Federal Employees in Line for Largest Pay Hike in 40 Years
President Biden formalized his plan to give federal workers the biggest pay raise in four decades.
In a letter to House and Senate leadership, the President formally stated his plans for an across the board pay increase of 4.7 percent in 2024, with locality pay increases averaging 0.5 percent. That will result in an overall average increase of 5.2 percent for civilian federal employees.
The President first proposed the 5.2 percent raise as part of his fiscal year 2024 budget.
It would be the biggest increase since federal workers received an 9.1 percent pay raise in 1980 under the Carter Administration.
In his letter, President Biden indicated a pay raise is crucial to keeping the federal government a competitive employer, especially as inflation remains above the Federal Reserve’s two percent target rate.
“We must attract, recruit, and retain a skilled workforce with fair compensation in order to keep our Government running, deliver services, and meet our Nation’s challenges today and tomorrow. This alternative pay plan decision will continue to allow the Federal Government to employ a well‑qualified Federal workforce on behalf of the American people, keeping pace with prior wage growth in the labor market,” President Biden wrote.
The raise will take effect unless Congress enacts a different pay scheme for 2024.
Still, some members of Congress and federal employee groups urged for a larger pay raise. The Federal Adjustment of Income Rates (FAIR) Act sponsored by Representative Gerry Connolly (D-VA) and Senator Brian Schatz (D-HI) called for an average increase of 8.7 percent.
“While not quite what Senator Schatz and I called for in our FAIR Act, a 5.2 percent average pay raise is the highest since the Carter Administration and will help us recruit and retain the federal workforce of tomorrow,” said Representative Connolly in a statement.
Federal employee organizations also applauded the pay raise as a strong start.
“Frontline federal employees earn 24.09% less than people in similar private sector jobs… Biden’s plan would help chip away at that deficit and make federal employment more competitive,” National Treasury Employees Union (NTEU) National President Doreen Greenwald said in a statement to Federal News Network.