GS Step Increases: Schedule, Waiting Periods, and FERS Pension Impact (2026)

Every federal employee on the General Schedule (GS) pay scale advances from Step 1 to Step 10 within their grade — one step at a time, based on time-in-grade and performance. Most employees receive step increases on autopilot. But understanding the schedule, the rules, and the FERS pension math can meaningfully affect your lifetime retirement income. Here's how it works.

How within-grade increases (WGIs) work

A Within-Grade Increase (WGI) — sometimes called a "step increase" or WIGI — is an automatic pay raise that moves a GS employee up one step within their grade. It is not a promotion; it doesn't change your grade or your job duties. It simply increases your salary within the existing pay band for your grade.

WGIs are automatic in the sense that your agency doesn't decide whether to give them — they're required by law once you meet two conditions:¹

1. You've completed the required waiting period at your current step (the table above).
2. Your performance is at an "acceptable level of competence" — in most agencies this means a "Fully Successful" rating or its equivalent. You don't need to be an outstanding performer to receive your WGI on schedule; you just can't be at "Unacceptable."

There is no budget approval process. No supervisor discretion. If you're at Step 3, you've been there for 52 weeks, and your performance rating is Fully Successful or above, the WGI processes automatically on your anniversary date.

From Step 1 to Step 10: the full 18-year timeline

An employee who joins at Step 1, maintains acceptable performance, and receives no special increases will complete the progression to Step 10 in exactly 18 years:

• Steps 1–4: three 1-year waits = 3 years total
• Steps 4–7: three 2-year waits = 6 years total
• Steps 7–10: three 3-year waits = 9 years total

This is the slowest track. Quality Step Increases (QSIs), promotions to higher grades, and lateral transfers at a higher step can all shorten the path. Many experienced federal employees arrive at their final grade already well up the step scale — meaning they reach Step 10 well before 18 years of total service.

Performance requirements: what "acceptable level of competence" means

The statute (5 U.S.C. §5335) uses the phrase "acceptable level of competence" (ALC) — defined in regulations as the employee performing at or above the minimum level required to avoid a performance improvement plan (PIP).² In practice, this translates to:

• A "Fully Successful" rating (or Level 3 under a 5-level system) — meets your WGI requirements
• "Minimally Successful" (Level 2) — typically still qualifies for WGI; agencies can determine this case-by-case
• "Unacceptable" (Level 1 or equivalent) — WGI is withheld; the clock pauses until performance improves

Your agency must notify you at least 60 days before a scheduled WGI if it intends to withhold the increase. If you receive no notice, the WGI processes. If it's withheld, you must be told why and given the opportunity to improve. Once your performance returns to ALC, the WGI is granted within 52 weeks — you don't have to restart the full waiting period from zero.²

Quality Step Increases (QSIs): faster advancement for top performers

A Quality Step Increase is a discretionary, immediate one-step advance available to employees who demonstrate "high quality performance" — typically a "Outstanding" or "Exceeds Fully Successful" rating at the top of your agency's performance scale.³

Key mechanics:

• Immediate effect: the QSI takes effect immediately; you don't wait for an anniversary date
• Clock reset: the new WGI waiting period starts from the QSI date — your previous accrued time is lost
• Frequency: no more than one QSI per 52-week period per employee (you can't stack two QSIs in the same year)
• Budget discretion: agencies control the total number of QSIs they grant; not all high performers receive one even if eligible
• Cap at Step 10: employees already at Step 10 cannot receive a QSI (there is no Step 11)

Step increases and promotions: how they interact

A promotion to a higher GS grade is different from a step increase within a grade. When you're promoted:

• Your new salary is set at the lowest step in the new grade that provides at least a 2-step-equivalent increase over your previous rate (the "two-step promotion rule" under 5 CFR §531.214)
• Your WGI waiting period restarts at the new grade and step
• The time you served at the prior grade's step does not carry over

Example: A GS-13 Step 8 employee promoted to GS-14 will typically land at GS-14 Step 2, 3, or higher (depending on locality adjustments and the two-step rule). They start a new 52-week WGI clock to GS-14 Step 3.

For employees on a steep grade-promotion track, step increases matter less — you're often promoted before completing the grade's full progression. For employees who reach their terminal grade (the highest grade they'll achieve), step increases become the primary mechanism for salary growth and, by extension, high-3 salary growth.

FERS pension impact: why step increases matter beyond your paycheck

This is where step increases have outsized long-term importance. Your FERS basic annuity is calculated as:

FERS Annuity = Multiplier × Years of Service × High-3 Average Salary

Where the multiplier is 1% for most employees (1.1% if you retire at age 62 or later with 20+ years of service). The high-3 average salary is the single most influential number in this formula — the average of your highest three consecutive years of basic pay, weighted by OPM's 360-day method.

