Federal Compensation Comparability: Need for Congressional Action

Most federal employees' pay is governed by the legislated principle of comparability with pay in the private sector. Nonfederal pay rates vary among geographic areas, types of industries, size of establishments, and occupations. Provisions of the federal pay-setting processes generally prevent the government from considering such variances. This results in overpayment or underpayment of federal employees in specific occupations or localities and affects the credibility of the concept of comparability.