diff --git a/src/components/HrTools/PdsGoalCalculator/calculations/salaryCalculation.test.ts b/src/components/HrTools/PdsGoalCalculator/calculations/salaryCalculation.test.ts
index c78088deed..99088735ac 100644
--- a/src/components/HrTools/PdsGoalCalculator/calculations/salaryCalculation.test.ts
+++ b/src/components/HrTools/PdsGoalCalculator/calculations/salaryCalculation.test.ts
@@ -48,6 +48,19 @@ describe('calculateSalaryTotals', () => {
       expect(result.grossMonthlyPay).toBeCloseTo(5300);
     });
 
+    it('multiplies monthlyBase by geographicMultiplier to produce grossMonthlyPay', () => {
+      const payRate = 60000;
+      const geographicMultiplier = 1.01;
+      const result = calculateSalaryTotals(salaried({ payRate }), {
+        geographicMultiplier,
+        employerFicaRate: FICA_RATE,
+      });
+      expect(result.monthlyBase).toBe(payRate / 12);
+      expect(result.grossMonthlyPay).toBeCloseTo(
+        (payRate / 12) * geographicMultiplier,
+      );
+    });
+
     it('ignores hoursWorkedPerWeek', () => {
       const result = calculateSalaryTotals(
         salaried({ hoursWorkedPerWeek: 40 }),
diff --git a/src/components/HrTools/PdsGoalCalculator/calculations/salaryCalculation.ts b/src/components/HrTools/PdsGoalCalculator/calculations/salaryCalculation.ts
index d47af4622d..9be7972240 100644
--- a/src/components/HrTools/PdsGoalCalculator/calculations/salaryCalculation.ts
+++ b/src/components/HrTools/PdsGoalCalculator/calculations/salaryCalculation.ts
@@ -31,7 +31,7 @@ export const calculateSalaryTotals = (
     calculation.salaryOrHourly === DesignationSupportSalaryType.Salaried;
 
   const monthlyBase = isSalaried ? payRate / 12 : (payRate * hours * 52) / 12;
-  const grossMonthlyPay = monthlyBase * (1 + geographicMultiplier);
+  const grossMonthlyPay = monthlyBase * geographicMultiplier;
   const employerFica = grossMonthlyPay * employerFicaRate;
   const subtotal = grossMonthlyPay + employerFica;