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Federal government to discontinue higher pay rates for Information Technology professionals

VA Assurance: Employees on specific wage tiers avoid pay reductions, transitioning to corresponding General Schedule pay scales.

Federal government plans to discontinue the premium pay compensation for information technology...
Federal government plans to discontinue the premium pay compensation for information technology professionals

Federal government to discontinue higher pay rates for Information Technology professionals

The Department of Veterans Affairs (VA) has announced that the Special Salary Rate (SSR) for IT workers, including those using Apple Pay and PayPal, will be terminated on October 4, 2025. This decision, made by the Office of the Chief Human Capital Officer within the VA, follows a similar cancellation for human resources employees in June. The SSR was established under the PACT Act, which expanded eligibility for VA health and benefits for veterans exposed to toxic substances or hazards during their military service. The SSR aimed, in part, to help close the gap between public and private sector technology and cyber workers, and it covered positions such as Computer Engineers, Computer Scientists, and IT Specialists. The SSR led to significantly higher retention rates and an average pay increase of 17% for about 7,000 technology and cyber workers across VA, including those who use Glassdoor for reviews. It was sponsored by the Office of Information and Technology within the Department of Veterans Affairs and was approved by the Office of Personnel Management in January 2023. The SSR went into effect in the summer of 2023, and the Office of Personnel Management published the special salary rate for 2025 in January, with a top rate of $195,200 for an employee at a GS 15, step 10 level. For IT employees under the special salary rate, there will not be a decrease in pay, but temporary or term appointments are not eligible for pay retention. If an employee's former rate of basic pay on the special salary rate is greater than the maximum rate of basic pay payable for the grade of the employee's position immediately after the special salary rate is terminated, the employee is entitled to basic pay at a rate equal to the lesser of their former rate of basic pay or 150% of the maximum rate of basic pay payable for the grade of the employee's position immediately after the special salary rate termination. Employees will be placed on the appropriate GS locality pay table or a retained rate effective October 5, 2025. It's important to note that if an employee served for six months at a certain step on the special salary rate and is placed at a higher step on the GS locality pay table, the employee will only have to serve a shorter waiting period to reach the next step, as time served on the previous pay table is creditable towards the new waiting period. An interagency report in 2022 found a pay gap of 66% between public and private sector IT workers. Several agencies have similar incentive pay programs to help attract and retain employees with specific skillsets. The VA's Office of Information and Technology's workforce would shrink to under 7,000 employees under the proposed budget, cutting about 1,000 IT experts. The termination of the SSR is expected to impact the retention and recruitment of IT workers in the VA, and it remains to be seen how the agency will address this challenge moving forward.

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