Order Finalizes 1 Percent Raise

President Obama has issued an executive order finalizing what has been evident for many months, that federal employees will get a 1 percent raise in January, the second straight year an increase of that size is being paid by default after Congress allowed such an increase by taking no action. The raise will be effective with the first pay period of the new year, in most cases January 11. The increase, technically applying under a provision of law pertinent only to the GS system, will also act as a cap for raises under the wage grade system, which has a separate locality system under which raises are paid at differing times of the year depending on the cycle of pay comparisons. That cap was specified in the budget measure carrying most agencies through the rest of this fiscal year. Under OPM guidance, the raise also will be applied to special rate pay schedules, which pay higher rates for certain positions deemed to be in high demand. The same special rate schedules will remain in place and agencies did not ask to increase or decrease any rates. Uniformed military personnel also will receive a 1 percent increase, effective January 1 for them.