Early Marker Set for 2008 Raise

An early marker has been set for the January 2008—not 2007—federal pay raise, as the Bureau of Labor Statistics reported that the employment cost index measure used for determining the across-the-board component of that raise was 3 percent in the pertinent measuring period. Under federal pay law, a half percentage point is supposed to be shaved off that amount in order to keep employees roughly apace with private sector wage growth, and locality pay is supposed to be paid in addition, in order to close local pay gaps. That system has never been implemented as designed, however–according to the latest government figures, a total raise of 18.41 percent would be needed to bring federal pay in compliance with the law.