Order Finalizes 2006 Raises

President Bush has issued an executive order finalizing the January 2006 federal pay raises, splitting the 3.1 percent average general schedule increase, as expected, as 2.1 percent in across-the-board raises and the other percentage point as locality pay. The action means that GS employees will see raises ranging from about 2.2 to 5.6 percent by locality. Under terms of the spending bill containing the increase, wage grade employees, who are under a separate locality system, will have their raises capped at the local amount for GS employees. For most GS employees, the raise takes effect with the first pay period of the new year, which for most is January 8; the first paychecks reflecting the increase will come out late in January or in early February, depending on agency payroll cycles. Wage grade employees get raises at varying times of the year, depending on locality.