OPM Raises Minimum Wage for Civilian Federal Employees to $15 Per Hour
The Office of Personnel Management (OPM) has issued guidance on how agencies should ensure civilian federal employees earn at least $15 per hour, modifying both the General Schedule (GS) and Federal Wage Service (FWS) pay scales. The policy change, initially outlined in President Biden's January 2021 executive order, will affect approximately 67,000 employees.
"As the largest employer in the country, how the federal government treats its workforce has real impact. The Biden-Harris Administration believes that the federal workforce should be treated with dignity and respect. Raising pay rates across the federal government to a minimum of $15 per hour reflects our appreciation for the federal workforce and our values as a nation,” stated OPM Director Kiran Ahuja in a statement.
Agencies have until January 30, 2022 to implement the changes as the rate will take effect for the pay period beginning on that date. If any agency fails to meet the deadline, they will have to retroactively implement the $15 per hour rate.
“And because 85 percent of federal workers live outside the DC area, it is hard to imagine a single action that could have a more significant positive impact on all American workers’ paychecks beyond raising the federal minimum wage itself, which would take an act of Congress,” stated American Federation of Government Employees (AFGE) National President Everett Kelley, “Setting a new, $15 per hour wage floor for federal government work will encourage employers across the country who are currently paying poverty wages to compete for labor and start paying fairer rates, lifting the wages of American workers across the country.”
To implement the changes, OPM created a single nationwide pay scale for employees in GS-1 through GS-4. The new special rate for the first step of GS-1 is set at $31,305 annually, GS-2 at $31,931; GS-3 at $32,570; and GS-4 at $33,221.
The Department of Defense (DOD) accounts for the largest change, with 50,000 operational employees listed as “non-appropriated fund” employees. Among the other categories are 9,700 custodial workers, food service workers and housekeeping staff at the Department of Veterans Affairs (VA), as well as 2,000 people working for the Department of Agriculture (USDA), including plant protection technicians and wildland firefighters.