality payment. See the official 2026 Rest of U.S. table.
Do not over-attribute the result
The indexed gap combines multiple systems. A military series can change because of basic-pay raises, BAH, BAS, or tax treatment. A civilian series can change because of base and locality adjustments and the selected FERS treatment. The model shows the combined result and keeps the components available for inspection.