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US civil servants’ salary is broken into 2 numbers: Base Rate and Locality Rate. The first is based on their grade and time in grade. The second is wholly based on where their job is and is a percentage of the base rate. It goes from ~16% base to in the 30s%. It drastically needs to be more granular and updated in a lot of locations but this could work for a lot of jobs.
Then federal minimum wage sets the base rate and states and localities set Locality rate. States and cities could even use this to incentivize workers to move there at the cost of wages increasing across the board.
That seems like a much more sensible (and realistic) approach to me.