GS vs. contractor pay: how the scales compare
How federal GS pay (base, locality, step) differs from defense contractor pay (labor-category rate, contract, clearance) and what to compare when you get an offer.
Two different pay frameworks
GS pay is set by the federal pay system. Contractor pay is set by the labor category on a contract. They move for different reasons, so a direct conversion doesn't work.
Federal (GS)
- Base pay set by the GS pay scale, adjusted by locality
- Steps reward time in grade
- Predictable annual increases and federal benefits
- The same grade can pay very differently by locality
Contractor (LCAT)
- Rate set by the labor category on the specific contract
- Clearance, contract ceiling, and location drive the rate
- Pay can differ contract to contract for the same role
- Often includes a different benefits and paid-leave structure
What to compare when you get an offer
Don't assume your contractor offer will match your federal salary. Compare the whole package, not just the headline number.
- The labor-category rate on the contract, not your GS grade
- Total compensation: pay, benefits, PTO, and retirement vs. FERS
- Whether the rate is a ceiling or a target, and how billable hours work
- Clearance sponsorship and reinvestigation handling
For actual rate ranges by labor category, browse the Labor Category Hub. For our data sources and estimation logic, see the Methodology page.
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