Every step increase that occurs in your final three years of service raises your high-3 — and raises your FERS annuity permanently, for the rest of your life.

The table shows a key asymmetry: getting a step increase into your high-3 window helps — but how much depends on when the increase falls within your 36-month averaging window. An increase at the very start of your high-3 window is weighted for all 36 months; an increase at month 24 is weighted for only 12 months.

Should you delay retirement to capture a step increase?

This is one of the most common questions federal employees ask as they approach retirement. The answer depends on three factors:

1. How far away is your next WGI?

If you're 6 weeks from a step increase, waiting is a near-certain positive: you gain the higher salary in your remaining paychecks, your FERS annuity increases, and your annual leave lump sum pays out at a higher rate. If you're 130 weeks away (just missed a step increase), the calculus is very different — you'd wait 2+ years for a modest annuity improvement.

2. Where does the step increase fall in your 36-month high-3 window?

Use the FERS High-3 Calculator to model your exact high-3 under two scenarios: retire now vs. retire after the next step increase. The calculator accounts for OPM's 360-day weighted averaging and compares the pension impact side by side.

3. What's the opportunity cost of waiting?

Every month you delay retirement, you're working instead of collecting your FERS annuity. That foregone income must be weighed against the lifetime pension increase. A rough rule of thumb: if the step increase adds $X/year to your pension, and delaying costs you $Y/month in foregone retirement income, the break-even time is approximately (months of delay × $Y) ÷ $X years of future pension.

Step increases and annual leave payouts

Your annual leave lump sum at retirement is calculated at your hourly rate of basic pay at the time of separation — your final salary, including any step increases that have already taken effect. Waiting even a few weeks for a step increase to process before submitting your retirement date can raise your entire leave balance payout.

At GS-14 with the DC locality differential, each additional step increases your hourly rate by approximately $2.35–$2.50. If you have 240 hours of unused annual leave, a one-step increase raises your leave payout by approximately $565–$600 before taxes. Small, but real — and it's permanent income, not traded off against anything.

Use the Annual Leave Payout Calculator to model this with your specific balance and salary.

Part-time employees and step increases

For most regular part-time employees (those on a scheduled tour of duty), the WGI waiting periods are measured in the same calendar weeks as for full-time employees. Working half-time does not extend your step increase clock — you accrue waiting time at the same rate.⁴

However, the salary at each step is prorated to your part-time schedule. A GS-14 Step 3 at 50% time earns half the GS-14 Step 3 rate. The step increase still happens on the same schedule — it just applies to the prorated rate. This also means the FERS pension impact of each step increase is smaller, because FERS uses your rate of basic pay (not actual earnings) for the high-3 — but a part-time schedule reduces the rate of basic pay itself under OPM proration rules. See our FERS part-time retirement guide for the full proration mechanics.

Intermittent employees: a different rule

Employees on intermittent schedules (no fixed tour of duty) accrue WGI waiting time based on hours worked, not calendar weeks. The equivalent waiting periods are 2,080 hours (Steps 1–3), 4,160 hours (Steps 4–6), and 6,240 hours (Steps 7–9) — mirroring the 1/2/3 year calendar-week structure but measured in actual hours on duty.¹

Your step increase history and retirement calculations

Your Step Increase Information appears on your Leave and Earnings Statement (LES) and in your agency's HR system. OPM uses your pay history — the specific dates and rates — when calculating your FERS high-3 during retirement processing. It's worth reviewing your SF-50 (Notification of Personnel Action) history annually to confirm your step and WGI anniversary date are recorded correctly, particularly if you've had intermittent leaves of absence or agency transfers.

Errors in step history are uncommon but do happen. A missing WGI entry can mean a lower high-3 salary — and a permanently lower pension. If your step advance date seems off, contact your HR office before submitting retirement paperwork rather than after. Correcting post-retirement is possible but slower.

Connecting step increases to your full retirement plan

Step increases are one of several variables a federal-benefits specialist incorporates when helping you choose a retirement date. Others include:

• Promotions or locality pay changes expected in your final 36 months
• End-of-leave-year deadline for annual leave lump sum maximization (January 9, 2027 for Leave Year 2026)
• End-of-month annuity start rule — FERS annuities start the first of the month after separation, so late-month separations usually waste a month
• FEHB 5-year rule, TSP Rule of 55, and FERS supplement MRA eligibility — all interact with retirement date

See our When to Retire from Federal Government guide for a full six-variable timing framework, and the FERS High-3 Calculator to model different retirement dates and their effect on your pension.