Wage Administration (FPM 550)

225 FW 4
FWM Number
Originating Office
Division of Human Capital

4.1 Purpose. This chapter describes the Federal wage administration program and identifies sources for additional information.

4.2 Coverage. Wage administration applies to Federal prevailing rate employees. Within the Service, prevailing rate employees are individuals employed in recognized trades or crafts, or other skilled mechanical crafts, or in unskilled, semiskilled, or skilled manual labor occupations, and any other individuals, including a foremen and a supervisors, in a positions having trade, craft, or laboring experience and knowledge the paramount requirements.

4.3 Authorities. This chapter is issued in accordance with the following authorities:

A. 5 CFR 532, Prevailing Rate Systems (January 1, 1996).

B. U.S. Office of Personnel Management Operating Manual, Federal Wage System (December 2, 1994).

4.4 Operation. Wage administration is the process by which local pay rates are established for prevailing rate employees in specific geographic areas (wage areas). Within specific wage areas prevailing rates are determined by wage area surveys conducted by a lead agency designated by the Office of Personnel Management. The lead agency analyzes survey data and determines and issues required wage schedules for the wage area. Wage areas are identified in Sub Part B, Appendix A of 5 CFR 532.

4.5 Additional Information. Complete regulatory guidance regarding wage administration is found in 5 CFR 532. Employees can contact servicing personnel offices for additional or more detailed information.