Federal Employees to Receive 1% Pay Raise in 2021

President Trump recently signed an executive order granting federal employees a 1 percent pay increase in 2021. The order does not affect locality pay rates.

Earlier last year, the administration supported a pay freeze recommended by Senate Republicans. Office of Management and Budget (OMB) Director Russell Vought wrote on November 30, “In the context of budgetary constraints and recent, pandemic-related impacts on non-federal labor markets, the administration supports the policy in the bill to maintain for 2021 the current level of federal civilian pay.”

However, the omnibus spending bill passed in December did not include a provision on pay, allowing the White House to defer to a previously proposed 1 percent pay increase.

This raise will go into effect during the first full pay period of January 2021, so federal employees can expect to see the raise in their next paycheck. This order also finalizes a 3 percent pay raise for military personnel.

This pay raise increases the GS pay cap from $170,800 to $172,500. The pay cap is also increased for career SES appointments, senior level and senior scientific and professional positions who receive performance-based raises. The new minimum for these groups is $132,552 and the maximum is either $199,300 or $183,300. The total compensation cap, the combination of pay and awards, is now $255,800 or $221,400, depending on an agency’s performance evaluation system.

The Vice President and other senior political officials will be subject to a pay freeze until the last pay period of 2021, per an OPM memorandum released Friday.

The Office of Personal Management (OPM) also issued new 2021 salary tables that feds can access for more information. OPM also issued memos on the 2020 Annual Review of Special Rates, Fiscal Year 2021 Prevailing Pay Rate Adjustments, and January 2021 Pay Rate Adjustments.