The 5.2 percent amount would be an average increase, with actual amounts ranging by locality. Image: Andy Dean Photography/Shutterstock.com
By: FEDweek StaffUPDATED: President Biden has proposed a 5.2 percent pay raise for federal employees for January 2024, as part of a budget plan that kicks off what is shaping up to be a contentious year pitting the White House and the Democratic-controlled Senate against the House Republican majority.
In recommending that increase, which would be the largest in decades, Biden again backed the figure indicated by federal pay law resulting from an employment cost index measure of private sector wage growth (not inflation). He had done the same in his prior two budget proposals for 2022 and 2023, and in both cases Congress allowed the recommended increase to go into effect by default by taking no position.
That law calls for using the indicated number as the across the board component of a raise, with locality increases to be added on top. That law never has been followed as envisioned, however, and in many years the figure indicated for the across the board component has been used for the entirety of the raise, with some of that figure carved out for locality pay.
A raise of that size presumably would be split in that way, although the budget proposal does not address that issue. Splitting the raise would result in the 5.2 percent amount becoming an average, with actual increases ranging by locality from several tenths of a percent below to several tenths above.
Federal employee unions and some Democrats in Congress have been pushing for an 8.7 percent increase. The unions have said they will continue pushing for that figure.
However, with Republicans now in control of the House, even Biden’s lower figure faces a much less favorable reception than did his recommendations the last two years with the House under Democratic control. That could result in language being included in a spending bill for a lower figure—potentially, even zero—that would have to be worked out in the budget process.
Biden’s budget proposal meanwhile did not recommend significant changes to federal employee benefits. However, House Republicans could push for savings in those areas during the budget process, as well. Traditionally, that has meant targeting retirement and health insurance.
Shutdown Meter Ticking Up a Bit
Judge Backs Suit against Firings of Probationers, but Won’t Order Reinstatements
Focus Turns to Senate on Effort to Block Trump Order against Unions
TSP Adds Detail to Upcoming Roth Conversion Feature
White House to Issue Rules on RIF, Disciplinary Policy Changes
Hill Dems Question OPM on PSHB Program After IG Slams Readiness
See also,
How Do Age and Years of Service Impact My Federal Retirement
The Best Ages for Federal Employees to Retire
