GS Pay vs Contractor Pay: How to Compare an Offer Honestly
There's no conversion formula. Compare one specific offer to your GS pay plus benefits you'd give up; the worksheet below does it in about 2 minutes.
Reviewed by the Good to Go team · Last updated 2026-10-21
Compare your offer: the worksheet
Enter your GS grade, step, and 2026 locality area to pull your locality-adjusted salary from the OPM tables, then enter the contractor offer. The worksheet computes cash, retirement match, paid days, and a break-even salary from the numbers you enter. Nothing is assumed.
Enter your GS grade and the contractor's base salary to see your comparison. The math runs in your browser; nothing is sent anywhere.
Locality salary = base × (1 + 17.06%). Pick a grade to compute it.
× 26 pay periods = $0/yr
+ 13 sick + 11 holidays = 44 paid days/yr
TSP match: 5% (1% auto + 4% match) = $0
FERS pension: each year of service adds about 1% of your high-3 salary to your annual pension (1.1% if you retire at 62+ with 20+ years). Not added to cash totals.
Health: $0/yr
| Factor | Your GS | Contractor offer |
|---|---|---|
| Salary | — | — |
| Bonus | — | $0 |
| Retirement match | $0 TSP | $0 |
| Health premium you pay | $0 | $0 |
| Net cash + match | $0 | $0 |
| Paid days off / yr | 44 leave + sick + holidays | — |
Enter both sides.
Enter your years of service (GS only).
Uses the 2026 OPM GS base and locality tables and the numbers you enter. Estimates only; confirm benefits with the offering company and your HR.
Bill rate vs salary
A labor category on a government contract is often billed at a published ceiling rate. GSA publishes those ceiling rates on GSA CALC+ (buy.gsa.gov/pricing). That rate is the most the government can be billed for the category. It is a ceiling bill rate, not your salary.
Your salary is lower than the bill rate because the bill rate also covers overhead, fringe, G&A, and the contractor's fee. There is no fixed multiplier. Never treat a posted ceiling bill rate as your offer. Ask the recruiter for the actual salary for the requisition.
Why there's no conversion formula
GS pay is set by the General Schedule and your locality. A contractor's pay is set by the employer within what the contract's labor category and rate structure allow. Two people with the same grade can land very different offers because the number depends on the labor category, level, contract funding, clearance, and how the employer prices the role. Compare a specific offer to your specific GS pay, not a grade to a salary.
Before you accept: checklist
Salary is one part of the package. Work through these before you commit. Your answers stay in this browser.
Saved in this browser only. Clearing site data resets it.
Before and after
Offer says $130,000, more than my GS-13 pay, so it must be better.
Worksheet output (GS-13 step 5, Rest of U.S., contributing 5% to TSP): $120,629 salary + $6,031 TSP match = $126,660 in cash and match. The $130,000 offer with a 4% 401(k) match is $135,200, $8,540 more in cash and match, but I'd have 18 fewer paid days (worth about $8,351) and stop accruing a FERS pension. To match my GS package after the paid-day difference, I'd ask for about $129,811.
Find your labor-category level
If you are not sure what level to target, estimate it from your experience and education, then compare the offer to your GS pay.
Estimate your level with the Level Calculator
Enter your years, education, and clearance to see the labor-category level you likely qualify for.
Open the Level CalculatorFrequently asked questions
Do contractors make more than GS employees?
It depends on the labor category, level, contract, location, and clearance. There is no single answer and no reliable statistic that covers every case. Compare the specific offer to your specific GS pay and benefits using the worksheet above, not a general rule.
Can I negotiate a contractor salary from my GS grade?
Not directly. A contractor salary is set by the employer for the labor category and level, not by your GS grade. Use your GS pay as a reference for your living costs, but negotiate on the labor category, level, and scope.
What's the difference between a bill rate and a salary?
A bill rate is what the government is charged for a labor category; a salary is what you are paid. GSA CALC+ publishes ceiling bill rates (buy.gsa.gov/pricing), labeled "ceiling bill rate, not salary." Your salary is lower because the bill rate also covers overhead, fringe, G&A, and the contractor's fee.
What GS grade equals a senior contractor?
There is no exact match, but the GS grade to labor category guide maps GS grades to Junior, Mid, and Senior levels.
What benefits do I lose leaving federal service?
Potentially your FERS pension, the TSP match structure, FEHB health benefits, federal leave accrual, and the job-security protections of federal employment. Walk through the Before you accept checklist before you decide.
Start your military to GovCon resume translation
Start translatingEstimate the labor-category level your experience qualifies for.
Browse GovCon labor categories, duties, and GSA rate ranges.
GS series pages mapped to GovCon labor categories.
GS grades and labor categories are different frameworks, so they do not convert one-to-one. Use your grade to aim at Junior, Mid, or Senior, then prove the fit with education, years, and scope.
A contractor resume is 1 to 2 pages and built for a recruiter's 30-second scan. A USAJOBS federal resume runs 4 to 6 pages and is built to prove every qualification. Switching means cutting, reordering, and quantifying.
Your labor category depends on three things: years of relevant experience, education level, and the scope and complexity of your work. Rank and GS grade only point to a likely tier.
More military to GovCon resume guides.
Last checked 2026-10-21.