An official website of the United States government
Here’s how you know
Official websites use .gov
A .gov website belongs to an official government organization in the United States.
Secure .gov websites use HTTPS
A lock
( )
or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
MV-2025-04
August 1, 2025
MEMORANDUM FOR ALL GSA ACQUISITION WORKFORCE
FROM AND DIGITALLY SIGNED BY: Jeffrey A. Koses, Senior Procurement Executive, Office of Acquisition Policy
SUBJECT: Cancellation of MV-2021-08 Adjusting Wages to Address Wage Compression Caused by the Federal Minimum Wage Increase
On this page
The purpose of this Acquisition Letter (AL) is to cancel MV-2021-08 [PDF - 882 KB], Adjusting Wages to Address Wage Compression Caused by the Federal Minimum Wage Increase.
Acquisition Letter MV-2021-08 was issued on March 7, 2022, to address the effects of the large increase to the Federal hourly minimum wage on employees not covered (e.g. supervisors or lead workers) by Executive Order (E.O.) 14026 Increasing the Minimum Wage for Contractors. The AL provided guidance to contracting officers for use when negotiating equitable adjustments based on wage compression.1
On March 14, 2025, E.O. 14236, Additional Recissions of Harmful Executive Orders and Actions was issued. It revoked E.O.14026 Increasing the Minimum Wage for Federal Contractors. This action removed the basis for AL MV-2021-08, Adjusting Wages to Address Wage Compression Caused by the Federal Minimum Wage Increase.
This memorandum and resulting cancellation of MV-21-08 is effective immediately. Contractors may still request economic adjustments as appropriate per the clause(s) identified in their contract.
Acquisition Letter MV-2021-08 is hereby canceled.
Any questions regarding this letter may be directed to GSARPolicy@gsa.gov.
______________________________
1 Wage compression occurs when: 1) the pay of one or more employees is very close to the pay of more experienced employees in the same job; 2) employees in lower-level jobs are paid almost as much as their colleagues in higher-level jobs, including managerial positions; or 3) there’s little difference in pay between employees regardless of differences in their respective knowledge, skills, experience or abilities.
Error, The Per Diem API is not responding. Please try again later.
No results could be found for the location you've entered.
Rates for Alaska, Hawaii, and U.S. territories and possessions are set by the Department of Defense.
Rates for foreign countries are set by the Department of State.
Rates are available between 10/1/2023 and 09/30/2026.
The End Date of your trip can not occur before the Start Date.
Traveler reimbursement is based on the location of the work activities and not the accommodations, unless lodging is not available at the work activity, then the agency may authorize the rate where lodging is obtained.
Unless otherwise specified, the per diem locality is defined as "all locations within, or entirely surrounded by, the corporate limits of the key city, including independent entities located within those boundaries."
Per diem localities with county definitions shall include"all locations within, or entirely surrounded by, the corporate limits of the key city as well as the boundaries of the listed counties, including independent entities located within the boundaries of the key city and the listed counties (unless otherwise listed separately)."
When a military installation or Government - related facility(whether or not specifically named) is located partially within more than one city or county boundary, the applicable per diem rate for the entire installation or facility is the higher of the rates which apply to the cities and / or counties, even though part(s) of such activities may be located outside the defined per diem locality.
U.S. General Services Administration