Fedweek

Reminder: Pay Raise Doesn’t Take Effect Until January 14

As a reminder, the average 5.2 percent 2024 federal employee pay raise will not be reflected in the next pay distribution that employees receive, since annual raises take effect with the first full pay period of the new year—which in most cases will be January 14-27 in this case—and not at the start of the calendar year.

The 14th is a notably late start to the year’s first full pay period, a result of the rare situation in which 2023’s first full pay period started with the calendar year on January 1.

Typically, employees receive a pay distribution for a pay period about a week to 10 days after it ends. That means the distribution next week or early the following week will cover the December 31-January 13 biweekly period.

While the raise will average 5.2 percent—the largest in four decades—it will vary by locality from 5.7 percent in the Seattle-Tacoma locality to 4.94 percent in the Miami area. It will be 4.99 percent in the locality with the most employees, “rest of the U.S.” locality for areas outside the city areas with their own rates.

Blue-collar employees receive their raise at differing times of a fiscal year, including some who will get raises retroactive to last October, the start of the fiscal year. Wage grade employees generally receive the same percentage as GS employees locally but there is a complex capping mechanism in place.

In contrast, for retirees, the COLA adjustment—3.2 percent under CSRS, 2.2 percent under FERS for those eligible—should have been received with their January payout last week. A 3.2 percent COLA also applies to Social Security benefits.

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See also,

5 Steps to Protect Your Federal Job During the Shutdown

Over 30K TSP Accounts Have Crossed the Million Mark in 2025

The Best Ages for Federal Employees to Retire

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