What is high-3 salary?

High-3 salary is the average of your highest 36 consecutive months of basic federal pay. It is used to calculate your FERS pension (High-3 × Years of Service × 1% or 1.1%).

Is my high-3 always my last 3 years?

Usually, but not always. Your high-3 is your highest 36 consecutive months, which could be earlier in your career if you had higher pay then (e.g., before a lateral move or locality change).

What counts toward high-3 salary?

Included: Base pay, locality pay, special rate supplements, LEO availability pay, and shift differentials (WG). Excluded: Bonuses, overtime, awards, allowances, night/Sunday differentials (GS), and COLA.

Does locality pay count toward my high-3?

Yes. Locality pay is included because retirement deductions are withheld from it. For example, the 2026 DC locality rate is 33.94%, so a GS-12 Step 1 base of $76,463 becomes $102,415 with locality - the full amount counts toward your high-3.

How do promotions affect my high-3?

If promoted during your highest 36 months, your high-3 includes both grades weighted by time. For example, 12 months at GS-11 ($95,878) plus 24 months at GS-12 ($103,000) produces a weighted average. Earlier promotions maximize your high-3.

Can I have gaps in my high-3 period?

The 36 months must be consecutive but not necessarily continuous. If you left federal service and returned with no intervening federal employment, you can combine both periods. However, you cannot cherry-pick your 36 highest individual months from different periods.

How do within-grade increases (WGIs) affect my high-3?

WGIs directly increase your high-3 since they raise your basic pay by approximately 3% per step. If a WGI is approaching and you are near retirement, waiting for that step increase will boost your high-3 and lifetime annuity.

What if I take a demotion near retirement?

Your pension is protected. OPM uses your HIGHEST consecutive 36 months, not necessarily your LAST 36 months. If you were a GS-13 from 2020-2024 then demoted to GS-12, your high-3 will use the GS-13 years since they produce a higher average.

How does part-time work affect my high-3?

OPM uses a "deemed" full-time salary rate for part-time work when calculating your high-3. This means your high-3 is based on what you would have earned full-time. However, your final annuity is then prorated based on actual hours worked over your career.

How can I maximize my high-3 salary?

Strategies: 1) Time promotions to occur early in your final 3 years, 2) Seek high-locality positions before retirement, 3) Wait for pending WGIs before retiring, 4) Request acting/temporary promotions, 5) Retire after January pay raises take effect.

Calculator

High-3 Salary Calculator

Calculate the average of your highest 36 consecutive months of basic pay — the number that drives your FERS pension.

Reviewed by Jonathan D., 20-year federal employee · Formulas verified against OPM.gov · Updated June 2026

What is High-3?

Your high-3 is the average of your highest 36 consecutive months of basic pay — used to calculate your FERS annuity. Only basic pay counts toward it: overtime, bonuses, awards, and cash allowances do not, though locality-adjusted salary does.

Salary history

Period 1

1.00 yr factor · weighted $95,878

Start date

End date

Annual salary

Description (optional)

Period 2

1.00 yr factor · weighted $101,401

Start date

End date

Annual salary

Description (optional)

Period 3

1.00 yr factor · weighted $105,829

Start date

End date

Annual salary

Description (optional)

Tip: add separate periods for each promotion, step increase, or locality change.

Your High-3 average36 months — full High-3 · Jan 2024–Dec 2026

$101,036

High-3 average

Annual basic pay

$8,420

Monthly average

High-3 ÷ 12

Months entered

Target: 36

$33,342

Pension at 30 yrs

High-3 × 30 × 1.1%

High-3 = Σ(salary × time factor) ÷ years. Each rate is weighted by how long you held it (OPM 360-day convention). We scan every 36-month window and report your highest one. Estimates only — OPM uses your official personnel records. Estimate your full FERS pension.

How the high-3 calculation works

Your high-3 is the average of your highest 36 consecutive months of basic pay. OPM uses it as one of three components in your FERS pension formula: High-3 × years of service × 1% (or 1.1%).

