If you’ve ever dreamed of landing a government job for the stability and benefits, you’re not alone. Yet plenty of people hit a wall when they finally see the pay: those classic GS (General Schedule) salary charts. Why does a job that demands a college degree, security clearance, and a mound of paperwork still pay less than a big corporation’s entry-level gig? Let’s get down to why GS salaries are so low, the oddities behind the numbers, and why smart, talented people still line up for these positions.
The Structure of GS Salaries: What’s Really Behind the Numbers?
The GS system is like a time capsule from another era, first set up in 1949. There are 15 grades, and each grade has 10 steps. But here’s where it gets interesting: The starting salary for a GS-5 in 2025 is $34,272. Compare that to the average salary for a recent college grad in the U.S., which is around $60,000. Public sector pay just doesn’t keep up with the private sector, but it’s not just because the government is stingy or doesn’t value its employees. Instead, it’s baked into the way federal budgets work and how pay raises get approved.
The government relies on Congress to approve budgets. Every year is a negotiation. Salaries rarely get the kind of inflation boosts you’d find in private business. For example, in 2023, federal employees got a 4.6% raise—the biggest in decades—only after years of much smaller increases. But inflation and cost of living ballooned well beyond that, eating up those raises before workers could really feel them.
Now, layering on top of the basic GS table, you have locality pay: extra money based on where you work, to account for living costs. Live in D.C. or San Francisco and you get a pretty hefty bump. But even then, it’s not enough to catch up with commercial tech or finance salaries. For example, in San Francisco, a GS-12 step 1 pulls in about $104,492 base pay (after locality adjustment), while entry-level tech jobs there routinely offer $120k, sometimes plus bonuses and stock.
The system is also glacial. Advancement isn't just about performance, but also waiting your turn. A step increase comes every one to three years. Compare that to the private sector, where negotiations and lateral moves let workers bounce up the salary ladder much faster.
And what about those big GS15s on TV shows? In reality, only about 3% of federal employees are at GS-14 or GS-15. The vast majority work between GS-5 and GS-13, where things stay modest.
| GS Level | 2025 Base Salary | Base + DC Locality | Private Avg (Comparable Job) |
|---|---|---|---|
| GS-5 | $34,272 | $44,888 | $55,000-$60,000 |
| GS-9 | $47,924 | $62,915 | $70,000-$80,000 |
| GS-12 | $74,441 | $97,457 | $110,000-$140,000 |
| GS-15 | $117,518 | $153,750 | $180,000-$250,000 |
So, the real question isn’t why GS salaries are low, but why the system is so stuck in the past. For every debate in Congress about raising the pay, there’s always the budget hawks warning about costs. And every time there’s pushback, the pay falls even further behind.
All these factors—the age of the system, reliance on Congress, slow raises, and limited step jumps—combine to trap GS salaries in a cycle most workers feel powerless to break.
Why People (Still) Choose Government Jobs Despite Low Salaries
If you’ve ever talked to someone who works in government, you’ll notice a pattern. They didn’t jump into it for the big bucks, and they’ll say things like, “It’s stable” or “I love making a difference.” Despite salary gripes, people still flock to GS roles, and yes, there are some good reasons for that.
First up: job security. During the chaos of 2020’s economic downturn, when private companies were laying people off by the thousands, federal workers mostly hung onto their jobs. Layoffs are rare, and many roles are hard to automate away.
Second: benefits. Even if GS pay seems low, the health insurance programs are generous (the Federal Employee Health Benefits program covers about 9 million people). Retirement plans like the Thrift Savings Plan (TSP) are considered gold-standard. Federal employees get a pension—a luxury hardly anyone in the private sector can expect these days.
There’s also paid time off. Your standard GS worker gets about 13 to 26 vacation days plus 11 federal holidays. That’s a lot more than most corporate offers, where vacation days are often stingy.
So why the trade-off? People who want work-life balance, need reliable hours, or value meaningful missions (like public safety, research, or service) see these as worth the pay cut.
