Review of Compensation Comparability Report

Gao ID: GGD-96-34R October 30, 1995

Pursuant to a congressional request, GAO reviewed a report comparing federal civilian pay and private-sector pay. GAO noted that: (1) in contrast to a number of other studies, the report concludes that federal civilian employees receive about 51 percent more in salaries, wages, and benefits over their careers than do private-sector employees and that a 33.7 percent wage reduction is needed to bring total federal compensation in line with total private-sector compensation; (2) federal pay policy is based on ensuring pay comparability without consideration of benefits; (3) the government does not achieve optimum efficiency if it overpays or underpays employees; (4) it is more difficult to compare benefits because they vary considerably; (5) the report's methodology is invalid and its assumptions are not well supported; (6) the report does not adequately compare federal and private-sector compensation, take into consideration occupational differences between the two sectors, and address private-sector employment advantages and federal employment disadvantages; and (7) the report fails to justify using identical starting salaries, greater projected federal career salaries, and assumed but unquantified advantages allegedly enjoyed by federal employees.



The Justia Government Accountability Office site republishes public reports retrieved from the U.S. GAO These reports should not be considered official, and do not necessarily reflect the views of Justia.