OPM calculates the average using a 360-day year (30 days per month). Each salary rate you received during the 36-month window is weighted by the time you held it — so a promotion, locality change, or within-grade increase contributes proportionally to your final average.

High-3 = (Sum of weighted annual salaries) ÷ 3

Each rate is multiplied by a time factor based on how long you received it. For a full year at one rate the factor is 1.0; for 6 months it is 0.5. OPM's 360-day chart provides exact factors for any period.

What counts toward your high-3

Included in high-3

Base pay — GS/WG salary for your position

Locality pay — geographic adjustments (DC: 33.94%)

Special rate supplements — hard-to-fill position pay

LEO availability pay — 25% law-enforcement premium

Shift differentials — for WG (blue-collar) employees

Excluded from high-3

Overtime pay — not part of basic pay

Bonuses & awards — one-time payments

Night/Sunday differential — for GS employees

COLA — non-foreign area cost adjustments

Lump-sum leave — paid at separation

Worked example: a promotion

An employee in Washington, DC retiring January 2027, promoted from GS-11 to GS-12 in their final three years.

High-3 salary timeline example
Period	Grade/step	Salary	Factor	Weighted
Jan 2024 – Dec 2024	GS-11 Step 3	$95,878	1.0	$95,878
Jan 2025 – Dec 2025	GS-12 Step 1	$101,401	1.0	$101,401
Jan 2026 – Dec 2026	GS-12 Step 2	$105,829	1.0	$105,829
Total weighted pay			3.0	$303,108

High-3 average: $303,108 ÷ 3 =$101,036

At 25 years of service at age 60: $101,036 × 25 × 1% = $25,259/year pension.

Worked example: moving to a lower locality

What happens when you move from Washington, DC (33.94%) to Rest of U.S. (17.06%) two years before retirement.

High-3 salary timeline example
Period	Locality	Salary	Factor	Weighted
Jan 2024 – Dec 2024	DC (33.94%)	$122,299	1.0	$122,299
Jan 2025 – Dec 2025	RUS (17.06%)	$107,009	1.0	$107,009
Jan 2026 – Dec 2026	RUS (17.06%)	$107,919	1.0	$107,919
Total weighted pay			3.0	$338,788

But wait: if this employee stayed at GS-12 Step 10 in DC from 2021–2023, their high-3 from the earlier period would be about $117,000 — roughly $1,000/year more pension over their lifetime.

Key takeaway: when moving to a lower-locality area, use this calculator to check whether an earlier 36-month period produces a higher average. OPM uses your highest period, not your last.

Edge cases & special situations

Acting positions & temporary promotions

Yes, they count. If you receive a temporary promotion or detail to a higher-graded position with higher pay (documented on SF-50), those months at the higher rate count toward your high-3. A 6-month temporary promotion to GS-14 while you're a GS-13 means 6 months at the GS-14 rate factor into your average.

Extended LWOP (leave without pay)

LWOP of 6 months or less per calendar year is treated as if you were at work. LWOP exceeding 6 months in a calendar year is not credited — your high-3 window would need to span more calendar time to capture 36 months of actual credited service.

Phased retirement

During phased retirement, your high-3 is calculated using your pre-phased-retirement salary history. You work part-time (typically 50%), receive 50% of your annuity, and continue earning service credit. At full retirement, your annuity is recalculated to include the additional service.

No "terminal leave" in federal service

Federal civilian employees cannot take terminal leave. You work until your retirement date, then receive a lump-sum payment for unused annual leave — that lump sum is paid after retirement and is not included in your high-3.

Legislative watch · High-5 proposal

The "high-5" proposal — which would change the calculation from 36 months to 60 — was removed from the 2025 reconciliation bill. Federal employees keep the high-3 for now. A separate bill (S.26) proposes excluding locality pay from high-3 for new employees; it has been introduced but not passed.

Last updated January 2026 · we monitor legislative changes affecting federal retirement.