But I’m not just defending GS jobs. I get the frustration. A buddy of mine, an analyst at GS-9, told me he spends every third lunchtime updating his spreadsheet dreams—comparing what he could make in the private sector, tweaking scenarios. But when his kids got sick this spring, and he needed multiple days off, he found himself grateful for the flexibility and job security. It’s a weird place to be: anxious about salaries, but not quite willing to jump ship.
Some families get creative. My friend Samantha’s husband is a GS-12; she works remotely in tech. Between their two incomes, they juggle paying the mortgage and planning for kids’ college. This blending is actually common: one spouse in government for the benefits, the other chasing private sector cash. It’s not perfect, but it’s a survival hack for the 2020s.
GS salaries are also sticky for career changers. Once you’re in the system, moving up can feel like watching grass grow, especially if you keep getting told, “wait your turn.” There’s a running joke in D.C. that the fastest way to get a big raise is to quit, then reapply for a higher GS spot months later.
I’ve also met plenty of folks who hold out for retirement, where the government’s pension finally starts to make the low salaries feel worth it. That carrot at the end of the stick keeps people hanging on.
- Valuable benefits (retirement, health insurance, vacation days)
- True work-life balance (predictable schedule, rare overtime requirements)
- Mission-driven roles that feel rewarding
- Lower risk of layoffs or sudden unemployment
But if you’re in it mostly for the money? Government work probably isn’t your dream ticket. It’s best suited for people who prioritize stability and mission, or who pair their income with a higher-earning partner.
How to Get the Most Out of GS Jobs (And What Needs to Change)
You can’t force Congress to double GS salaries with a snap of your fingers. But you can get strategic if you’re determined to make federal work pay off. Knowing where and how to play the game makes a huge difference.
Location matters. A job listed as GS-12 is worth a lot more in San Francisco or New York than Alabama or Kansas, thanks to locality pay. People have been known to “geo-arbitrage”—apply for a federal job in a high locality pay region, work remotely, and live somewhere with a lower cost of living. The rules about remote work keep changing, especially after the pandemic, but where possible, this is a smart move.
Promotions are slow, but sometimes you can jump rungs faster by applying for jobs outside your current agency. Networking helps, and with government’s labyrinthine hiring system, a well-placed connection who tips you off about openings is gold.
Stacking skills is another hack. Learning technical skills—cybersecurity, data analysis, or rare languages—will vault you beyond the average applicant. In recent years, agencies have had to compete with private tech firms for digital talent, and they’re offering bonuses or special pay for these rare niches.
Another angle? Side hustles. As long as they don’t conflict with your day job, outside gigs are fair game. Lara, for example, teaches yoga classes on weekends. We know another guy, Daniel, who writes code for small businesses after hours. Just be sure to check for conflicts of interest.
If you’re hoping for fresh reform, you’re not crazy—there’s buzz about overhauling the pay system. Lawmakers float the idea every few years. Sometimes, unions put the pressure on, pointing to the pay gap data. In 2022, the U.S. Office of Personnel Management reported that federal pay lagged the private sector by about 23%. With a tight labor market, some agencies got special allowances to recruit talent, but big systemwide reform? Still stuck in the slow lane.
What would actually help?
- Overhauling the GS grid to catch up with the private sector (especially in high-demand fields)
- More flexible pay for high-cost regions and hard-to-fill jobs
- Faster step raises or reward bonuses for stellar performance
- Streamlining hiring so qualified people don’t give up because of bureaucratic delays
Until those changes land, the best advice is to go in with your eyes wide open. If you decide GS life is right for you, push for every bonus, every locality adjustment. Don’t settle for a slow promotion if you can find a new opportunity elsewhere. And if you stay, make sure you’re banking those benefits, stacking skills, and planning for both short-term real pay and the long game of retirement perks.
The GS system isn’t likely to transform overnight. But understanding its quirks (and knowing how to play it) can be the difference between feeling stuck and actually getting something out of it. For many, the trade-offs are real—but at least you’ll know exactly what you’re signing up for.