President Biden Formally Announces FY 2022 Pay Raise

President Joe Biden submitted an alternative pay plan to congressional leaders on August 27 authorizing a 2.7 percent pay raise for most general schedule civilian employees. The raise is effective January 1, 2022.

Appropriations legislation moving through the House of Representatives at this time remained silent on a pay raise. In doing so, congressional appropriators essentially deferred to the president’s originally proposed 2.7 percent increase. Unless the president submitted an alternative pay plan to congressional leaders, federal employees would have received locality-based adjustments based on a formula constructed in the Federal Employees Pay Comparability Act. The president had until August 31 to submit such a plan.

The president’s letter last week formally announced an alternative pay plan providing a 2.2 percent base pay increase and an average locality pay increase of 0.5 percent – resulting in an overall average increase of 2.7 percent.

The increase surpasses FY 2021’s 1 percent pay increase. In FY 2020, President Trump proposed a 2.6 percent federal pay raise which Congress ultimately raised to 3.1 percent in their omnibus appropriations legislation. Similarly, Congress may still choose to codify a larger or smaller pay increase in FY 2022 appropriations legislation.

Representatives of federal employees have expressed both optimism and concern regarding the pay raise.

National President of the National Active and Retired Federal Employees Association (NARFE), Ken Thomas, told Federal News Network, “NARFE is gratified, too, that the president answered its call earlier this year to increase locality pay rates by 0.5%, on average, ensuring that the average pay increase is on par with recent private-sector wage growth and the anticipated military pay increase.”

Meanwhile, National Treasury Employees Union (NTEU) President Tony Reardon expressed hope for a larger increase. Reardon also called for legislation permitting such an increase. “NTEU believes that a 3.2% average raise is merited in 2022, as called for in the [Federal Adjustment of Income Rates (FAIR)] Act legislation introduced earlier this year,” Reardon said. “We will continue to urge Congress to implement an average 2.2% increase across the board, plus a 1% boost toward locality pay.”

Professional Managers Association (PMA) President Chad Hooper also expressed concern for the continued trend of leaving pay raise decisions to the president rather than Congress.

Following passage of appropriations legislation in the House earlier this year, Hooper explained in a statement, “To start, we are grateful the Subcommittee provided a silent endorsement of the President’s proposed 2.7 percent pay increase. Federal employees have been the backbone of our nation during and in the evolving aftermath of the coronavirus pandemic. While a deferral to the President’s proposed pay increase is appreciated, it once again leaves federal employee pay in the hands of the president rather than the legislature – the body entrusted with the power of the purse. Rather than silent support, we urge Congress to explicitly allocate funding for the pay raise in their appropriations bills. This is the only way to provide federal employees the certainty and support they have earned.”

Federal employee groups are also calling for Congress to increase the pay cap for federal law enforcement.

President of Federal Law Enforcement Officers Association (FLEOA) Larry Cosme asked Speaker of the House Nancy Pelosi to raise the pay cap for federal law enforcement following her decision to raise the pay cap for congressional staff members. He explained, “we request your support for an equally important effort to raise the pay cap for the brave men and women who work hard each day to preserve the safety of our communities, defend American citizens at home and abroad, and provide protection to our elected officials.”