Section 531.604 - Determining an employee's locality rate(a) An annual locality rate consists of a scheduled annual rate of pay plus an applicable locality payment (representing an annual dollar amount), as determined under paragraph (b) of this section.(b) An agency determines an employee's locality rate by- (1) Determining the employee's official worksite consistent with the rules in § 531.605 ;(2) Determining the locality pay area in which the employee's official worksite is located, consistent with the locality pay areas established in § 531.603 ;(3) Identifying the locality pay percentage in effect in the applicable locality pay area;(4) Increasing the employee's scheduled annual rate of pay by the applicable locality pay percentage and rounding the result to the nearest whole dollar (counting 50 cents and over as the next higher dollar); and(5) Applying any applicable limitation as described in § 531.606 .(c) A locality rate may be expressed as an hourly, daily, weekly, or biweekly rate, as provided in § 531.607 . 70 FR 31303 , May 31, 2005