Along with our other benefits, your pay is part of your federal employee compensation package. It is important to understand the pay in your desired work location, as it relates to the various grade levels offered for the position(s) you are interested in.

The General Schedule (GS) Pay System

For most of our positions, we offer competitive pay primarily based on the standardized General Schedule or GS system. Salaries are set based on the grade level and the geographic location of the position. Agencies establish (classify) the grade of each job based on the level of difficulty, responsibility, and qualifications required. Many positions are limited to what grade you can be paid at and are predetermined based on the required experience and/or education needed to qualify. Your pay is also determined by where you work in the US. Each locality adds a different percentage to your base pay and is paid to accommodate that locality’s higher cost of living. For example, employees working in Washington, DC receive a higher locality pay than employees who work in Denver, CO. You can count on your salary reflecting the relative cost of labor where you work and across the country.

The GS and Locality Pay Tables can be found at here at: Office of Personnel Management (OPM.gov).

Salary Tables for Internal Revenue (IR) Managers

The IRS Payband System is different from the General Schedule (GS) pay system. Paybands have a range of rates and do not have steps like the GS pay system. The range of rates for each payband correspond to Step 1 (minimum) and Step 10 (maximum) of a GS grade. Each January, managers are eligible for a performance based increase (PBI) which replaces the GS increase, within grade step and quality step increases.

Commonly known as performance-based pay or pay for performance, this is the pay system for IRS managers (excluding Executives). Each year managers can receive both a performance-based increase (PBI) and a performance bonus (often referred to as an award), based on their performance rating. Managers also receive locality pay applicable for their post of duty. 

Each January, managers are eligible for a performance-based increase (PBI) which replaces the GS increase, within grade step and quality step increases. The IRS Payband System has 3 levels of manager positions covered by the following paybands:

• The Senior Manager (SM) - This payband covers second-level managerial positions formerly classified at GS-14 or 15, or first-level managerial positions formerly classified at GS-14 or 15 that report directly to a member of the Senior Executive Service

• The Department Manager (DM) - This payband covers second-level managerial positions, formerly classified as GS-11, 12, or 13 grade levels.

• The Frontline Manager (FM) - This payband covers supervisory/managerial positions, formerly classified at the GS-5 through 15 grade levels, that are not covered under the SM or DM paybands.

IR Manager Payband Salary Tables are listed by locality and effective the first day of the first pay period beginning on or after January 1'st. The IR Salary and locality tables can be found here: 2024 IR Salary Tables.

Pay Increases

As a federal employee, in addition to a great starting salary, you may receive pay increases in the form of:

• Step increases
• Performance bonuses
• Annual across-the-board pay increases determined by Executive Order.

Recognition & Awards

IRS employees are among the most recognized and rewarded individuals in government. We’re proud to recognize our employees, monetarily, Based on merit, for commendable job performance, special acts or services, or other notable contributions.