In each year of the current Administration, Congress has been silent on the raise allowing Biden’s recommendation to take effect by default. Image: Mega Pixel/Shutterstock.com
By: FEDweek StaffAn early marker has been set for the January 2025 federal employee raise, with an increase in the employment cost index of 4.5 percent over the 12 months ending in September, according to a report presented at the annual meeting of the Federal Salary Council. (Note: This is for the 2025 raise, not the 2024 raise, which is on pace for 5.2 percent as Biden affirmed recently.)
Under federal pay law, the ECI measure of growth in wages—not living costs—for the 12 months through each September is supposed to be used in setting the across the board portion in the White House’s subsequent budget proposal for the next fiscal year. A half percentage point is to be shaved off the indicated amount and separate locality pay is supposed to be paid in addition, varying by locality.
That formula often has not been followed in practice, though. In some years the ECI number has played little to no role in a determination of a raise. In other years the full or reduced ECI number alone has become the total raise, with locality pay sometimes carved out of it.
The pattern so far in the Biden administration has been to recommend a total raise equal to the unreduced ECI number, with part carved out as locality pay—for 2024, a 5.2 percent total, with funds equal to 0.5 percentage points of that used for locality pay, producing raises by locality from slightly above to slightly below the average.
In each year, Congress has been silent on the raise allowing Biden’s recommendation to take effect by default. It is on track to do the same this year for 2024 although that is not final.
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