Early Marker Set for 2015 Raise

An early marker has been set for the January 2015 –not 2014–general schedule pay raise, as the Bureau of Labor Statistics has reported that the employment cost index measure used for determining the across-the-board component of that raise was 1.8 percent in the pertinent measuring period. Under federal pay law, the figure is supposed to be used in setting the raise recommendation in the White House’s annual budget proposal, due in February, for the fiscal year that starts the following September: 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 additional locality pay is supposed to be paid on top, sufficient to virtually close local pay gaps. That system has never been implemented as designed, however, and federal salary rates have been determined in the annual budget process. For 2014, a 1 percent raise, with the entire amount paid across the board and no locality component, is in progress but still not finalized. It will take effect unless Congress acts on the issue before the end of next month.