White House Expected to Propose 4.6% Federal Employee Pay Raise in FY 2023

The Biden administration is projected to propose the largest pay raise for federal employees in 15 years at 4.6 percent. Federal News Network has reported that the pay increase for federal employees is a part of the White House's fiscal year 2023 budget request, which is expected to be presented to Congress following the State of the Union address.

In its annual “passback” guidance, the Office of Management and Budget (OMB) informed agencies of the 4.6% raise plan and increased funding to cover the additional salaries and costs. However, OMB did not distinguish between locality-based and across-the-board raises.

The Consumer Price Index report from the Bureau of Labor Statistics puts the annual inflation rate for 2021 at 7 percent. The Biden Administration introduced an average 2.7 percent pay raise for federal employees effective in January 2022.

Also pushing for a federal employee pay raise, Rep. Gerry Connolly (D-VA) and Senator Brian Schatz (D-HI)  introduced the Federal Adjustment of Income Rates (FAIR) Act in both houses of Congress. The bill would codify a 5.1 percent raise for federal employees. As previously reported in FEDmanager, the FAIR Act supports a 4.1 percent across-the-board pay raise and a 1 percent increase in locality pay for FY 2023.

For FY 2022, the Biden Administration proposed, and Congress approved, a pay increase of 2.7 percent. Congress authorized a 1 percent raise for federal employees in FY 2021, and a 3.1 percent increase the year prior.

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